How PACE Is Redefining India’s Rs 9.38 Lakh Crore Automotive Aftermarket
India’s automotive aftermarket is at a defining crossroads, one where technology, electrification, and consumer experience converge to reshape how we buy, service, and interact with vehicles. What was once a parts-and-repairs economy is rapidly evolving into a technology-driven, customer-centric ecosystem powered by PACE (Personalised, Autonomous, Connected, and Electrified parts and services.An Industry of Scale and Resilience
According to the India Brand Equity Foundation (IBEF), India’s auto components industry, including the aftermarket, was valued atRs 9.38 lakh crore in FY 2023-24, driven by rising vehicle population, aging fleet, and improved road connectivity. The aftermarket alone is estimated at aroundRs 93,800 crore (US$11.3 billion) in 2024 as per GMI Research, reflecting the growing dependence on quality replacement parts and trusted service networks. India today has over 260 million two-wheelers and nearly 50 million cars on its roads, creating one of the largest active serviceable vehicle parcs globally.
The EV Aftermarket: The Next Growth Curve
The next big disruption in this landscape is the EV aftermarket. As per IMARC Group, the Indian EV aftermarket was valued at US $2.70 million (≈Rs 22 crore) in 2024 and is projected to grow at a 20.6 per cent CAGR, reaching US $14.38 million (≈Rs 119 crore) by 2033. This nascent segment includes new categories like battery diagnostics, thermal management systems, power electronics, regenerative braking parts, and charging accessories. As India crossed 2 million EV sales in FY 2024–25, the foundation for a full-fledged EV aftermarket has been laid.
PACE: The New DNA of the Aftermarket
1. Personalised: The aftermarket is becoming hyper-personalised through predictive analytics and digital profiles. Customer purchase and driving data now guide personalised maintenance reminders, targeted offers, and curated product recommendations.
2. Autonomous: With ADAS, sensor-driven safety systems, and self-diagnosing ECUs, vehicles can now “self-report” faults and order parts through integrated service networks. For the aftermarket, this means new software-plus-hardware sales opportunities.
3. Connected: Telematics, IoT devices, and vehicle-to-cloud interfaces are connecting customers, garages, and parts suppliers in real time. Connected diagnostics, remote updates, and predictive maintenance will redefine how workshops operate.
4. Electrified: EV penetration is transforming the part mix — from engine-centric spares to battery modules, converters, cooling systems, and smart lighting. Electrification will demand new capabilities in thermal management, insulation, and electronic safety systems.
Emerging Buzzwords and Strategic Imperatives
1. Digital Twin Workshops: Real-time virtual replicas of garages for inventory, service tracking, and technician support.
2. Circular Economy & Remanufacturing: Battery recycling, component refurbishing, and second-life markets will be critical sustainability levers.
3. Omnichannel Retail: Integrated digital + physical retail models where spares can be booked online, serviced offline, and tracked via app.
4. Data-Driven Loyalty: Aftermarket brands will build CRM ecosystems to convert one-time buyers into lifetime customers.
5. Skill 4.0: Upskilling technicians in EV systems, IoT diagnostics, and ADAS calibration will be the most vital investment for the decade ahead.
Conclusion: From Parts to Smart Mobility
India’s automotive aftermarket, already worth Rs 9.38 lakh crore, is not just about replacement; it’s about reinvention. The next decade belongs to players who embrace PACE, making products Personalised, Autonomous, Connected, and Electrified. As mobility becomes intelligent, the aftermarket becomes indispensable.
<hr>Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the publication.
<hr>
Pages:
[1]