The shift begins: How improved OEM parts availability is reshaping India’s aftermarket future & growth

The Indian automotive aftermarket is entering a new era as OEMs open up access to their parts beyond authorised dealerships. Brands like Maruti, Tata, Mahindra, and Hyundai led the way by making spare parts available through distributors and service partners.

Now, more manufacturers such as Toyota, Volkswagen, Skoda, Renault, and Mercedes are joining the trend supplying either through newly created distribution channels or via their dealerships. Although some companies (e.g., Honda, Kia, MG, BMW and other premium brands) are holding back, it is only a matter of time before they adopt this model to remain competitive.

This shift in the market is bound to dismantle old barriers and will reshape the aftermarket industry. With easier access to OEM parts, we’re going to see new opportunities, tougher competition, and more innovation, ultimately benefiting everyone involved: from car owners to repair shops to suppliers.

For OES (Original Equipment Supplier) and Aftermarket manufacturers, the rise in OEM parts availability poses both a challenge and an opportunity. Those who innovate and modernize their operations will capture significant market share, while those that resist change will fall behind

I see this leading to more options, better prices, and stronger competition in the car parts market.

1. More choice and savings for car owners

With OEM parts becoming more accessible outside dealerships, independent garages are transforming from “cheap” alternatives into credible service providers offering genuine parts at competitive prices. This shift is reshaping consumer behaviour and expanding service options.

• Longer vehicle ownership drives cost sensitivity: As consumers keep their vehicles longer, price sensitivity is driving demand for affordable, high-quality parts and services. The availability of genuine OEM parts at independent garages makes them a more attractive option than ever.

This transition and higher customer inflow at independent garages is bound to push them to up skill, upgrade facilities and modernise repair operations via technology.

• India’s repair market: India has around 20,000 OEM dealerships and estimated 200,000+ independent passenger car repair shops. Globally, more than 70% of post-warranty vehicles are serviced at independent garages due to convenience and affordability - India is now moving in the same direction.

The combination of cost-effective service with genuine parts will allow car owners to make decisions based on value, rather than being restricted by service networks. This is a huge opportunity for independent repair shops and parts suppliers to thrive.

2. Competition fuels innovation among aftermarket suppliers

The widespread availability of OEM parts will drive OES and aftermarket suppliers to launch new products faster, improve product quality, streamline operations, develop digital catalogs, offer competitive pricing and adopt modern distribution channels. While OEMs start out from a position of strength, Aftermarket suppliers can still capture significant market share if they adapt to the changes.

• Innovation in cataloguing and fitment data: Brands like ZF 集团 and Bosch have implemented advanced catalogs with VIN-based search tools, making it easy to find parts. Some Indian manufacturers, such as ELOFIC INDUSTRIES LTD. , have also improved product discoverability by offering OE cross-references and fitment information online. However, many manufacturers still rely on outdated systems, like incomplete or inaccurate paper and Excel / PDF based catalogs, causing friction for repair shops in discovery of the right part for a specific vehicle.
• The need for faster supply chains: Independent repair shops are under tremendous pressure from customers for timely delivery, particularly as they compete with Dealership service centers. Speed of response and availability matters in the aftermarket business. Yet many distributors are understocked 70% of the time, resulting in missed opportunities. Companies that adopt data-driven insights for demand forecasting will have a distinct advantage by ensuring that the right parts are always available.
• Margins and pricing strategies: OEM brands have begun optimising pricing strategies. For instance, Toyota recently reduced MRPs on several products, signalling the importance of competitive pricing. At the same time, OEM margins have grown steadily now into double digits, incentivising independent garages to prefer genuine parts. In many cases, even for fast moving categories like Filters, Aftermarket parts are priced higher than their OEM equivalents. Aftermarket suppliers must align their pricing and margin strategies accordingly to remain relevant.

3. The Push model is fading: Building Pull through brand awareness

Traditionally, aftermarket manufacturers have relied on a push model, promoting products through distributors and repair shops. However, with the rise of e-commerce and direct-to-consumer platforms, a shift to a pull model is essential, where brand awareness among consumers drives demand.

Brands like Mobil 1 , Castrol , and 壳牌 have successfully built strong recognition among car owners, influencing choices in the lubricants category. Similarly, brands like Bosch and TVS are well-known, yet many car owners are unaware of the full range of products they offer. This lack of awareness prevents them from making specific requests or approving these brands when proposed by garages.

To thrive in this changing environment, aftermarket suppliers must invest in brand building - educating car owners about their product range and encouraging garages to recommend their products. Shifting to a pull strategy will be crucial for growth in the increasingly competitive aftermarket space, where brand recognition and trust drive consumer demand.

4. Overcoming challenges in Spares Discovery, Availability, Distribution & Technology Adoption

Even today, repair shops face challenges with parts discoverability and availability in regard to Aftermarket spares. To capitalise on the market transformation, Aftermarket suppliers must focus on breaking down these barriers. In addition, improved distribution networks and enhanced technology adoption among their supply chain (specifically Distributors and Retailers) will be essential to ensure that repair shops can easily find and access the parts they need.

• Discoverability: Poor catalog management and lack of real-time stock visibility are ongoing issues. For example, most Aftermarket suppliers still cannot match the ease of discovery provided by VIN-based searches available for OEM parts. Fixing this gap is essential to capture more business from independent garages.
• Availability and Turnaround Time: Many distributors still operate on paper-based processes and legacy accounting systems, resulting in slow response times and stock visibility issues. Suppliers need to upgrade systems to provide real-time product availability and better service levels. To fast track the process of change, Aftermarket suppliers should work closely with their Distributors.
• Distribution: Expanding channels and catering to key customer segments Aftermarket suppliers typically rely on retailers for last-mile distribution, which limits product availability. To enhance accessibility, distributors should explore e-commerce platforms and direct-to-repair-shop models.
• As the market shifts, Insurance companies have become another significant factor, focusing on OEM parts in repair claims. These insurers, like Acko and ICICI, prioritise OEM parts for their fast availability, authenticity, and hassle-free fitment, even at a higher cost. Some are even establishing repair shops or partnering with networks to streamline processes. For aftermarket manufacturers, building trust with insurers is essential. They need to highlight cost savings and improve discoverability through OE cross-references and quick availability, positioning themselves as reliable and cost-effective alternatives.
• Additionally, the growing Fleet segment presents an opportunity for Aftermarket manufacturers. Fleets are open to Aftermarket products but seek low-cost options. While there are many low-priced, lower-quality products available, reputable brands should consider developing competitively priced offerings specifically for this segment, alongside their premium products, allowing them to meet fleet demands without compromising quality.

The road ahead: Innovation as a key driver in the automotive aftermarket

As in many other industries, e-commerce is bound to transform the automotive aftermarket by reshaping traditional supply chains and creating growth opportunities for OEMs and Aftermarket manufacturers.

E-commerce & online platforms enable consumers and garages to compare parts, increasing transparency and shifting power toward buyers. Digital channels will allow for direct access to parts, levelling the playing field and forcing suppliers to compete on quality, availability, and price.

Additionally, at scale, e-commerce platforms like Autozilla , boodmo - spare parts expert and others can provide access to valuable data, enabling suppliers to predict demand, optimise inventory, and personalise offerings, ultimately positioning them for greater market share.

Looking ahead, the convergence of improved OEM parts availability, evolving consumer expectations, and the rise of e-commerce signals a new era of disruption in the Indian automotive aftermarket. To remain relevant, aftermarket players need to modernise operations, embrace digital platforms, and strengthen brand visibility.

• For Car owners: This transformation brings more choices and lower costs without compromising quality.
• For OEMs: It strengthens customer loyalty and reduces counterfeiting by funnelling products through legitimate channels.
• For Aftermarket manufacturers: The future lies in adopting modern distribution strategies, investing in brand awareness, and enhancing product discovery and availability.

The automotive aftermarket is primed for evolution, and those who embrace innovation will be the ones to drive the industry forward. Traditional service and supply models must adapt to meet the needs of a competitive, modern market.

We have the right to have our products repaired reasonably, anywhere we choose, at a price that suits us - this is our Right to Repair. Implementing this in India would be a game changer for product sustainability, create more job opportunities, and promote fair competition in the auto repair market among manufacturers, and independent repair shops. Our kudos to those OEMs who are leading the way by making spare parts available.