🚗 New Vertical · Since Dec 2022
PCSPL's Auto Parts Division
Indian auto parts aftermarket has grown 16-18% CAGR over the previous two decades — and PCSPL is positioning itself to grow alongside it.
Indian auto parts aftermarket has grown 16-18% CAGR over the previous two decades — and PCSPL is positioning itself to grow alongside it.
The Indian auto parts aftermarket has grown at a 16-18% CAGR over the previous two decades and has not witnessed any clear fundamental changes in distribution practices — new conventional methods are now making way for the upcoming generation. The Indian auto parts dealers' aftermarket is predicted to expand further, with both large-scale and small-scale growth attracting young entrepreneurs, alongside a rising number of companies and capital.
The industry is expected to reach US$ 200 billion by financial year 2026. The auto components sector is expected to rise into double digits due to strong development prospects in the vehicle industry and the emergence of new auto part dealers. The auto component industry employs an enormous workforce directly and indirectly, and accounts for roughly 2.3% of India's Gross Domestic Product (GDP).
A large domestic market with increased purchasing power, a stable government framework, and ever-increasing infrastructure growth have made India a favorable destination for investment in this space.
Four pillars driving sustained growth in the sector.
Growing working population and expanding middle class remain key demand drivers. By 2025, 4 million EVs could be sold each year, rising to 10 million by 2030 — a market expected to reach US$ 206 billion by 2030.
India is emerging as a global hub for auto component sourcing, exporting over 25% of production annually. Exports are expected to reach US$ 30 billion in FY26, with a strong edge in shafts, bearings and fasteners.
100% FDI is allowed under the automatic route for auto components. PLI schemes on automobiles and auto components are expected to bring a capex of Rs. 74,850 crore (US$ 9.58 billion) over five years.
A cost-effective manufacturing base keeps costs 10-25% lower than Europe and Latin America. India is also the second-largest steel producer globally, adding a further cost advantage.
The auto ancillary sector is the other side of the automotive industry — dealing with the manufacturing and selling of intermediate aftermarket parts produced to the same measurement and quality as the original product. Supply chain members are effectively original equipment manufacturers, but under their own branding.
The Indian auto ancillary market is segmented by component supply to OEMs, covering heavy, medium and light commercial vehicles, passenger vehicles, tractors, three-wheelers, two-wheelers and more.
See how the top players in India's auto parts industry are positioned — or reach out directly.