The renowned global auto component enterprise in India has realigned its core aftermarket focus into vehicle electronics and fuel management systems, maintenance products and thermal management systems.
Delphi Technologies is a force to reckon with in the automotive aftermarket internationally, right from an all-encompassing range of auto parts to equipment and service training required for maintaining sophisticated vehicle systems. Just last month, the company made phenomenal shows at two leading events that happened held at Las Vegas – Consumer Electronics Show (CES) 2019 and Heavy-Duty Aftermarket Week (HDAW) 2019 – with the ‘Blue Matter’ future vehicle propulsion technology concept and advanced common-rail diesel fuel injector portfolio respectively.
Delphi has redefined its core strategies and prime focus in the last 10 years. In 2017, Delphi Automotive renamed itself as ‘Aptiv’ and spun off its powertrain and aftermarket related businesses to a stand-alone company called ‘Delphi Technologies’. While Aptiv’s prime focus remains on power solutions (vehicle electronic architecture) and advanced safety and user experience (electronics and safety), Delphi Technologies is focused on innovating propulsion systems and aftermarket solutions to make passenger cars and commercial vehicles drive cleaner and better.
In an interaction with MOTORINDIA in the first week of January, Mr. Amit Babbar, Country Director – India and Sub-Continent, Delphi Technologies Aftermarket, said: “Delphi’s focus is now aligned towards big opportunities posed by EV revolution and self-driving cars at the global level. The company is making significant investments in such future technology portfolios”.
This global reorientation of Delphi Technologies has impacted part of its Indian operations as well, aftermarket in particular. This means moving out of conventional verticals like mechanical ancillaries, including drive shafts and shock absorbers, he added.
Today the brand’s aftermarket portfolio in the local market includes vehicle electronics and fuel management systems, including fuel pumps and modules, maintenance products, and thermal management systems, including radiators and HVAC compressors.
This also means bringing in its comprehensive product range from global portfolio, Mr. Babbar noted. “For instance, today we have a wide range of products like brake pads, brake fluids, lubricants and coolants for the entire range of cars starting from micro hatchbacks to luxury sedans of renowned German brands”.
It is to be noted that Delphi Technologies aftermarket business in India caters only to passenger car segments and utility vehicles as of now. A dedicated JV Delphi-TVS handles diesel fuel injection portfolio, with a separate aftermarket channel for its products.
Asked about Delphi’s aftermarket growth in recent times, the company claims to have had a golden-run period post the market stabilisation of GST reforms, contributing to the brand’s gaining market presence in the last two years. “Although policy reforms, including demonetization and GST, were disruptive and dampening market sentiments, predominantly due to prevalence of cash transactions at the levels of retailers and consumers, but the demand bounced back after two to three months’ time”, said Mr. Babbar. Our new maintenance products have gained enormous traction since then, he added.
He continued that the year 2018 turned out to be impressive for Delphi, having met all yearly performance figures and registering growth of more than 15 per cent. “2019 seems even more promising, with a very buyout aftermarket scenario… we will also add more products in our local offering from our global line-up”, he claimed.
The company’s aftermarket channel includes more than 100 distributors across the country with over 180 distribution points, along with grass-root level retailers and automotive workshops being prime marketing points. Its products are listed in e-commerce platforms as well, but the online sales is essentially limited to DIY consumables, says Delphi. It also predicts that the emerging chain of multi-branded workshops and auto spares will predominantly drive its aftermarket business in future, especially post new emission norms and electrification of vehicles.
With regard to BS-VI transition, Delphi says that there exists a lot of OEM engagement for its products in petrol fuel management portfolio, even in the two-wheeler segment. “BS-VI may give us an opportunity to venture into this huge market segment in the years to come”, observed Mr. Babbar.