Auto Components

Growing and Aging Vehicle Parc to Drive Sustained Growth in Auto Aftermarket

Thematic Report 04 Mar 2026

India’s automotive aftermarket is growing steadily as increased number of vehicles stay on the road longer and clock higher usage across urban and rural India. Replacement demand is mainly shaped by electronics, safety features, and smarter maintenance, supported by organised workshops and digital platforms. Despite rising dependence on import for electronics parts, the expanding and ageing vehicle base keeps the aftermarket on track to reach revenues of around Rs. 1,55,000 crore by FY2030.

  • India’s automotive aftermarket revenues stood at approximately Rs. 99,500 crore in FY2025. The segment has grown steadily at a CAGR of 8% over the past 10 years ending FY2025. The growth has been driven by rising personal and commercial vehicle usage, and a rapidly expanding vehicle population. Increasing urbanisation and daily commuting have further intensified utilisation, accelerating replacement cycles for key components.
  • The demand for aftermarket components is largely comprised of drive transmission and steering, electricals, suspension, and braking components, reflecting the replacement-driven nature of these components.

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