SKF Bearings India Ltd. (India), a 54% owned subsidiary of SKF AB (Sweden) is dramatically extending its new product line of automotive bearing kits, following strong test market sales.

Fast acceptance has led SKF to extend the line quickly; the test market program was launched only three months ago.

The first test market items were all-inclusive wheel end kits for the front and rear of the popular Maruti 800 hatchback. SKF is now introducing 45 additional kits in this first round. Many more are reportedly planned for the near future.

These new kits, packaged by SKF in India and elsewhere around the world, will cover more wheel bearings while also adding clutch release/pilot bearing kits, water pump kits, timing belt and tensioner kits, and suspension kits.

With the expanded lineup, SKF hopes to capture a larger portion of India's rapidly growing automotive aftermarket. "About 40% of our revenue comes from the aftermarket," said Rakesh Makhija, SKF India's new Managing Director, "But with the number of vehicles on the road increasing sharply, we see an opportunity in serving the spares market better."

The increased aftermarket emphasis is undoubtedly also driven by margin analyses. In general, bearings sold into the aftermarket have gross margins at least double those of OEM sales. The aftermarket also tends to be slightly counter-cyclical, helping to smooth out financial and market share gyrations.

Bearing kits, especially wheel end kits, have a mixed history in different markets -- but India is unique in several respects. The most important point, one reseller told eBearing, is that in India, where counterfeit bearings are everywhere, it is comforting to the buyer to get a sealed, prepackaged kit from a highly regarded manufacturer such as SKF.

As with the initial test-market units, all of the new kits will be offered by Sundaram Motors.