Key factors shaping India’s automotive aftermarket: From lifestyle to utility

The Indian automotive aftermarket industry is experiencing rapid growth alongside the booming passenger vehicle market in the country. With the Indian passenger car market valued at $65.1 billion in 2023 and expected to reach $102.11 billion by 2028, the aftermarket sector is also expanding at a significant pace. According to the Global Automotive Aftermarket Research Report by ACMA and EY, the automotive aftermarket in India is projected to reach around $14 billion by 2028, with export opportunities exceeding $35 billion.

The growth in the automotive aftermarket can be attributed to the evolving needs and aspirations of Indian consumers. With increased exposure to global products, higher disposable incomes, and a desire for personalized vehicles, car buyers are turning to aftermarket solutions to enhance their vehicles. The aftermarket offers a cost-effective way to upgrade or accessorize vehicles with advanced technology features that may be too expensive when purchased directly from OEMs.

One of the key factors driving growth in the aftermarket segment is the rising awareness of vehicular safety among consumers. Features like dashcams, 360-degree cameras, and TPMS have become popular aftermarket accessories as they enhance safety and provide convenience to drivers. The availability of a wide range of aftermarket products online has also contributed to the segment’s growth.

In response to the increased demand for safety and hygiene products, aftermarket accessories like in-car air purifiers and vacuum cleaners have seen a surge in sales. The COVID-19 pandemic has heightened awareness about in-car hygiene, leading to a growing market for products that improve air quality inside vehicles.

Moreover, comfort and convenience are major drivers for aftermarket sales, with car owners seeking upgrades like improved lighting systems and touchscreen infotainment systems. These aftermarket products not only enhance the driving experience but also offer customization options at a more affordable price compared to OEM offerings.

Industry experts predict continued growth in the Indian automotive aftermarket sector, driven by factors such as increasing vehicle ownership, consumer demand for customization, and technological advancements. The availability of locally manufactured products, supported by the government’s Make-in-India initiative, is expected to further boost growth in the aftermarket industry.

Overall, the Indian automotive aftermarket is poised for significant expansion in the coming years, aligning with the country’s ambitious goals of becoming a $5 trillion economy. With a focus on safety, convenience, and customization, the aftermarket sector is set to play a crucial role in meeting the evolving needs of Indian car buyers.

Published Date: 20 May 2024, 06:15 AM IST