Uno Minda Aftermarket Sees Business Growing 2-3x to Over $300 Million in 3-4 Years

India-based auto component maker Uno Minda is targeting a two- to three-fold expansion of its aftermarket business by the end of this decade to over $300 million, betting on technology-led products, wider distribution, and rising demand for replacement parts as vehicles become increasingly complex.

In the financial year 2025, the company’s aftermarket division generated revenue of around Rs 1,115 crore and accounted for about 7-8% of Uno Minda’s overall group turnover. “We plan to grow the aftermarket business by around 2-3 times in the next 3-4 years,” said Anand Kumar, vice president for sales and marketing at the group’s aftermarket division.

According to him, India’s automotive aftermarket has grown sharply over the past decade, doubling in size to nearly Rs 1 lakh crore from Rs 50,000 crore, excluding tyres, batteries and lubricants. Growth has been driven by a rising vehicle population, longer vehicle life cycles and increasing use of electronic and electrical components.

Kumar said the market is broadly divided into three segments: OEM-branded parts sold as genuine spares, the independent aftermarket led by organised suppliers, and the unorganised segment. He said the balance between these segments has shifted in recent years, especially after the COVID-19 pandemic.

“During the COVID period, we have seen the unorganized player mostly vanished,” he said, adding that their share fell sharply before starting to recover from 2023 onwards. At the same time, vehicle manufacturers stepped up their focus on selling genuine parts beyond their authorised service networks, increasing competition for independent aftermarket brands. 

Kumar said OEMs now see the aftermarket as a strategic business, supported by longer warranties and better control over vehicle data. “In the last 2-3 years, the OE aftermarket demand has been great.”

Uno Minda’s aftermarket portfolio includes switch, light, horn, filter, RVM, braking, seating, lubricants, battery, car accessories and alloys. The company is also positioning itself around technology-driven categories, particularly in electrical and electronic products. 

Kumar said this segment alone accounts for about Rs 20,000 crore of the overall aftermarket, with demand rising as vehicles add more features and electronics. “For tie 1 supplier, technology is the most important thing,” he said. 

According to him, technology is becoming the single biggest differentiator in the aftermarket. As vehicles move to BS6, connected systems, electrification and higher electronics content, only suppliers with strong in-house technology and OEM-grade quality will remain relevant. 

The company currently supplies aftermarket products to more than 7,000 distributors across over 600 districts in India. Kumar said wide availability and strong distribution are critical as product life cycles shorten and the number of stock-keeping units increases.

Uno Minda is also preparing for future demand linked to electric vehicles, although Kumar said the EV aftermarket is still at an early stage. “Very few vehicles have come; the demand is yet to come,” he said. He added that EV chargers are likely to be among the first components to see meaningful replacement demand due to Indian usage conditions.

The company is also expanding its aftermarket exports through a dedicated export vertical. Kumar said exports currently account for about 8% of aftermarket revenue and are expected to rise to around 15% over time. The focus will be on markets where Indian vehicle makers have a strong presence, including Africa, West Asia and parts of Southeast Asia.

Despite rising competition from OEM-branded parts, Kumar said Uno Minda expects organised independent players to continue playing a key role as vehicles become more advanced. “Both will definitely co-exist,” he said, adding that technology and scale would decide long-term winners in the aftermarket space. ENDS