By T. Murrali
The recently concluded 11th edition of CII AutoServe 2025 in Chennai showcased a strong focus on shaping the future of India’s automotive aftermarket. Organised by the Confederation of Indian Industry (Southern Region), the event has brought together leaders from government, industry, and academia to discuss how innovation, technology, and sustainability will drive the next decade of mobility.
The themes — “Driving the Next Decade: Innovation, Integration, and Intelligence in the Automotive Aftermarket” and “Accelerating Innovation: Smart, Sustainable, and Software-Driven Mobility” — reflect the changing priorities of the sector. Over three days, AutoServe 2025 examined how digitisation, Artificial Intelligence, connected technologies, and new service models can make the aftermarket more efficient and customer-focused.
AutoTech Conference & Managing Director, Renault Nissan
Technology & Business Centre India
In his inaugural address, Dr. T Prabhushankar, Managing Director, Metropolitan Transport Corporation (Chennai) Ltd, highlighted Tamil Nadu’s leadership in manufacturing and innovation. He said the State’s strength lies in its industrial ecosystem and its ability to adapt to change. He also reaffirmed the Government’s commitment to fostering entrepreneurship, employment, and sustainable growth through transparent and collaborative policies.
Industry leaders at the conference shared their perspectives on how India can enhance its competitiveness. Mr. P. Ravichandran, Deputy Chairman, CII Southern Region & President, Danfoss Industries Pvt Ltd, emphasised the need to improve manufacturing efficiency, integrate AI and automation in MSMEs, and adopt circular economy principles. Mr. Debashis Neogi, Chairman, CII International AutoTech Conference & Managing Director, Renault Nissan Technology & Business Centre India, pointed out that India is now among the top three passenger car markets in the world, driven by rapid advances in connectivity, electrification, and automation.
Speakers also highlighted the growing importance of the aftermarket. Mr. Ramashankar Pandey, Social Defence Fellow (Indian Administrative Fellowship) & Director (NED), Paracot Products Ltd, noted that the aftermarket directly supports millions of livelihoods and should be recognised as a core part of the automotive value chain. He called for stronger frameworks for right-to-repair, skill development, and digital integration to make the ecosystem more organised and reliable.
CEO – Aftermarket and Group Chief Strategy Officer, UNO Minda Ltd
According to Mr. Rakesh Kher, Chairman, CII Automotive Aftermarket Conference & CEO – Aftermarket and Group Chief Strategy Officer, UNO Minda Ltd, the Indian aftermarket is already worth about ₹1,00,000 crore and continues to grow rapidly. He said the industry is moving from manual repairs to connected diagnostics, and from fragmented supply chains to organised, technology-driven operations supported by digital platforms and ESG practices.
Adding to this, Mr. N. K. Ranganath, Past Chairman, CII Tamil Nadu, said the Indian aftermarket, valued at around $13 billion in 2023, is expected to reach $21.6 billion by 2030, growing at a CAGR of 7%. Rising passenger vehicle sales and expanding mobility demand will continue to drive growth in parts, accessories, and service networks.
With over 75 exhibitors, a Japan Country Pavilion, 11 sectoral associations, and multiple discussions on AI, IoT, EV maintenance, and remanufacturing, AutoServe 2025 served as a comprehensive platform to understand where the industry is headed. The event marked an important milestone in building a smarter, more sustainable, and technology-driven future for India’s automotive aftermarket.
Aftermarket, Lucas TVS
Speaking to AFTERMARKET & SERVICE, on the sidelines of the event, on International Auto Tech Conference, Mr. Debashis Neogi, said, the conference reflects the major transformation shaping the global auto industry. The key enablers of this shift are software-defined vehicles (SDVs), connectivity, electrification, shared mobility, and sustainability. The event brought together industry leaders, startups, researchers, investors, and academia to discuss how India can leverage its strengths to lead this change.
He believed that India is uniquely positioned to define the future of global mobility. The country combines the world’s third-largest automobile market, a strong Tier-1 supplier base, the third-largest startup ecosystem, and 50% of global capability centres. Supported by a vibrant education system producing over 1.5 million STEM graduates annually, India has both the market and the talent to drive software-led automotive innovation.
Aftermarket Product Division, Rane (Madras) Limited
Mr. Neogi noted that Chennai, with 30% of India’s auto manufacturing and supplier base, is the ideal location for such a conference, given its industrial strength and talent pool. Discussing SDVs, he explained that cars are becoming connected and intelligent companions that blend mobility with lifestyle. The modern car, he said, is a “living room on wheels”, integrating entertainment, comfort, and productivity into everyday travel. This shift marks the rise of experience-driven vehicles, where software and digital ecosystems redefine customer engagement. The next step is to combine IT and automotive expertise — two of India’s largest industries — to create the world’s software factories for mobility, he added.
As the automotive experience becomes more personalised, Mr. Neogi stressed the need for interdisciplinary talent — merging software, design, and human-centric engineering. “Cars will soon deliver everything you expect in your living room,” he said, highlighting how health, insurance, and infotainment services will integrate seamlessly through vehicle platforms.
Globally, SDVs are already visible in brands like Tesla and BYD, and Renault-Nissan will roll out its first SDV models next year, with India expected to follow closely. Within the next three to five years, he predicted that Indian roads will witness the full potential of software-defined mobility, driven by local talent and global collaboration.
Innovation in Motion
Speaking from AutoServe 2025 standpoint, Mr. Rakesh Kher told this publication that the event’s theme, “Accelerating Innovation: Smart, Sustainable and Software-Driven Mobility,” reflects a sector in transition — moving from traditional distribution-led operations to a technology-driven, customer-aware ecosystem.
Mr. Kher noted that past methods won’t take the industry forward. Innovation must extend beyond products to the way they’re manufactured, sold, and serviced. Technology, automation, and data-driven decision-making will shape the future of the aftermarket, as discussions at the event ranged from software-defined mobility and connected vehicles to sustainable manufacturing and workshop digitalisation.
The industry sees the value chain becoming more intelligent and connected. While sales will remain largely offline, digital platforms are increasingly influencing customer choices. Buyers now research specifications and reviews online before purchasing from local distributors — a shift he described as “phygital”, blending physical distribution with digital engagement.
Consumer education, he said, will be key to fighting counterfeit parts and promoting the use of genuine components. Most vehicle owners in India are familiar only with items like batteries, tyres, lubricants, and filters. He also saw potential in the Do-It-Yourself (DIY) culture, where customers handle simple installations themselves — a trend that’s slowly gaining ground in India.
As the industry transitions to electric and alternative fuel vehicles, the aftermarket faces new challenges. Many upcoming systems, especially ADAS and other software-integrated technologies, may not have direct aftermarket equivalents. The sector will need to adapt with universal, platform-compatible components and invest in retraining and retooling to handle the next generation of digital vehicles.
Mr. Kher believed that the aftermarket of the future will be smart, sustainable, and collaborative — powered by technology, built on partnerships, and defined by customer trust.
GST Rationalisation
Mr. Muralidharan K, Associate Vice President – Aftermarket, Lucas TVS, believed that the government’s recent GST rationalisation will be a major boost for India’s automotive aftermarket. The move to reduce multiple tax slabs to two, bringing auto component GST down from 28% to 18%, levels the playing field for organised manufacturers. Earlier, unregistered players could sell products tax-free, undercutting branded firms by nearly 30%. With the tax gap narrowed, genuine brands can now compete more effectively, improving both market fairness and product authenticity.
He said this reform could also help curb counterfeit parts, as spurious sellers will find it harder to operate profitably. “This change gives us a fair chance to compete on quality rather than price distortion,” he noted.
Mr. V. Narayanan, AVP – Head Sales & Marketing, Aftermarket Product Division, Rane (Madras) Limited, shared similar view. For the aftermarket, which operates on both B2B and B2C models, the reduction in MRPs is already visible across companies, making genuine spare parts more affordable and stimulating replacement demand. While GST rationalisation narrows the price gap between branded and spurious parts, he believed it will only partially curb counterfeit products. Real progress will depend on tighter regulation and industry collaboration.
Advanced Automotive Research (CAAR)
Discussing India’s fragmented aftermarket landscape, Mr. Muralidharan pointed out that success still depends heavily on local relationships among dealers, mechanics, and retailers. Lucas TVS aims to strengthen these connections by offering direct access to products, ensuring availability at the right price, and protecting dealer margins. The company is careful not to devalue dealer stock through sudden discount schemes, building long-term confidence in its brand.
Digitalisation
Digitalisation is also reshaping the distribution chain. With the rise of e-commerce, online payments, and real-time transactions, the aftermarket is slowly shifting from a credit-driven model to a cash-and-carry system. Mechanics and small garages — now financially stronger — increasingly buy directly from wholesalers or dealers, bypassing some retail layers. Over the next five years, he predicted further consolidation of intermediaries, improving efficiency and margins across the chain.
While technological advances have drastically extended component lifecycles — cutting demand for items like engine parts by over 70% — overall aftermarket growth remains strong, fuelled by India’s expanding vehicle population.
Looking ahead, Mr. Muralidharan expected the aftermarket to remain healthy until 2030, despite the rise of EVs and alternate mobility solutions. However, he warned that emerging innovations like drone taxis could disrupt the automotive ecosystem in the longer term. For now, though, the internal combustion engine segment will continue to anchor the aftermarket, offering significant growth opportunities before the next big mobility shift takes hold.
Experience-First Engineering
Speaking on SDVs, Mr. Yogesh Umbarkar, Vice President – Asia Region, Valtech Mobility, said, the focus is shifting from engineering efficiency to enhancing the driver’s experience — making vehicles more intelligent, predictive, and human-centric. He described it as “user experience-defined mobility.”
In commercial fleets, software-driven analytics enable predictive maintenance, minimising downtime and improving uptime — a critical advantage for logistics operators. Real-time data helps anticipate parts demand, streamline inventory, and reduce breakdowns or recalls. For drivers, AI-powered systems monitor battery health, performance, and fatigue, automatically scheduling service or taking preventive action to ensure safety and continuity.
Valtech Mobility also reimagines the driver’s digital experience through localised voice assistants and adaptive UX interfaces. These features support tasks like navigation, rest-stop suggestions, and AI-driven companionship, making long journeys more comfortable and engaging.
Software Factory
Talking from the software factory model standpoint, which treats vehicle software as a living system, Mr. Pramod Nanjundaswamy, Global Delivery Head of Cyient, said, updates, fixes, and new features can be deployed remotely with complete traceability, while streamlined zonal and central compute architectures replace dozens of ECUs with high-performance computing hubs.
Beyond production, SDVs are reshaping the aftermarket — where digital upgrades replace mechanical replacements, and AI-driven diagnostics enable remote maintenance. India is fast emerging as a hub for this transformation, led by Mahindra & Mahindra’s Born EV platform and other OEM investments in embedded software and cybersecurity, he said.
Intelligent Service Ecosystem
According to Mr. Natarajan Srinivasan CEO myTVS, India’s vehicle service ecosystem is moving from reactive maintenance to predictive, connected care. And this is led by myTVS and its Astra platform that links cars to the cloud for real-time diagnostics, predictive maintenance, and seamless service access. Using AI and IoT, it turns vehicles into self-diagnosing, intelligent machines and garages into digital hubs. Through the myTVS app, drivers can instantly connect to workshops, roadside help, or emergency services. By uniting OEMs, insurers, and service partners, myTVS is building a 24×7 car care network, redefining aftersales as an always-on, intelligent ownership experience, he added.
Aligning Research with Industry
The Centre for Excellence in Advanced Automotive Research (CAAR) is helping close the gap between research labs and the automotive industry in India, CEO of CAAR, Mr. Thiru Srinivasan, said. While India’s labs produce great ideas, many remain at the conceptual stage and never reach the market. CAAR focuses on “translational research” — taking those ideas, refining them, and turning them into ready-to-use technologies for manufacturers.
By working directly with companies, CAAR helps develop flexible, industry-specific solutions that speed up innovation and reduce time to market. This approach eliminates dependence on foreign technologies, cutting delays and ensuring better alignment with local needs.
CAAR also acts as a bridge between academia and industry, translating industrial challenges into research directions for universities. This helps students and researchers focus on relevant, practical innovations rather than purely academic ones, he added.
