AI Revolutionizes India's Automotive Aftermarket Industry

As the world has gotten back to its normalcy post the pandemic, the automotive industry is experiencing a paradigm shift, which has resulted in remarkable growth within the component industry. From higher demand for used cars post the lockdown to an increased usage of high technology gadgets, has only boosted the automotive aftermarket in India. The Indian aftermarket industry is projected to witness a robust compound annual growth rate (CAGR) of 8.5% from 2023 to 2028 (forecasted by RACE Innovations Private Limited), prompting the industry players to actively seek new avenues for expansion, prioritizing consumer convenience.

OEMs and aftermarket players have started paying special attention to enhancing the availability of genuine spare parts and improving service efficiency to meet the growing demand. Additionally, the aftermarket industry in India is introducing more technologically advanced products, allowing car owners to not only equip their machines with the latest gadgets, for an enhanced personality but also to make the driving experience much safer and superior.

Collaboration between manufacturers, distributors, and service providers is also on the rise, leading to streamlined supply chains and improved customer service. Additionally, the emergence of e-commerce platforms and digital marketplaces has revolutionized the way consumers purchase automotive components, providing them with greater convenience and accessibility. Embracing digitization is the key, with industry experts leveraging technologies like Artificial Intelligence, Machine Learning, Big Data, IoT, and Analytics.

Artificial intelligence, especially, is set to play a pivotal role in steering the automotive aftermarket in India towards digitalization, aligning with consumer preferences for Personalization, Automation, Connectivity, And Electrification (PACE). Innovations such as AI-powered driving assistant systems and sensors, including lane departure warning, automatic speed control, and cruise control, are set to transform the driving experience, by taking it to the next level, thereby ensuring enhanced safety. Adaptive cruise control, especially beneficial on highways, autonomously manages a vehicle's speed, acceleration, deceleration, and occasional halting based on surrounding objects.

“RACE estimates the global automotive AI market is $2.9bn in 2023 and predicted to grow at a CAGR of 33% from 2023 to reach $12.1 billion by 2028.”

Beyond car components, AI is proving instrumental in enhancing customer satisfaction for mechanics and service providers. Unlike the traditional supply chain with middlemen, consumers can now directly purchase vehicle components from Original Equipment Manufacturers (OEMs) through their websites and other marketplaces. With the post-pandemic surge in e-commerce, retailers are compelled to use an enhanced AI module to drive their sales, providing them with the necessary solutions when needed. This shift enables consumers to make faster, informed decisions, while service providers seize opportunities for cross-selling and upselling. AI's influence is thus integral in shaping the market, enhancing efficiency, and meeting evolving consumer expectations.

By utilising the previously available data, AI can predict issues with exceptional precision and speed, enabling the industry to maintain well-stocked inventories and minimize losses due to overproduction. Cognitive predictive maintenance, utilizing sensors in vehicle parts, allows technicians to assess a vehicle's health, predict operational flaws, and prevent them from escalating into major failures. Looking into the future, AI is poised to revolutionize the operations of the aftermarket industry, as it adjusts to the shifting expectations and priorities of consumers.