Nippon Paint Targets 25-26% Growth in Automotive Aftermarket Business Over Next Three Years

Nippon Paint India is targeting annual growth of 25-26% in its automotive aftermarket business over the next two to three years, as the company doubles down on paint protection films (PPFs), car care products, dealership networks, and OEM-linked aftermarket opportunities.

The company believes the growing vehicle parc, rising consumer focus on vehicle protection, and the emergence of new categories such as PPFs will help it outpace industry growth over the medium term.

"We are targeting 25-26% growth over the next two to three years compared to the current 18-20% growth trajectory. As the business base increases, even percentage growth translates into very significant absolute growth numbers," Jenender Anand, Vice President, Automotive Refinish Business, Nippon Paint India, told Autocar Professional.

The automotive refinish industry has witnessed strong momentum in the post-pandemic period, supported by growth in India's vehicle population and increasing demand for repair, restoration, and appearance-enhancement solutions.

According to Anand, India's vehicle parc is expanding by around 6-8% annually, while the auto refinish industry has recorded growth of approximately 14-15% CAGR over the past three fiscals. Nippon Paint's own automotive refinish business has outperformed the market, growing at close to 20% during the same period.

Beyond Paint

Traditionally associated with collision repair and repainting, the automotive refinish segment is increasingly evolving into a broader vehicle-care ecosystem.

For Nippon Paint, the opportunity now extends beyond coatings into adjacent categories, including paint protection films, ceramic coatings, detailing solutions, surface protection products, and consumer-focused car care offerings.

"Our strategy has been to become a complete solution provider rather than just a coatings supplier," Anand said. The company has expanded its portfolio to include PPFs, detailing products, ceramic coatings, and a range of car care solutions aimed at both professional users and vehicle owners.

Auto refinish currently contributes close to 20% of Nippon Paint India's overall business, making it one of the company's key growth verticals.

PPFs Emerge as a Major Growth Driver

Among the newer categories, Anand expects PPFs to be one of the fastest-growing businesses over the next few years.

PPFs are transparent films applied to painted surfaces to protect vehicles from scratches, stone chips, weathering, and UV damage. While the category remains relatively small in India, growing consumer awareness and increasing dealership participation are expected to drive adoption.

"The growth will be massive because the current base is still small. Even 100% growth would be a conservative estimate," Anand said.

Nippon Paint offers PPF solutions under its EnShield brand and has introduced products across multiple warranty categories, alongside newer offerings such as headlight films and customised solutions. The company is also expanding its EnShield Studio network across the country.

Industry participants increasingly view PPFs as a significant aftermarket opportunity because of their high value per installation and growing acceptance among vehicle buyers seeking long-term paint protection.

E-commerce and DIY Opportunity

Alongside PPFs, Nippon Paint is betting on e-commerce as another major growth pillar.

The company recently launched FX10, a dedicated e-commerce-focused car care brand that includes products such as shampoos, ceramic coatings, waterless wash solutions, rat repellents, tyre shiners, dashboard cleaners, and scratch-removal products.

According to Anand, the DIY vehicle-care market remains underpenetrated in India but is expected to grow rapidly as consumers become more comfortable purchasing maintenance products online.

The company already sells through major online platforms and sees increasing demand from urban consumers looking for convenient vehicle-care solutions.

Sustainability and Network Expansion

Beyond new product categories, Nippon Paint expects network expansion and greater OEM penetration to support growth.

The company works with OEMs, dealerships, distributors, body shops, and detailing centres across the automotive ecosystem and continues to invest in training and technical support capabilities.

At the same time, Anand sees sustainability emerging as an increasingly important growth lever.

"There is a significant shift in the industry toward greener products, low-VOC coatings, and water-based paints. Nippon is already well prepared in these areas," he said.

As regulatory expectations evolve and customers become more conscious of environmental performance, suppliers offering sustainable technologies are expected to gain an advantage.

With vehicle ownership continuing to expand and consumers spending more on vehicle appearance, protection, and maintenance, Nippon Paint believes the automotive aftermarket is entering a new phase of growth, one that extends well beyond traditional paint and repair services.