Asia Pacific automotive aftermarket is likely to witness significant changes in the upcoming years. The rising popularity of semi-autonomous, electric, hybrid, and autonomous vehicles is predicted to boost the demand for new auto-components in the coming years. Automakers like Tesla, Hyundai, Google, Nissan, Mercedes, Ford, and Volkswagen are leading the change by harnessing cutting-edge technologies like machine learning, artificial intelligence, and robotics engineering into vehicles.
The digitalization of automotive sector, together with the inclusion of sophisticated technologies is set to drive the industry forward. After thorough analysis, the below mentioned three market opportunities have been identified as the driving factors for Asia Pacific automotive aftermarket growth:
Is the future of the automotive sector digital?
With the pandemic boosting online sales, e-tailing has been a new trend on the priority lists of businesses. The automotive industry is also becoming more disruptive, and leading companies are expanding their services online to ride the digital wave. Consider the traditional TVS Group, who is developing more technology-enabled business models. Its most recent project is a "e-mall" for all automotive parts, which is set for launch in June 2022.
The company anticipates that the new digital endeavor will generate 500 crore Indian rupees revenue by the conclusion of the current fiscal year. The automobile parts e-mall is similar to the business models of e-commerce behemoths such as Amazon and Flipkart. TVS Automobile Solutions anticipates that the new business will be India's largest e-mall.
Why are companies focusing on telematics as a perfect after sales service?
As there are presently a significant number of cars on the road, several industry participants are focusing on how to improve the delivery of additional value-added services to existing customers. This is where auto telematics comes in, as it allows manufacturers to connect with all their on-road vehicles and collect data ranging from usage patterns, performance metrics, geo-location, and so on.
This is one of the reasons why data-driven solutions for aftermarket automotive telematics have recently grown in popularity. These technologies enable fleet managers and automobile manufacturers to better meet the needs of their customers, make data-driven choices, and lead industry innovation. As industries recognize the potential in smart telematics solutions, they are likely to broaden their offerings to newer audiences, such as adolescent or senior drivers.
Take the example of Shop-Ware, an end-to-end digital customer experience shop management system, who announced a new collaboration with Voyomotive, a developer of sophisticated telematics solutions for shops and fleets, in May 2022. According to the firms, in a first-of-its-kind connection, shops may now employ VOYO cellular telematics controllers to remotely ingest vehicle data into their system, including scan tool level diagnostics, and third-party predictive analytics.
What is driving growth of autonomous vehicles in India automotive aftermarket?
With the advent of connected cars, APAC automotive aftermarket landscape is witnessing a steady change. In terms of the automobile industry's future, autonomous cars have been a major emphasis area, with businesses working to make them a reality.
Recent advancements by major stakeholders indicate the potential of Asia Pacific’s AV ecosystem. Tata Elxsi for example, developed a full-stack IP called AutonomAI to expedite AV programs in 2020. While Intel decided to collect data on traffic patterns to generate algorithms for autonomous driving in India and elsewhere.
According to government data, driver behavior or mistake plays a role in 94% of crashes, whereas self-driving cars can help minimize driver error. Higher levels of autonomy may lower unsafe and harmful driving habits. This promising aspect may aid in proliferating APAC automotive aftermarket share from autonomous vehicles in the upcoming years.