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.