Introduction: the changing landscape of car maintenance in India
In recent years, Indian car owners have been shifting from a strong allegiance to OEM parts (Original Equipment Manufacturer) to a more flexible approach, mixing OEM and aftermarket parts based on specific use cases. This change reflects a larger trend toward value-based decision making, where price, trust, and part performance play a significant role in the choices consumers make.
In this blog, we will explore why car owners are increasingly selecting aftermarket parts for certain components, and what this dual-preference tells us about the current state of India’s automotive maintenance culture.
OEM vs aftermarket: a changing dynamic
In the past, car owners in India were devoted to OEM parts, believing they provided the highest quality and durability. However, the landscape has evolved. Aftermarket parts have gained significant traction, driven by multiple factors:
- Price sensitivity:
OEM parts, while often more reliable, come with a higher price tag. Aftermarket parts, on the other hand, offer significant cost savings without compromising on essential functionality. This price difference has made it more economical for car owners to consider alternatives, especially for parts that do not directly affect engine performance or safety.
ACMA (Automotive Component Manufacturers Association of India) has reported that the demand for aftermarket parts has surged due to rising maintenance costs and increasing local production of high-quality alternatives. Consumers are looking for value-driven solutions, particularly in non-safety-critical parts.
- Part-specific preferences:
Brakes: For critical parts like brakes, OEM parts are often the preferred choice, as these parts are directly linked to safety. Car owners trust OEM brakes because they align with factory specifications, ensuring optimal performance and safety.
Mirrors, bumpers, and lights: On the other hand, cosmetic parts like mirrors, bumpers, and headlights are often sourced from the aftermarket, which provides greater variety and affordability. These parts are less likely to impact overall vehicle safety or performance, making aftermarket options more attractive.
Why this shift is happening: factors driving the change
- Rising maintenance costs:
Car ownership in India is growing, with more vehicles on the road and a greater need for maintenance. As maintenance costs rise, owners are increasingly turning to affordable aftermarket options to keep their vehicles running smoothly without breaking the bank.
A report by SIAM (Society of Indian Automobile Manufacturers) highlights the rising maintenance costs, especially for OEM parts, encouraging car owners to explore aftermarket options that can reduce repair bills without sacrificing quality.
- Growing trust in aftermarket brands:
Today’s aftermarket parts are no longer seen as inferior. Many aftermarket brands offer high-quality, durable parts that are often OEM-equivalent but at a fraction of the price. Car owners are becoming more comfortable with the idea that trustworthy aftermarket parts can deliver value for money while offering similar performance.
Leading aftermarket parts manufacturers like Bosch, Mann+Hummel, and Delphi have gained substantial market trust, contributing to the growing acceptance of aftermarket parts among Indian car owners.
- Increased awareness and research:
With the rise of online platforms and user reviews, car owners now have access to more information than ever before. Online marketplaces and forums have made it easier for consumers to compare parts, check reviews, and make informed decisions about whether to opt for OEM or aftermarket solutions.
According to Google India’s Consumer Barometer (2023), 72% of car buyers conduct extensive online research before purchasing spare parts, with many choosing aftermarket solutions for non-safety-critical components based on cost-effectiveness and positive feedback from other consumers.
- Customization and variety:
Aftermarket parts offer more customization options for car owners. Whether it’s a unique bumper design or a specialized headlight style, aftermarket suppliers cater to specific tastes and preferences. This trend is especially common for cosmetic upgrades and parts that contribute to a car's aesthetics.
What does this dual preference tell us about pricing, trust, and awareness?
- Pricing:
Car owners are more price-conscious than ever, especially with rising inflation and increasing car repair costs. The fact that they are opting for aftermarket parts for non-essential components reflects a growing trend toward value-driven purchasing decisions.
The FADA (Federation of Automobile Dealers Associations) has found that nearly 45% of Indian car owners are now willing to switch to aftermarket parts for non-safety-critical components, driven by affordability and availability.
- Trust in aftermarket brands:
The shift from OEM to aftermarket for specific parts is a sign that consumers are putting more trust in aftermarket brands, particularly for parts that are not related to critical safety functions. Brands that offer warranties, reliable performance, and positive customer feedback are gaining credibility in the market.
- Awareness and research:
Car owners are no longer blindly trusting OEM parts. They are taking the time to research and compare, making decisions based on cost-efficiency, durability, and performance. This increased awareness is forcing both OEM and aftermarket suppliers to improve product offerings and engage with customers directly.
The future of OEM and aftermarket parts in India
The ongoing shift towards OEM vs aftermarket parts in India is likely to continue as car owners become more price-sensitive, informed, and demanding. While OEM parts will remain critical for certain applications like brakes and engine components, the aftermarket segment will thrive in categories like cosmetic parts, lighting, and suspension, where affordability and variety are key.
For businesses in the spare parts market, this presents an opportunity to not only offer a broad range of OEM and aftermarket parts but also provide educational content to guide consumers in making informed decisions. Hybrid solutions offering both OEM and aftermarket parts depending on the customer’s needs will likely become a growing trend in the spare parts industry.
Conclusion: the changing mindset of car owners in India
As car owners in India become more informed and cost-conscious, they are increasingly balancing OEM and aftermarket parts based on their needs. The shift towards a more flexible, price-driven approach to car maintenance signals that the spare parts market in India is evolving rapidly. By understanding this shift, businesses in the spare parts market can adapt to changing consumer preferences and offer parts that meet the diverse needs of today’s car owners.