Indian auto component manufacturers are poised for significant export growth in the independent aftermarket (IAM), with major opportunities emerging in Brazil, Indonesia, Colombia, African regions, and the UAE. As per a recent report by EY-Parthenon, Brazil and Indonesia lead among mature markets due to large, ageing vehicle fleets, while Africa’s price-sensitive demand aligns with India’s cost advantage. The UAE serves as a key re-export hub to GCC and Africa.
In India, growth is driven by electrification, e-commerce, advanced diagnostics, a growing and ageing vehicle parc, and a shift to organized workshops. The Indian automotive aftermarket valued at US$ 16.4 billion in 2024, is projected to reach US$ 35.5 billion by 2033, at 8.3% CAGR.
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According to a recent report by EY-Parthenon, Indian auto component manufacturers have a substantial opportunity to grow exports, particularly in the independent aftermarket segment. The global auto component market presents strong growth potential for Indian suppliers, with promising prospects in Brazil, Indonesia, Colombia, and various African regions.
The report categorises the opportunity into two market types:
- Mature markets with large consumption volumes
- Developing markets with strategic trade advantages
Among mature markets, Indonesia stands out with a projected aftermarket size of US$ 7,759 million by 2028. Importers here value short lead times and flexible order quantities—requirements well-suited to Indian suppliers.
Brazil also offers immense potential, driven by a high number of vehicles on the road and an ageing fleet, with an expected aftermarket size of US$ 12,091 million.
Colombia, with a projected US$ 1,999 million aftermarket, is another attractive target, though success here will require organised supply chains through large distributors and wholesalers.
Poland also features in this mature market category, with an aftermarket of US$ 4,769 million, though the immediate priority for Indian players lies in Brazil, Indonesia, and Colombia.
Amongst the developing markets, Africa presents vast opportunities. The projected aftermarket sizes are:
- North Africa: US$ 3,415 million
- South Africa: US$ 3,685 million
- East Africa: US$ 521 million
- West Africa: US$ 596 million
These regions typically prefer affordable parts over genuine ones, offering Indian manufacturers a competitive edge.
North and South Africa, in particular, are seeing a rise in independent garages, further driving demand for aftermarket components. Customers in East and West Africa are highly price-sensitive, often opting for parts up to 50% cheaper than Chinese alternatives.
The UAE, with an aftermarket size of US$ 888 million, plays a strategic role as a trade gateway to Gulf Cooperation Council (GCC) nations and African markets. Its logistical advantages and faster turnaround times make it an essential hub for Indian exporters targeting the region.
As per the report, Indian auto component exporters can harness these opportunities to penetrate high-growth markets, utilise their cost advantages, and expand their global reach, with Brazil, Indonesia, Colombia, and Africa as key focus areas.
About independent aftermarket (IAM)
The independent aftermarket (IAM) covers vehicle parts, accessories, and services supplied outside the control of the vehicle’s original equipment manufacturers (OEMs). While OEM parts are produced by the automaker itself, IAM products are manufactured by third parties and sold through independent distributors, retailers, and service providers. Key characteristics of the IAM include:
- After a vehicle’s warranty expires, many owners opt for IAM suppliers to reduce maintenance costs.
- IAM channels offer multiple brand options for the same component, unlike the single-brand approach of OEMs.
- IAM products are generally more affordable than OEM equivalents.
Third-party manufacturers operate extensive distribution networks, including spare parts shops, mechanic workshops, and online marketplaces.
Trends in Indian automotive aftermarket
The Indian automotive aftermarket is evolving rapidly, shaped by multiple transformative trends.
Electrification is reshaping demand as EVs are projected to make up 10–15% of vehicle sales by 2030, reducing the need for traditional components such as spark plugs, radiators, and fuel injectors, while creating growth areas in battery packs, inverters, and thermal management systems.
Digitization and e-commerce are revolutionizing accessibility, with both B2C and B2B platforms like Spareshub, Automovill, and boodmo B2B streamlining procurement and supply chains; online spare parts sales grew by 40% last year due to greater convenience and reach.
The increasing sophistication of vehicles, with more sensors and complex ECUs, is driving demand for advanced diagnostic tools and skilled technicians capable of interpreting data and performing precision repairs.
Meanwhile, the Indian vehicle parc is expected to exceed 32 crore by 2025, with an average age of 7–8 years, boosting demand for maintenance parts and repairs, while the rising popularity of SUVs and compact cars creates segment-specific part requirements.
A clear shift is also underway from unorganized to organized workshops and service networks, fuelled by consumer expectations for quality, transparency, and standardized service; the organized aftermarket is forecast to grow at 8–10% CAGR by 2027, aided by technician upskilling initiatives such as EXPRO’s FOFO franchise model and training programs.
Growing awareness about the importance of genuine parts is increasing demand for authorized distributors and trusted brands, countering counterfeit risks.
Additionally, greater penetration of insurance and warranty services is streamlining the repair process, promoting planned maintenance, and ensuring a steady flow of part replacements, with a rising share of repairs now processed cashlessly.
Together, these trends are reshaping the aftermarket landscape, creating both challenges and significant growth opportunities for industry players. In 2024, India’s auto parts aftermarket stood at US$ 16.4 billion, and IMARC Group forecasts it will expand to US$ 35.5 billion by 2033, reflecting a CAGR of 8.3% over 2025–2033.
Conclusion
India’s auto component industry is well-positioned to leverage its cost advantages, manufacturing capabilities, and strategic access to emerging markets to expand in the global independent aftermarket. With strong demand in Brazil, Indonesia, Colombia, African regions, and the UAE, coupled with domestic aftermarket growth driven by a rising vehicle parc, organized service networks, and digitization, the sector holds immense potential. By aligning with evolving trends and market needs, Indian exporters can secure a stronger global footprint and sustainable long-term growth.
