As per MRFR analysis, India Automotive Aftermarket Market Size was estimated at 19.81 (USD Billion) in 2023. India Automotive Aftermarket Market Industry is expected to grow from 20.6 (USD Billion) in 2024 to 30.99 (USD Billion) by 2035. India Automotive Aftermarket Market CAGR (growth rate) is expected to be around 3.782% during the forecast period (2025 - 2035).
The automotive aftermarket in India is experiencing significant growth driven by various market drivers. The increasing number of vehicles on the road, combined with a rise in disposable income, is pushing demand for spare parts and services. Additionally, the focus on vehicle maintenance and the shift towards a DIY culture among consumers are enhancing the aftermarket segment. The rise of e-commerce is another key factor, as online platforms provide easy access to various automotive parts, contributing to a more competitive landscape and promoting convenience for consumers. There are substantial opportunities to be explored in India automotive aftermarket.
Due to the government's focus on improving road systems and promoting electric vehicles, there is expected growth in the parts and services sector designed for electric vehicles. Further, the growing concern about vehicle maintenance and performance enhancement among consumers in India provides an opportunity to serve a more educated market. Recent trends suggest that digitalization is taking a toll on the aftermarket industry in India. The use of mobile applications for service booking and tracking is becoming more common, which greatly increases the customers' chances of receiving quality services and products.
The rise of social media and online reviews is influencing consumer choices, pushing sellers to maintain high service standards to build a good reputation. Overall, India automotive aftermarket is poised for growth, driven by evolving consumer behavior, government initiatives, and the technological shift impacting the market landscape.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
In recent years, vehicle ownership in India has been on the rise, significantly contributing to the growth of India Automotive Aftermarket Market Industry. A study by the Ministry of Road Transport and Highways indicates that India had over 250 million registered vehicles as of 2021, with a consistent annual growth rate. This surge in vehicle numbers implies a greater demand for aftermarket services such as maintenance, repairs, and replacement parts.Established organizations such as the Society of Indian Automobile Manufacturers (SIAM) have noted that the growth in the automotive sector, particularly for passenger vehicles, has increased the necessity for aftermarket services.
With India automotive sector expecting further growth, the burgeoning vehicle ownership will drive the aftermarket growth as consumers will seek to maintain their vehicles for longevity and efficiency. As vehicle finance options become more accessible, ownership is predicted to further expand, leading to increasing opportunities in India Automotive Aftermarket Market Industry.
There is an increasing awareness among Indian consumers regarding the importance of regular vehicle maintenance and the availability of aftermarket products and services. The Automotive Skills Development Council (ASDC) has been actively promoting initiatives aimed at educating vehicle owners about the benefits of regular maintenance. This shift in consumer behavior is supported by growing access to digital platforms, enabling owners to better understand the implications of neglecting vehicle upkeep.
As a result, the demand for spare parts, accessories, and servicing in India Automotive Aftermarket Market Industry has risen. Furthermore, studies show that regular maintenance can save vehicle owners up to 20% in repair costs over time, highlighting the financial benefits of staying proactive with vehicle care. This driver is critical as higher maintenance awareness directly correlates with rising aftermarket growth.
India government's increasing focus on vehicle safety standards is becoming a significant driver for India Automotive Aftermarket Market Industry. With the introduction of stricter safety norms and regulations, such as the Bharat New Vehicle Safety Assessment Program (BNVSAP), vehicle manufacturers are now under pressure to enhance the safety features of their automobiles.
These regulations necessitate regular updates and servicing of vehicles, encouraging owners to purchase aftermarket parts to comply with safety standards.Organizations such as the Automotive Research Association of India (ARAI) play a vital role in setting these standards, leading to more opportunities for the aftermarket sector. As the BNVSAP and other associated guidelines take full effect, the demand for quality aftermarket solutions will continue to grow, thus positively impacting the market growth.
The Channels segment within India Automotive Aftermarket Market is a vital component that encompasses various avenues through which automotive repair and maintenance services are delivered to consumers. As India's automotive landscape continues to grow, the role of authorized repair centers and independent repair workshops becomes increasingly significant. Authorized repair channels typically include service centers affiliated with vehicle manufacturers, providing consumers with OEM parts and manufacturer-specific service protocols, which instills confidence in quality and reliability among vehicle owners. These centers often leverage advanced technology and skilled technicians trained by the manufacturers, thereby ensuring adherence to stringent quality standards. On the other hand, independent repair shops cater to a different segment of the market.
They often provide a wider range of services at competitive prices, which appeals to budget-conscious vehicle owners. These workshops typically focus on flexibility and personalized service, allowing them to establish strong connections with local communities. As vehicle owners seek cost-effective solutions without compromising on service quality, independent repair has become a popular choice, contributing substantially to the overall market dynamics. Trends in the automotive aftermarket indicate a growing inclination towards independent repair, as consumers seek more affordable options for maintenance while still prioritizing reliable service. One key growth driver for this segment is the increasing average age of vehicles on the road in India, leading to a higher demand for repairs and replacement parts.
Moreover, the evolving digital landscape has enabled independent workshops to enhance visibility and access to customers through digital marketing platforms, creating opportunities for growth. Challenges in the channels segment include the ongoing competition between authorized and independent repair centers, which may dilute market share for both types of operators. Additionally, issues surrounding the availability and authenticity of spare parts present ongoing obstacles for independent repair channels. However, opportunities for innovation and collaboration are abundant, especially as technology advances in vehicle diagnostics and parts procurement. Therefore, fostering a balanced ecosystem between authorized and independent repair options is crucial for the sustainable growth of India Automotive Aftermarket Market while catering to the diverse needs and preferences of Indian consumers.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Vehicle Age segment within India Automotive Aftermarket Market is a key area of focus that reflects the changing dynamics of vehicle ownership in the country. The growing vehicle population, alongside increasing disposable incomes and urbanization, has led to a notable shift towards newer vehicles, particularly those aged 0-4 years. This group typically receives greater attention for aftermarket services, as vehicle warranties and technological advancements drive consumers to maintain their vehicles in optimal condition.
The 4-8 years category plays a crucial role as well, as vehicles in this age bracket often require specialized aftermarket services and parts due to wear and tear, thereby creating significant demand for repairs and replacements.Meanwhile, the above 8 years category tends to dominate in the context of cost-effective aftermarket solutions, catering to a large pool of budget-conscious consumers looking to maximize the lifespan of their vehicles. Overall, this segmentation reveals a diverse market landscape driven by customer preferences, vehicle conditions, and economic factors, with each age category presenting unique opportunities and challenges for industry players.
The Vehicle Type segment of India Automotive Aftermarket Market showcases a distinct separation between Passenger vehicles and Commercial vehicles, each playing a pivotal role in the overall automotive landscape. Passenger vehicles account for a significant portion of the market, driven by the growing middle class in India, increased disposable income, and changing lifestyle preferences, leading to heightened demand for personal transportation. Conversely, the Commercial vehicle segment is essential for the nation’s economy, supporting logistics and transportation sectors, contributing to urban development, and sustaining industrial growth.
The government's initiatives to improve infrastructure and logistics through various policies further bolster the Commercial vehicle segment, showcasing its importance in facilitating trade and commerce. As consumer behavior evolves, the focus on maintenance and aftermarket services continues to rise in both segments. India Automotive Aftermarket Market segmentation reflects a balanced ecosystem where both Passenger and Commercial vehicles hold vital positions, ensuring comprehensive service offerings, availability of parts, and technological advancements to meet preparedness for the future mobility landscape.
India Automotive Aftermarket Market exhibits a diverse array of offerings under the Service Type segment, primarily categorizing into Parts and Services. This segmentation is crucial as Parts typically include components essential for repairing and maintaining vehicles, ensuring their longevity and performance efficiency. With India being one of the largest automotive markets globally, this segment attracts substantial consumer interest and contributes significantly to the overall market dynamics.
In parallel, Services encompass a variety of maintenance and repair activities, including periodic servicing, accident repairs, and specialized services like engine tuning and diagnostics. This aspect is vital due to the increasing number of vehicles on the roads and growing awareness about vehicle upkeep among consumers. Recent market trends also highlight a shift toward more digitalized service provision, including online booking systems and mobile apps for hassle-free access to automotive services. Additionally, as electric vehicles gain traction, there emerges a potential market for specialized maintenance services tailored for this evolving automotive landscape in India.
Overall, the segmentation of India Automotive Aftermarket Market under Service Type underlines a robust growth trajectory, driven by consumer demand and technological advancements in vehicle maintenance and repair.
India Automotive Aftermarket Market is characterized by a dynamic landscape with a range of players competing across various segments such as parts, accessories, and service offerings. This market is deeply influenced by the increasing vehicle population, rising disposable income, and growing consumer preferences for vehicle customization and maintenance. A mix of established players and new entrants mark the competition, each striving to capture a larger share of the market through innovative products and enhanced service experiences. With the trend of digitalization penetrating the automotive sector, companies are leveraging technology to offer better customer engagement and streamline repair processes, making it essential for businesses to adapt quickly to changing consumer behaviors and industry standards.
Moreover, regulatory changes and environmental concerns are pushing companies to invest in more sustainable solutions, which adds another layer of competition focused on innovation and compliance. Amara Raja Batteries has carved out a significant presence in India Automotive Aftermarket Market with its robust portfolio, particularly in the lead-acid battery segment. The company boasts strong brand recognition and trustworthiness among consumers due to its quality products that cater to both two-wheeler and four-wheeler segments. Amara Raja Batteries focuses on leveraging technology to enhance the performance and longevity of its batteries, which resonates well with the demands of auto maintenance and customer satisfaction.
Its strategic collaborations with various OEMs further strengthen its market position, allowing it to ensure a steady supply of products while also expanding its reach across different regions in India. The company has adopted a customer-centric approach, investing in service networks and providing extensive support, thereby solidifying its standing as a leader in the automotive battery space. Mahindra and Mahindra play a pivotal role in India Automotive Aftermarket Market, particularly in commercial and passenger vehicle sectors through its diverse range of automotive components and aftermarket services.
This company is recognized for offering a comprehensive range of products, including genuine parts, accessories, and service solutions aimed at improving vehicle functionality and customer experience. Mahindra and Mahindra's strengths lie in its vast distribution network, backed by a strong brand reputation and deep understanding of the local market. The company has been actively involved in strategic mergers and acquisitions, enhancing its capabilities and expanding its portfolio to better cater to evolving automotive demands.
Its investment in R&D has led to innovative solutions that align with customer expectations and regulatory standards, ensuring that Mahindra and Mahindra remains competitive in this rapidly growing sector. With a clear focus on quality and customer service, Mahindra and Mahindra are well-positioned to capitalize on the booming automotive aftermarket in India, strengthening its market leadership.
Recent developments in India Automotive Aftermarket Market have been shaped by significant shifts in consumer preferences, technological advancements, and strategic maneuvers by prominent players. Companies like MRF, Apollo Tyres, and Bosch have been actively innovating to enhance tire performance and automotive components. The market has seen a notable increase in battery technologies, with Amara Raja Batteries and Exide Industries investing in advanced lead-acid batteries and lithium-ion technologies to cater to the growing electric vehicle segment.
Current affairs within the sector also reflect an upward trend, driven by a recovering economy post-COVID-19 and rising vehicle ownership in India, which is projected to boost the aftermarket sector substantially. Noteworthy, in August 2023, Bharat Forge announced its strategic collaboration with Hitachi Astemo to enhance R&D efforts in automotive components, showcasing a trend towards consolidating resources amongst major players. Moreover, Tata Motors has been ramping up its production and service capabilities to meet increasing service demands in the aftermarket segment. The growth trajectory in the valuation of enterprises within this market is indicative of a broader trend toward modernization and sustainable practices in India’s automotive landscape.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 19.81 (USD Billion) |
| MARKET SIZE 2024 | 20.6 (USD Billion) |
| MARKET SIZE 2035 | 30.99 (USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 3.782% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Amara Raja Batteries, Mahindra and Mahindra, Bharat Forge, JTEKT India, Schaeffler India, Bridgestone India, Exide Industries, TVS Group, Hitachi Astemo, MRF, Apollo Tyres, Continental India, Tata Motors, Hero MotoCorp, Bosch |
| SEGMENTS COVERED | Channels, Vehicle Age, Vehicle Type, Service Type |
| KEY MARKET OPPORTUNITIES | Electric vehicle servicing demand, Digitalization of repair services, Growth in spare parts e-commerce, Increased focus on vehicle safety, Expansion of skilled labor training programs. |
| KEY MARKET DYNAMICS | growing vehicle population, increasing vehicle age, rise in online sales, consumer preference for quality parts, expansion of service networks |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ) :
The expected market size of the India Automotive Aftermarket Market in 2024 is valued at 20.6 USD Billion.
By 2035, the market size of the India Automotive Aftermarket Market is expected to reach 30.99 USD Billion.
The expected CAGR for the India Automotive Aftermarket Market from 2025 to 2035 is 3.782 %.
In 2024, the Authorized repair channel is valued at 8.71 USD Billion while the Independent repair channel is valued at 11.89 USD Billion.
By 2035, the Authorized repair channel is expected to be valued at 13.32 USD Billion and the Independent repair channel at 17.67 USD Billion.
Key players in the India Automotive Aftermarket Market include Amara Raja Batteries, Mahindra and Mahindra, Bharat Forge, and Bosch among others.
Growth drivers for the India Automotive Aftermarket Market include increasing vehicle sales and the rising preference for vehicle maintenance.
Challenges faced by the India Automotive Aftermarket Market include competition from unauthorized service centers and economic fluctuations.
Key applications of the India Automotive Aftermarket Market include vehicle repairs, maintenance services, and spare parts sales.
Global market trends impact the India Automotive Aftermarket Market by affecting supply chains and influencing consumer preferences.
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Senior Research Analyst She has over 5 years of rich experience, in market research and consulting providing valuable market insights to client. hands on expertise in management consulting, and extensive knowledge in domain including ict, automotive & transportation and aerospace & defense. she is skilled in go-to market strategy, industry analysis, market sizing, in depth company profiling, competitive intelligence & benchmarking and value chain amongst others.
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