As per MRFR analysis, the India automotive service market — encompassing maintenance, repair, and aftermarket services — has been steadily accelerating and is poised to nearly double over the next decade. 

Growth & Market Size

The projected growth trajectory underscores robust expansion, reflecting changing mobility patterns, rising vehicle ownership, and evolving consumer expectations. Factors fueling this growth include:

  • Increasing vehicle ownership across both passenger and commercial vehicles, expanding demand for maintenance, repairs, and aftermarket services.

  • Growth in the vehicle parc, meaning older vehicles need upkeep and replacement parts, creating a bigger base for service providers.

  • Expansion beyond metropolitan areas, as smaller cities and towns see more vehicle acquisitions, increasing the need for accessible service centers.

Key Trends Reshaping the Market

Rise of Electric Vehicle (EV) Services

With the adoption of electric vehicles rising, the automotive servicing landscape is transforming. EVs require different maintenance protocols compared to traditional vehicles, prompting service providers to acquire new skills and adopt new tools. Early movers in EV-specific servicing are likely to capture this growth potential.

Digitalization and Technology Integration

Service centers are increasingly embracing digital tools such as online booking systems, diagnostic software, telematics, and streamlined inventory and service management. This leads to improved operational efficiency and better customer experience.

Sustainability & Eco-Friendly Practices

Service providers are adopting greener practices, from using eco-friendly products to responsible waste disposal. This not only improves environmental responsibility but also appeals to eco-conscious customers.

Emergence of Multi-brand and Independent Service Providers

Many vehicle owners, especially after warranty expiry, are gravitating toward multi-brand or independent service providers for cost-effective maintenance. These providers often offer lower-cost servicing than authorized centers, making them attractive in tier-2 and tier-3 cities.

On-demand & Convenient Service Models

Busy urban lifestyles have increased demand for convenience, including mobile service units, doorstep servicing, and on-demand repairs. Service providers that offer these solutions differentiate themselves through speed and convenience.

Drivers of Demand

  • Rising vehicle ownership and growth in the vehicle parc.

  • Increasing age of vehicles leading owners to seek reliable, affordable servicing.

  • Consumer awareness of maintenance benefits, encouraging professional service center visits.

  • Regulatory support for sustainable mobility, indirectly boosting demand for compliant and EV-ready services.

  • Digitalization and ease of access, enabling consumers to find and book service centers conveniently.

Implications for Stakeholders

  • Service Providers & Workshops: Modernizing through EV maintenance training, adopting diagnostics, and digital workflows will provide a competitive advantage.

  • Vehicle Owners: Access to diverse service options offers flexibility, convenience, and competitive pricing, enhancing the ownership experience.

  • Industry & Investors: The growing market, rising demand for organized service providers, and EV penetration highlight opportunities for investment in aftermarket, spare parts supply, and service infrastructure.

Future Outlook

By 2035, the automotive service market in India is expected to cross USD 80 billion, signaling that servicing, repair, maintenance, and aftermarket services are central to the automobile ecosystem. Digitalization, EV adoption, and evolving consumer behavior will shape the market, rewarding service providers who innovate with convenience, transparency, eco-friendly practices, and high-quality offerings. Stakeholders must adapt and invest to leverage the growth potential in this dynamic market.

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