It’s estimated that India’s reviving construction sector, small medium enterprises (SMEs) and mining sector will improve demand for commercial and OTR vehicles over the next 5 year period. This in turn will increase demand for commercial air filter cartridges, to benefit overall automotive air filter cartridges market in India.
Indian automobile sector reported CAGR of about 11% during 2009-13 in volume terms despite sluggish growth in 2013 due to slower economic growth. Rising fuel prices, increasing financing cost, and weakening of rupee contracted India automotive sector growth. While demand for micro and small SUVs grew, overall passenger car sales reported 2013 YOY sales decline after a decade of reporting growth. Commercial vehicle volume too declined. In 2013, only the two-wheeler segment reported growth in the Indian automotive sector.
Though 2013 bit automakers, automotive sector in India projects growth over the next five years. Low motorization rate, and growing middle class make for cause and effect. With a new Central government in charge, policy changes are anticipated. Overall growth in Indian automotive sector warrants a cascading effect and growth opportunities for the air filter cartridges market here.
Beside OEM demand, passenger car air filter cartridges market is also reporting growth in the replacement segment. Passenger car sales are reviving through 2014, and this trend effects passenger car air filter cartridges demand in the replacement market being directly related to demand for two-wheelers, passenger cars, buses, trucks, etc. Growth being dependent on India’s macro-economic scenario, the country’s air filter cartridges market is among the largest globally with enormous growth potential.
Two-wheeler air filter cartridges segment is projected to be the fastest growing segment in volume terms, followed by the passenger car, off-the-road vehicles, commercial vehicles and three-wheeler air filter cartridge segments said Karan Chechi, Research Director with TechSci Research.