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The Growth of India’s Automotive Aftermarket Industry

The automotive aftermarket is often viewed through the simple lens of replacement and repair. But that definition is becoming too narrow for the Indian market.

Today, vehicle owners are spending on maintenance, upgrades, styling, safety, convenience, audio, detailing and technology alongside essential replacement components. For businesses, that means the aftermarket is becoming a broader commercial ecosystem rather than a single product category.

The numbers reflect this momentum. According to the Automotive Component Manufacturers Association of India (ACMA), India’s domestic automotive component aftermarket reached ₹99,498 crore in FY2024–25, growing 6% year on year. In the first half of FY2025–26, the segment grew another 9% to ₹53,160 crore, making it one of the faster-growing parts of the domestic component industry. ACMA attributed this performance to a growing vehicle population, greater formalisation of repair and maintenance and deeper penetration of organised distribution channels.

That growth points to something important: the opportunity is expanding not only because more vehicles are being sold, but because more vehicles are staying in use and creating ongoing demand.

A Larger Vehicle Base Means a Larger Opportunity

India’s growing vehicle parc is one of the strongest long-term drivers of the automotive aftermarket.

ACMA estimates that India’s total vehicle parc could rise from roughly 333 million vehicles in 2024 to around 430–435 million by 2030. Its research also projects the domestic auto-component aftermarket to reach approximately US$16 billion by 2030.

Every vehicle added to the road represents future demand for maintenance, repair and replacement. As vehicles age, that demand becomes even more relevant.

At the same time, India’s new-vehicle market continues to expand. FY2025–26 saw record sales across major vehicle categories, including 46.4 lakh passenger vehicles and 2.17 crore two-wheelers, according to figures reported from SIAM. A larger installed base today creates a larger pool of vehicles that will require parts, services and upgrades over the years ahead. 

For aftermarket businesses, the opportunity is therefore not tied to a single sales cycle. It can extend across the entire ownership journey.

Used Vehicles Are Adding Another Layer of Demand

The growth of the pre-owned vehicle market is another important driver.

India’s used-car market reached around 5.9 million units in FY2025, according to data cited by IBEF, and is projected to reach approximately 9.5 million units by 2030. The market is also becoming more organised, with consumers increasingly looking for transparency, certification and dependable service.

This creates opportunities throughout the post-purchase ecosystem.

A used vehicle often brings immediate needs: inspection, servicing, replacement components, refurbishment, detailing and upgrades. For suppliers and service businesses, every increase in organised used-vehicle transactions can create new demand further down the value chain.

It also creates room for businesses that can offer solutions beyond basic repair, from premium replacement components to appearance, comfort, technology and performance upgrades.

Formalisation Is Changing How Business Gets Done

One of the most significant developments in the automotive aftermarket is the gradual shift from fragmented, informal networks towards more organised channels.

ACMA has identified formalisation of repair and maintenance, organised distribution and e-commerce penetration among the key factors supporting aftermarket growth. 

For businesses, formalisation brings both opportunity and pressure.

Customers increasingly expect product consistency, transparent pricing, reliable availability, technical information and professional service. Distributors and workshops are also looking for suppliers that can support them with dependable supply, training and after-sales service.

This favours companies that can combine product quality with a stronger overall business proposition.

The opportunity, in other words, is not simply to sell more. It is to make the buying, distribution and service experience better.

Digital Is Making the Aftermarket Easier to Reach

The way automotive products are discovered and purchased is changing too.

E-commerce and online marketplaces are becoming a more visible part of India’s aftermarket ecosystem, while organised service platforms are making it easier for consumers to compare products and access professional services. ACMA has specifically highlighted increasing e-commerce penetration and direct-to-consumer models as growth drivers. 

This shift can help brands reach customers beyond traditional geographic boundaries.

For manufacturers and distributors, digital channels also create more opportunities to understand demand, identify fast-moving products and reach niche customer groups. But digital visibility alone is not enough. Product reliability, availability, brand trust and fulfilment still determine whether that visibility converts into repeat business.

The Customer Is Looking for More Than a Fix

Another important change is the rise of the more informed and aspirational vehicle owner.

Indian consumers are increasingly interested not just in keeping a vehicle running, but in making it more personal, capable and enjoyable. The growing presence of SUVs and premium vehicles, for example, is influencing demand for higher-value products and services. ACMA has also noted a shift in market preferences towards larger and more powerful vehicles.

This opens opportunities across accessories, styling, audio, performance, detailing, electronics and convenience-focused upgrades.

For B2B companies, the message is clear: understanding the customer is becoming just as important as understanding the vehicle.

A product that solves a practical need, improves the ownership experience or adds visible value has the potential to stand out in an increasingly competitive market.

Technology Will Shape the Next Phase

The automotive aftermarket is also moving closer to the technology side of mobility.

Advanced electronics, connected features, driver-assistance systems, diagnostics and EV-related technologies are gradually creating new product and service requirements. In H1 FY2025–26, EV-related components accounted for 4.6% of domestic OEM supplies, according to ACMA. While conventional internal-combustion vehicles will remain an important part of the installed base for years, businesses preparing for new mobility can position themselves for the changing vehicle mix. 

For suppliers, this means investing in technical capability, product development and skills will matter increasingly.

The businesses that understand where vehicle technology is heading, while continuing to serve the existing vehicle population, will have a broader opportunity to grow.

What the Growth Means for Businesses

The growth of India’s automotive aftermarket is creating opportunities across several layers of the value chain.

Manufacturers can explore growing demand for specialised and higher-value products. Distributors can expand into new territories and categories. Workshops can improve capability with better tools, equipment and diagnostics. Accessory and modification businesses can respond to increasing personalisation. Technology companies can develop solutions for a more connected vehicle environment.

But growth will not automatically translate into success.

Competition is also becoming sharper. Customers have more options. Digital channels make comparison easier. Product quality and authenticity matter more. And businesses have to keep pace with changing vehicle technology and customer expectations.

That makes visibility, innovation, partnerships and market intelligence increasingly important.

The Road Ahead

India’s automotive aftermarket industry is moving from a largely replacement-driven market towards a broader, more organised and increasingly technology-led ecosystem.

The fundamentals are strong: a growing vehicle park, rising used-vehicle activity, expanding organised service networks, greater digital penetration and increasing consumer interest in upgrades and premium products. The domestic aftermarket already grew 9% in H1 FY2025–26, while longer-term industry projections point towards continued expansion through 2030.

For B2B businesses, the opportunity lies in understanding where that growth is coming from, and being ready to serve it.

The next phase of India’s automotive aftermarket will not be defined by one product, one technology or one customer group. It will be shaped by businesses that can spot changing demand, build stronger market connections and deliver solutions that keep pace with the way India drives, maintains and upgrades its vehicles.

The market is growing. The bigger question is: how will your business grow with it?