Global Trade Agreements and Export Demand Propel New Opportunities for the Indian Aftermarket Ecosystem

As global manufacturers increasingly look toward diversification strategies, India’s automotive aftermarket, the sector providing parts and services after a vehicle’s initial sale. showcased  itself as a primary beneficiary. The recently concluded sixth edition of ACMA Automechanika New Delhi 2026 served as a high-stakes showcase for this ambition, drawing more than 870 exhibitors from 20 countries to the Yashobhoomi convention center in Delhi. 

The three-day event, spanning 51,200 square meters, arrived at a critical juncture for Indian trade policy. Industry leaders noted that momentum is building as the sector prepares for upcoming trade advantages under various pending trade agreements. With the United States and Germany already serving as top export destinations, the industry is closely watching the evolving geopolitical dynamics of India-EU and India-US trade discussions to further lower barriers for India-made components. 

The developments  should be seen in the context of the fact that the Indian automotive aftermarket isn't just growing; it is currently outpacing the broader industry and positioning itself as a high-performance engine for the nation's economy. In the first half of the 2025-26 fiscal year, while the total auto component industry turnover grew by a respectable 6.8%, the aftermarket segment surged ahead with a 9% growth rate, reaching a valuation of Rs 53,160 crore

AI and Electrification Lead New Launches

The trade floor was dominated by high-tech debuts aimed at moving India up the value chain. Uno Minda Ltd showcased a suite of innovations, including EV chargers, motors, and an infotainment system integrated with ChatGPT voice assistance.

Safety and high-precision tech also saw significant entries. CP Plus launched its "Made-in-India" CarKam dashcam series, while Sheen Automotive introduced a German-engineered anti-yellowing paint protection film. Sustainability-focused launches included Holostik India’s "NaturTrust" packaging, which uses holographic technology to prevent counterfeiting (the sale of fraudulent parts) and tampering.

To meet modern emission standards, Icon Autocraft and Sarveshwari Technologies both unveiled specialized cleaning machines for Diesel Particulate Filters (DPF), the components responsible for trapping soot in modern engines.

Headwinds and Localization:
Despite the optimism, panel discussions highlighted significant hurdles. Knowledge sessions focused on regulatory compliance and the technical challenges of the EV ecosystem. While the Indian EV component market is expected to reach $18.6 billion by 2034, experts warned of a persistent dependence on imported raw materials and the need for massive initial capital investments.

Panelists emphasized that for India to realize its global dream, manufacturers must shift from basic parts to power electronics and smart safety systems. This shift is already being seen in the battery market, which is estimated to reach $23.30 billion by 2031 as domestic production of cells and management systems accelerates. 

A Global game:
The record-breaking participation of wholesalers, distributors, and technology providers at Yashobhoomi signals that India is no longer just a regional player. As international OEMs (original equipment manufacturers) increase their "requests for quotations" from Indian suppliers, the sector is transitioning toward a high-tech future. With the potential for new trade deals to unlock further access to Western markets, the Indian aftermarket appears poised to become a central pillar of the global automotive supply chain.