Schaeffler AG, the large German auto component manufacturer aims to increase revenue contribution from aftermarket business to 20% of the total sales globally by 2020, according to a top executive at the company. Schaeffler, who makes engine, transmission and chassis parts, currently earns around 15% of total revenue from aftermarket business globally.
Robert Felger, Senior VP-Product & Marketing at Schaeffler AG said:
“Aftermarket enjoys share of 15-20 percent. We have to admit that there are different dynamics of business for any given market, but a share of 20 percent plus within a given environment is our target for next few years.”
The manufacturer has 11,500 distribution centres worldwide, in India alone they have five factories and three brands – LuK, INA and FAG. Schaeffler currently have around 20,000 products on offer across many sectors, including heavy commercial vehicles and tractors.
Regardless of the slowing of markets in Europe, Schaeffler have continued to innovate and increase content per vehicle. “The major challenge is to forecast the demand as any component manufacturer needs to understand that each and every market different at any given point of time the number of models and makes are increasingly drastically.” Robert Felger.
In order to overcome this issue, the manufacturer has been working closely with their many distributors to understand and know the trends in many markets. As well as this, they are using information technology to interpret data and forecast future demand.
As well as the their three major brands, Schaeffler are also looking to launch the Ruville aftermarket brand which supply 182 parts mostly comprising of steering and suspension parts.