The Indian automotive aftermarket closed 2025 on a defining note. The year marked a decisive shift away from fragmented, price-led competition toward formalisation, compliance, and value-led growth. Policy reforms, evolving consumer behaviour, and structural changes in vehicle ownership patterns collectively reshaped the sector’s trajectory.
Industry leaders highlight that the aftermarket is no longer driven only by replacement demand. Instead, it is increasingly shaped by quality upgrades, safety consciousness, and long-term vehicle ownership trends.
Policy Reform as a Structural Catalyst
One of the most consequential developments in 2025 was the GST 2.0 rationalisation implemented in September. By bringing most auto components under a uniform tax slab, the reform addressed long-standing inefficiencies across the value chain.
This shift delivered multiple benefits:
- Reduced tax arbitrage and informal trade
- Lower total cost of ownership for vehicle owners
- Improved compliance across manufacturers and distributors
- Greater consumer confidence in genuine components
The reform accelerated the transition toward a transparent and organised aftermarket ecosystem, reinforcing trust in certified products and compliant suppliers.
Quote from Industry Leadership
Reflecting on the year’s transformation, Mr. Vishal Kaul, President & Business Head, Uno Minda Aftermarket, stated:
“As the industry closes up another transformative year, the Indian automotive aftermarket has experienced a pivotal transformation and entered a new phase driven by formalization, quality, sustainable value-led growth, and wider accessibility of vehicle safety features. The GST 2.0 rationalization in September 2025, which brought most auto components under a uniform tax slab, has emerged as a landmark reform. This long-awaited change has optimized transformation across the value chain, decreased the total cost of ownership for vehicle owners, and strengthened consumer trust in genuine, compliant auto components, further accelerating the systemic shift toward a more transparent aftermarket ecosystem.
With SUVs now accounting for over half of new vehicle sales, the aftermarket product mix is evolving rapidly, fueled by strong demand for premium upgrades such as alloy wheels, high-intensity LED lighting, and advanced Android-based infotainment systems. At the same time, the growing awareness of Bharat NCAP ratings is accelerating the wider adoption of vehicle safety, with consumers increasingly investing in certified and trusted components and preventive safety technologies to protect their vehicles.
Looking forward, 2025 has marked the beginning of EV-specific aftermarket solutions, such as charging infrastructure and high-voltage electronics, complementing the traditional ICE segment. As the market matures, Uno Minda is poised for resilient growth in 2026, supported by a rising middle class and longer vehicle lifecycles that drive steady demand for high-quality maintenance. To meet this evolving demand, we are significantly expanding our portfolio in 2026 with the launch of our advanced Blade Fuse range and an upgraded line of high-performance 4W and 2W LED bulbs. With a robust presence in over 25+ product categories and a distribution network spanning 7,000+ pincodes, we remain committed to ensuring that world-class, reliable automotive solutions are accessible to every corner of India, even amid global raw material volatility.”
SUV Dominance Reshapes Aftermarket Demand
SUVs accounted for more than half of new vehicle sales in 2025, fundamentally altering the aftermarket product mix. Owners increasingly sought premium and technology-led upgrades rather than basic replacements.
Key demand drivers included:
- Alloy wheels and aesthetic enhancements
- High-intensity LED lighting solutions
- Android-based infotainment systems
- Comfort and convenience accessories
This shift reflects higher consumer willingness to spend on personalization and long-term ownership value.
Safety Awareness Gains Momentum
Another defining trend was the growing influence of Bharat NCAP. Increased awareness of safety ratings pushed consumers to prioritise certified and trusted components.
As a result:
- Preventive safety technologies gained traction
- Demand rose for compliant electrical and electronic parts
- Quality certification emerged as a key purchase criterion
Safety is now increasingly viewed as an investment rather than a discretionary expense.
Emergence of EV-Specific Aftermarket Solutions
While internal combustion engine vehicles continued to dominate volumes, 2025 marked the early formation of EV-focused aftermarket categories.
Initial growth areas included:
- Charging infrastructure components
- High-voltage electrical and electronic systems
- EV-compatible accessories
These developments complemented the traditional ICE aftermarket and laid the foundation for long-term diversification as EV penetration increases.
Outlook for 2026
Industry expectations for 2026 remain constructive. A rising middle class, longer vehicle lifecycles, and increasing emphasis on maintenance over replacement are expected to support steady aftermarket demand.
Manufacturers are responding by expanding portfolios, strengthening distribution networks, and focusing on reliability amid global raw material volatility. Product innovation and accessibility are set to remain central to competitive positioning.
Conclusion
The Indian automotive aftermarket in 2025 evolved into a more mature, transparent, and value-driven ecosystem. Policy reforms, SUV-led demand shifts, heightened safety awareness, and the early emergence of EV solutions collectively reshaped the sector. As the industry enters 2026, structural tailwinds and disciplined growth strategies position the aftermarket for resilient, long-term expansion.
