India Automotive Aftermarket: Growth Outlook, Trends, Opportunities & Regional Insights (2024–2030)
The India Automotive Aftermarket, valued at USD 10.3 billion in 2023, is poised to expand to USD 16.76 billion by 2030, registering a CAGR of 7.2%. This rapid growth is fueled by India’s expanding vehicle parc, evolving mobility patterns, technological shifts, and rising demand for replacement parts and value-added services.
Market Overview
India’s vehicle population has reached an impressive 340 million units, and is projected to grow at 8%+ CAGR over the next five years. This surge directly enhances aftermarket demand for replacement components, repairs, diagnostics, accessories, and service solutions.
Key segments driving this growth:
- Two-Wheelers: Expected to rise from 257 to 365 million units
- Passenger Vehicles: Will expand from ~47 million to over 72 million units
Alongside domestic consumption, India is emerging as a strong exporter of aftermarket components across mature and developing international markets, including:
Indonesia, LATAM, Bangladesh, Brazil, Poland, South Africa, East & West Africa, North Africa, Colombia, and the UAE.
India’s strategic manufacturing capabilities and cost-efficiency make it a competitive player in global aftermarket supply chains.
To know the most attractive segments, click here for a free sample of the report: https://www.maximizemarketresearch.com/request-sample/29939/
Transformative Trends Shaping the India Automotive Aftermarket
- Shift Toward Digital Distribution & E-Commerce
The traditional dealer-driven, sequential sales model is being replaced by direct distribution through online channels. Partnerships between OEMs and major e-commerce companies are redefining customer experience.
Example:
Bosch’s collaboration with TMall generated an impressive GMV of USD 290 million (2015–16), showcasing the scale digital channels can deliver.
- Evolving Revenue Mix
Historically, the aftermarket has been dominated by wear-and-tear parts. However:
- Improved OEM part quality is slowing replacement frequency
- Reduced crash-related damage due to advanced vehicle safety features
- Diagnostics, predictive maintenance, telematics, and car-data–driven services are emerging as new growth pillars
Connected vehicles with IoT sensors allow proactive issue detection—creating demand for software-centric aftermarket services.
- Rising Influence of Connected & Intelligent Vehicles
Predictive analytics, remote diagnostics, and AI-based maintenance systems are transforming the aftermarket into a tech-enabled service ecosystem.
Growth Drivers
- Surge in Vehicle Sales
According to MMR’s January 2024 report:
- Overall vehicle sales rose 15% YoY
- Passenger vehicles grew 13%
- Two-wheelers increased 15%
- Three-wheelers surged 37%
- Tractors expanded 21%
Record-breaking monthly volumes in January 2024 (• Passenger vehicles: 3,93,250 units) highlight the rising need for aftermarket repair, maintenance, and parts replacement.
- Rural Demand & New Launches
Factors supporting sales momentum:
- Improved rural income due to favorable agricultural conditions
- Strong marriage season demand
- Successful new model introductions
- Post-budget policy boosts
These translate into increased long-term aftermarket consumption.
- Expansion of Pre-Owned Vehicle Market
India’s used-car market is expected to grow at 17.5% CAGR through FY2030. Higher ownership turnover significantly boosts:
- Parts replacement
- Refurbishment
- Accessories
- Diagnostics
- Service center activity
This sector has become a major aftermarket catalyst.
Market Restraints
Strict Regulatory Environment
Compliance with AIS, BIS standards, emission norms, and safety regulations creates barriers.
Opportunities: Technological Advancements Create New Avenues
Emerging automotive technologies offer multi-billion-dollar opportunities for aftermarket players.
- Electric Vehicles (EVs)
Aftermarket opportunities include:
- EV charging infrastructure
- Battery management systems
- Retrofitting kits
- Thermal management systems
- ADAS & Safety Systems
Services in demand:
- Calibration of sensors and cameras
- Installation of crash avoidance systems
- Software updates and reprogramming
- Connected Vehicle Ecosystem
Opportunities:
- Predictive maintenance
- Telematics dashboards
- GPS-based fleet optimization
- Remote diagnostics
- 3D Printing & Materials Innovation
Allows:
- Customized components
- Quick prototyping
- Cost-effective low-volume parts manufacturing
These advancements will shape the next phase of aftermarket expansion.
Segment Analysis
By Replacement Parts: Tires Lead the Market
The tire segment dominated the market in 2023 due to:
- High frequency of replacement cycles
- Growing consumer preference for premium, fuel-efficient tires
- Rise in commercial & personal mobility
- Expansion of two-wheeler and passenger vehicle base
India’s tire ecosystem is highly competitive, with brands focusing on technology, distribution optimization, and performance-focused variants.
To know the most attractive segments, click here for a free sample of the report: https://www.maximizemarketresearch.com/request-sample/29939/
Regional Insights
- Northern India – Market Leader
Includes Delhi, Uttar Pradesh, Haryana, Punjab.
Drivers:
- Highest vehicle density
- Strong demand across passenger, commercial & agricultural vehicles
- Large network of service centers and retailers
- Western India – Fast-Growing Market
Includes Maharashtra, Gujarat, Rajasthan.
- Mumbai and Pune fuel premium aftermarket demand
- Gujarat’s industrial belts boost commercial vehicle parts consumption
- Presence of automotive clusters strengthens supply chains
- Southern & Eastern India – Emerging Potential
- Rising urbanization
- Growing disposable incomes
- Expanding road connectivity
- Increased EV penetration
Each region shows unique aftermarket behavior, requiring tailored distribution and service strategies.
Market Segmentation
By Replacement Parts
- Tires
- Batteries
- Brake Parts
- Filters
- Body Parts
- Lighting & Electronics
- Wheels
- Exhaust Components
- Turbochargers
- Others
By Certification
- Genuine Parts
- Certified Parts
- Uncertified Parts
By Service Channel
- DIY (Do It Yourself)
- DIFM (Do It For Me)
- OE Service Centers
By Distribution Channel
- OEMs
- Repair Shops
- Wholesalers & Distributors
Key Players in the India Automotive Aftermarket
- Bosch India
- TVS Group
- Mahindra & Mahindra
- Exide Industries
- Tata Motors
- Minda Industries
- Amara Raja Batteries
- Ashok Leyland
- Hero MotoCorp
- Maruti Suzuki
- Motherson Sumi Systems
- JK Tyre & Industries
- Lumax Industries
- Sundram Fasteners
- WABCO India
- Gabriel India
- Ceat Ltd.
- SKF India
- MRF Limited
- Apollo Tyres
These companies lead the market through innovation, extensive distribution networks, and strong brand value.
Conclusion
The India Automotive Aftermarket is entering a high-growth phase driven by:
- Rising vehicle ownership
- Digitalization of distribution
- Technological innovation
- Expansion of EVs and connected vehicles
- Growth in rural and pre-owned markets
While regulatory challenges and industry fragmentation persist, the shift toward smarter, tech-enabled aftermarket solutions presents strong opportunities. Companies that invest in digital channels, predictive diagnostics, EV-ready services, and value-driven customer experiences will dominate the next decade of India’s aftermarket landscape.
