India’s automotive aftermarket sector is experiencing steady growth, driven by advancements in technology, shifting consumer preferences, and proactive government initiatives. The market is projected to touch nearly USD 14 billion by 2028. When global business owners explore new areas for expansion, they notice that the Indian market is huge and increasingly integrated into global supply chains.

However, due to intense competition, businesses increasingly depend on automotive aftermarket consulting services to gain accurate insights and develop innovative strategies for success.

Getting to know the evolving landscape of India’s Automotive market

Even after the pandemic, the automotive sector remains a vital part of India’s manufacturing landscape and continues to draw strong interest from global investors.

That being said, passenger vehicle sales in FY25 increased by 2.6% year-over-year, reaching 4.34 million units. Remarkably, growth occurred in this manner, as demand for vehicles is already very high in urban areas.

Moreover, SUVs now make up over 60% of new utility vehicle sales, highlighting a noticeable trend among consumers who are leaning towards larger, more feature-packed vehicles.

These trends underscore the importance of strategic planning and expert guidance—such as automotive aftermarket consulting—for businesses aiming to succeed in today’s rapidly evolving market.

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Key market drivers and growth projections of the Indian Automotive Industry

India’s automotive industry is poised for remarkable growth, with estimates indicating it could reach USD 300 billion by 2026. Additionally, it is projected to emerge as the world’s 3rd-largest electric vehicle market by the end of 2025.

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Here, the potential key growth drivers include:

●   Rising middle-class income and rapid urbanization

●   Several government policies like the Production-Linked Incentive (PLI) scheme and Bharat NCAP safety standards

●   A surge in rural market growth, with rural retail expanding by 15% in Q3FY25 versus 2.5% in urban areas.

Major trends driving the growth of India’s Automotive Aftermarket Sector

To thrive amid global challenges, industries must constantly adapt and innovate, and India’s automotive aftermarket is no exception. Despite setbacks like the COVID-19 slowdown and supply chain disruptions, the sector has shown strong growth by embracing new technologies and evolving with consumer preferences.

This agility has paved the way for several key trends that are set to shape the industry in the coming years. Take a look:

Impact of EVs and other advanced technologies

The swift rise of electric vehicles is gradually transforming the automotive scene. Factors like better long-term affordability, advancements in battery technology, and strict zero-emission regulations are pushing EV adoption forward.

At the Bharat Mobility Global Expo 2025, top manufacturers unveiled new battery electric vehicles (BEVs), marking a significant move towards sustainable transportation.

Here are some key trends to look out for:

●   Government incentives and lower interest rates are making it easier to buy EVs

●   Manufacturers concentrating on software-driven, connected, and self-driving vehicles

●   Growing consumer interest in cutting-edge features such as advanced driver-assistance systems (ADAS), connected infotainment, and improved safety measures

Digitalization and Data-driven value creation

Digital transformation is shaking up the automotive aftermarket in a big way. Firms are making use of data analytics, IoT, and AI to run their operations more efficiently, give customers a better experience, and develop more value.

These are the main trends driving digitalization now:

●   Predictive maintenance and remote diagnostics

●   E-commerce platforms for aftermarket parts and services

●   Real-time supply chain visibility and inventory optimization

Supply Chain Consulting and Optimization Strategies

When it comes to navigating the complexities of India’s vast and fragmented market, automotive supply chain consulting is essential. Firms that specialize in this area assist businesses by:

●   Streamlining logistics and warehousing

●   Localizing sourcing to reduce risks from global disruptions

●   Implementing a just-in-time inventory and demand forecasting system

Unveiling the role of Automotive Aftermarket Consulting in India

Automotive Industry Consulting and Strategy firms deliver specialized expertise, comprehensive market insights, and strategic guidance to top investors across the globe. These firms support their clients in:

●   Strategically evaluate the challenges of entering new markets and understand regulatory requirements

●   Spot high-growth areas and effective distribution channels

●   Create customized go-to-market strategies and forge partnerships

Navigating market complexity and Regulatory changes

The new emissions standards, like the ongoing CAFE II norms, are pushing automakers to keep their fleet's average CO₂ emissions below 113.1 grams per kilometer until March 2027, which is steering the industry towards cleaner technologies.

Keeping up with these updates means staying on top of policy changes, actively engaging with regulatory bodies and industry groups, and strategically adjusting product lines and business models. Interestingly, GST collections for March 2025 jumped by 9.9%, exceeding ₹1.96 trillion, which highlights the dynamic nature of compliance in India’s automotive sector.

Partnering with OEMs, Distributors, and Service Providers for Integrated Support

Success in the Indian aftermarket depends on strong collaboration throughout the entire value chain. Top automotive & EV consulting firms in India play a crucial role in fostering partnerships by:

●   Bringing together global investors with local OEMs, distributors, and service networks

●   Creating joint ventures and facilitating technology transfer agreements

●   Developing resilient, customer-focused service ecosystems

Strategic opportunities for Automotive Investors

Automotive aftermarket strategy consulting firms typically shape strategies for entering and expanding in the market. These firms can help automobile investors discover plenty of opportunities in:

●   Component manufacturing - this specific sector is set to achieve a cumulative market size of USD 145 billion by 2030, with exports soaring from USD 20 billion to USD 60 billion.

●   EV charging infrastructure and battery recycling

●   Digital aftermarket platforms for parts, diagnostics, and services

●   Teaming up with local OEMs and distributors to tap into a variety of customer segments.

Growth, Export potential, and Global integration

By 2030, India’s share of the global automotive value chain is expected to increase from 3% to 8%, accompanied by a projected trade surplus of USD 25 billion. The main markets for exports will be Africa, the Middle East, Asia, and Latin America.

Now, the usual question will be what’s fueling this export growth?

Well, these are some significant contributors:

●   Competitive manufacturing costs paired with a skilled workforce

●   A rising global appetite for Indian-made parts and vehicles

●   Strategic collaborations with international OEMs and tier-1 car component suppliers

Tecnova: Your Strategic Partner in India’s Automotive Aftermarket

Focusing on the Indian market, Tecnova is helping worldwide business owners with complete Aftermarket strategy consulting solutions to succeed in the long run. Owing to having a strong base of industry experience, a solid national presence, and a history in automotive supply chain consulting, Tecnova makes it possible for companies to:

●   Understand how the market works by analyzing it and running feasibility tests

●   Set up and put into action strategies to get into new markets and increase sales

●   Simplify the supply chain and upgrade the way aftermarket services are run

●   Overcome challenges related to regulations and grow partnerships for long term

When you work with our firm, you can be sure your business is ready to succeed in the automotive sector and benefit from many opportunities.

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Reference

Foreign Direct Investment (FDI) Policy of India

India is becoming a global manufacturing sourcing hub

Growth Strategies for the Automotive Sector in India

India is a prominent player in the global automotive market