Automotive Aftermarket is responsible for our spare parts business and delivers innovative repair solutions of original‐equipment quality. Our three brands, LuK, INA and FAG, offer clutch and release systems, engine, and transmission applications, as well as chassis applications. With our REPXPERT brand, we put top priority on offering comprehensive services to garages, by conducting practical training seminars, offering repair assistance and developing special tools. Additionally, our recently launched brand TruPower offers a wide range of lubricants for all the automotive and industrial segments.
Key strengths and enablers
SKUs offered in the Indian market
In India where we operate
Leading ahead with customer value creation
We proactively work to understand our customers’ needs and launch products that create long-term value for them. When BSVI became applicable for commercial vehicles, we figured that many of the CVs will now become unserviceable because of the type of clutch installed in them. We seized the opportunity by launching our serviceable clutches, which could not only be retrofitted to meet the new norms, but also increased in terms of the life of the clutches by 2x, creating value for the end-user. Our REPXPERT training programme for garages is also built on a similar concept, and endeavours to create value for the mechanics in the formal and informal sectors.
The recent years have seen an emergence of multi-brand automobile repair outlets, and these outlets are expected to capture 40% of the car servicing segment by 2023.
We are increasing tie-ups with these multi-brand garages across the country, reaching out to them through independent channels and modifying our service model, wherever necessary.
With internet availability reaching the villages of India, and Indian millennials becoming more cognizant of the products used in their automobiles, the independent aftermarket is expected to see a shift from wholesale to consumption centres. The online platforms are expected to impact aftermarket volumes. As multiples sales models consolidate, e-commerce is expected to contribute to 4-5% of components aftermarket revenue in the coming years.
We are capturing the growth opportunities with a focus on service- level improvement across our network and creating a comprehensive virtual presence. We are working to cater to the digital distributor network that will act as a supporting mechanism to the traditional market. We are also increasing our presence on online platforms, in addition to listings on e-commerce websites. The response received so far has been very encouraging.
India is one of the world’s fastest growing economies, and the major growth drivers are the country’s increased spending power and the access to real-time information.
In addition to our strong network, we have added 40+ distributors during the year despite challenging circumstances in terms of human capital movement. The new distributors have been primarily added in tier-2 and tier-3 cities, which have significant untapped potential due to limited product availability.
Going forward with TruPower
TruPower, a project initiated and executed completely in India, has become a flagship brand in a short period of time. It offers a range of high-tech and premium base oil with enhanced additive technology, designed to meet requirements for vehicles on Indian roads. It has received a phenomenal response, and this is reflected in the sales figures, online ratings, and the customer and distributor feedback received.
Already 3,00,000+ vehicles across 110+ locations are using the TruPower range. Going forward, we are not only expanding in India, but the indigenously developed product is being taken to the global stage by the Schaeffler Group.
|Contribution to overall performance||9%
Contribution to revenue
Revenue growth over 2020
Schaeffler loyalty index
New products introduced in the market
Schaeffler TruPower anti-freeze coolant
Schaeffler TruPower radiator coolant
Serviceable type cover assembly
Universal joint and shock absorbers
Powering Puneri Paltan
In a first for our brand activation initiative, we joined forces with Puneri Paltan (Pune’s team in Pro-Kabaddi League) as an associated sponsor. As part of the sponsorship, the Schaeffler logo appeared on the team’s jerseys, and also gained visibility by being displayed at different prominent spots at the stadium. The players also promoted our products across digital, out-of-home, and print mediums. The participation in this home-grown sport drew attention and praise among our target audience, thus helping increase our recall value.
Brand association with Puneri Paltan Pro-Kabaddi garnered high appeal among our stakeholders and influencer groups such as mechanics retailers, in addition to general mass due to the game’s popularity.
Mr. Debasish Satpathy
President- Automotive Aftermarket
“The year has been exceptionally good for the aftermarket business, as we have strengthened our leadership position by beating the industry’s average growth with a significant margin. Our revenue has crossed ` 5,000 million, and this success is the product of our team’s synergy and relentless efforts.
Our strategic focus on product diversification and expanding our transmission segment, based on our gap analysis and purchase behaviour, has aided the growth. The new products, especially in the commercial vehicle segment, have been receiving excellent reviews and gaining traction in the previously untapped semi-urban areas. We continue to phygitally expand our pan-India reach by addressing gaps in distribution footprints, wherever necessary.
Our targeted branding exercise is aimed to increase the brand recall of our products.
The external environment has been favourable during the year, in terms of the surging used car sales or the retrofitting of BSVI-compliant clutches in commercial vehicles. Going forward, we see the environment supporting the growth momentum. This growth will be bolstered by continued expansion of age of car parc, multi-brand retail and online markets, and an increasing demand for branded products, driven by the growing economy, especially in the rural and semi-urban areas. We are well-positioned to capture the opportunities with a dedicated team and portfolio.”
Our strategic focus