Indian Auto Aftermarket Set To Hit Rs 1.6 Lakh Crore By 2030: Industry Expert

Representative Image (Source- Meta AI)

New Delhi: India is the world's third-largest automobile market, which is also driving rapid growth in the auto component aftermarket. According to the Automotive Component Manufacturers Association of India (ACMA), the aftermarket grew by 6% to Rs 99,948 crore (USD 11.8 billion) in FY 2024-25, driven by an expanding used vehicle base, formalisation of the repair ecosystem, and stronger rural demand supported by e-commerce penetration.

While the overall turnover of the automotive component industry, including the aftermarket, stood at Rs. 6.73 lakh crore (USD 80.2 billion), registering a year-on-year growth of 9.6%, as per the official data shared by ACMA, which further indicated that the industry grew at a CAGR of 14% from FY20 to FY25, nearly doubling in size over the past five-year period.

Vishal Kaul, President and Business Head - Aftermarket, UNO Minda, said that the current Indian Auto Component Aftermarket size is estimated at around Rs 1,00,000 crore and "by 2030, it is expected to reach Rs 1,55,000–Rs 1,60,000 crore." He also highlighted that the modernisation of vehicles triggered demand in specific areas of the Auto Component Aftermarket.

He said, "Modern vehicles come equipped with more electronics, sensors, and intelligent interfaces. As a result, there’s growing demand for advanced infotainment systems (e.g., Android-based screens), LED lighting, and upgraded indicators, convenience features like handlebar switches with built-in phone charging, and safety accessories like DVRs and ADAS-related products."

Vinnie Mehta, Director General, ACMA, recently said, "With OEM sales, exports and the aftermarket segments all growing positively, the Indian auto component industry clocked a turnover of Rs. 6.73 lakh crore (USD 80.2 billion) in FY25, reflecting a growth of 9.6% over the previous fiscal." 

"The Aftermarket, estimated at Rs. 99,948 crore, also witnessed a growth of 6 percent. Component supplies to OEMs in the domestic market grew by 10 percent to Rs 5.7 lakh crore", he added.

Providing further insights on the Indian Auto Component Aftermarket, Kaul said, "Top aftermarket demands fall into four key categories: Consumables (items with regular replacement cycles like filters), breakables (parts prone to damage such as mirrors, lights, etc), upgrades (products like LED indicators, Android head units, and upgraded horns) and aesthetic enhancements (alloy wheels, interior enhancements, and stylized lighting).