Localizing Growth, Expanding Portfolios, and Enabling the Ecosystem: How MAHLE Is Positioning for India’s Aftermarket Surge

As India’s automotive aftermarket expands in scale and complexity, companies are being challenged to rethink how they serve workshops, distributors, and vehicle owners. With rising vehicle parc growth, increasing electronic content in vehicles, and evolving customer expectations, the next three to five years will define which players can convert opportunity into sustained profitability.

In this Movers & Shakers discussion, Didem Ekiz and Arijeet Gupta outline how MAHLE is aligning portfolio breadth, localization, diagnostics capability, partnerships, and AI-driven tools to shape the next chapter of India’s aftermarket growth. Here’s the conversation they had with Ajit Swaminathan, our mobility growth expert.

The Structural Opportunity in India’s Aftermarket

Ajit Swaminathan: Looking at the automotive and mobility aftermarket over the next three to five years, what is the most important transformation MAHLE must get right to sustain profitable growth?

Didem Ekiz: Before speaking about transformation, it is important to look at the broader mega trends in India’s automotive aftermarket.

First, the vehicle-in-operation car parc in India is growing very positively, and this growth will continue over the next five to ten years. The structure of that car parc is also supportive. The largest share will remain internal combustion engines (ICEs) and hybrid vehicles, which is positive for the aftermarket.

Second, the average age of passenger vehicles in India is currently approximately seven years. That means the next five to ten years will represent a boom period for repair and maintenance demand. So, the environment is positive.

However, India is also a very cost-sensitive market. Our strategy is therefore to offer a complete product portfolio, from engine parts to filtration, thermal components, and service solution equipment, across all segments, including two-wheelers, passenger cars, commercial vehicles, and industrial applications.
At the same time, thanks to MAHLE’s technological capabilities, product development strength, and optimized supply chain management, we are able to meet the price expectations. That balance is critical.

Beyond domestic demand, export markets will also be a significant opportunity for India’s aftermarket. With the right product mix, the correct channel, and competitive pricing, we expect to grow both domestically and internationally.

Managing Complexity at the Workshop Level

Ajit Swaminathan: India now has a very heterogeneous vehicle parc. With more electronics, diagnostics, and advanced systems, complexity is rising. This also pushes the need for technician upskilling. How is MAHLE addressing this?

Arijeet Gupta: India has close to half a million workshops. Over the next four to five years, this entire landscape will need to upgrade.

Many workshops traditionally focused on mechanical systems. But vehicles now contain more electronic components and integrated systems. Workshops will need more advanced diagnostic tools and equipment.

MAHLE is participating in this journey of upgrading the workshop ecosystem. We have showcased workshop equipment and diagnostic solutions, including systems for two-wheelers. Going forward, we will introduce diagnostic equipment for additional segments.

These tools enable workshops and channel partners to upgrade themselves on the same platform. This is how we contribute to the upliftment of the workshop ecosystem.

Global Expertise, Local Execution

Ajit Swaminathan: MAHLE has strong global engineering capabilities. But India is unique. How do you localize your strategy?

Arijeet Gupta: All our strategies are built locally, whether it is product strategy, pricing strategy, channel strategy, or logistics distribution strategy. They are based on country-specific requirements.

Of course, we learn from global best practices within the MAHLE group. We adopt what works and replicate what fits the Indian model. But ultimately, our strategies are driven by Indian customer requirements.

Didem Ekiz: There will always be global support and templates. But each region is unique. We need regional and local solutions to address specific challenges.

We have already localized production across segments and product groups in India. Our supply chain, commercial teams, marketing, and pricing functions are local because we need to act quickly in a very agile market.

Recognizing India’s importance, MAHLE established India as a separate region more than a year ago. We understand that India will become even more important in the future, and we are strengthening it accordingly.

Shifting Consumer Behaviour: From Pure Price to Balanced Value

Ajit Swaminathan: What customer or market signals are reshaping your aftermarket strategy in India?

Arijeet Gupta: India has historically been extremely price sensitive. Pricing was the predominant factor in purchasing decisions.

But as disposable incomes increase, consumer awareness is rising. Customers now want quality products, and many are willing to pay more for quality.

Of course, India remains a diverse market. Some customers still prioritize price. But there is a growing segment willing to pay for high-quality products.

As MAHLE, we provide high-quality products. At the same time, given the nature of the local market, we must remain extremely competitive. We are striking a balance between quality and competitive pricing.

From Component Supplier to Systems Partner

Ajit Swaminathan: How is MAHLE’s aftermarket value proposition evolving beyond individual components toward more integrated solutions?

Didem Ekiz: Globally, MAHLE stands on three pillars:

1. Core sustainable internal combustion engine solutions
2. Thermal management
3. Electrification

Thermal management is a good example. We do not just offer products; we offer complete thermal management solutions and programs. Customers can address related issues more efficiently and proactively.

Electrification introduces more connected systems and electronic control units. Diagnostics become increasingly important. Through our workshop equipment and diagnostic capabilities, we support vehicle owners, workshops, and channel partners in managing these evolving technologies.

Protecting Brand Integrity

Ajit Swaminathan: Counterfeit parts remain a challenge in India. How are you addressing this?

Arijeet Gupta: Fortunately, it has not impacted us significantly. However, as a brand, we must protect ourselves. We use holographic stickers and technology features that cannot easily be replicated. These measures help differentiate genuine products and safeguard our brand.

Policy Reforms and a More Structured Market

Ajit Swaminathan: From a regulatory standpoint, where do you see opportunity for industry-led collaboration or policy intervention?

Arijeet Gupta: Over the past seven to eight years, India has implemented several reforms: Goods and Services Tax (GST) introduction, tax rationalization, labour reforms, and other regulatory streamlining.

These steps make doing business easier, especially for organized and branded players. The unorganized and spurious market share has reduced considerably in the past three to five years. Regulatory reforms will continue to support organized players like MAHLE.

Partnerships and India as an Export Hub

Ajit Swaminathan: How do partnerships fit into your strategy?

Didem Ekiz: Partnerships are essential. To serve our pan-India channel partners effectively, we must understand market requirements thoroughly.

The Free Trade Agreement developments between the European Union (EU) and India could also increase domestic consumption and position India as a potential export hub for global markets. Balancing domestic growth with export opportunities will be important in the coming years.

Portfolio Expansion and Market Consolidation

Ajit Swaminathan: India is a large but fragmented market. How are you thinking about growth beyond existing product categories?

Didem Ekiz: Both organic and inorganic growth will happen. The MAHLE brand is well accepted in the independent market. Distributors, wholesalers, retailers, and mechanics want to reduce purchasing complexity. As the market consolidates, there will be demand for multiple product groups under one strong brand. We will leverage this opportunity to offer more than what we currently provide.

Arijeet Gupta: In India, we have a very strong distribution network with more than 800 points. Our brand is strong, our channel partners are strong, and our portfolio is solid. Going forward, we will introduce additional product categories and expand our offering further.

AI and Intelligent Operations

Ajit Swaminathan: Do you see AI impacting MAHLE’s business?

Didem Ekiz: Definitely. We are at the beginning of that journey. AI is being used in research and development, in new product offerings, and in optimizing supply chain management and warehouse operations. We will continue investing in these areas because AI represents the future.

Arijeet Gupta: In India as well, we are deploying AI-driven dashboards and management systems. We intend to extend these tools to our distribution partners to enhance communication and operational efficiency. AI is not something we can stay away from. It will touch every aspect of our business.

Looking Ahead

India’s automotive aftermarket offers one of the strongest growth trajectories globally. A growing vehicle parc, aging vehicles entering peak maintenance cycles, rising consumer quality awareness, regulatory reforms, and increasing consolidation create a powerful opportunity landscape.

MAHLE’s response is structured and deliberate:

• Complete portfolio coverage across segments
• Localization of strategy and execution
• Workshop enablement through diagnostics
• Balanced pricing with uncompromised quality
• Brand protection through authentication measures
• Leveraging regulatory reforms
• Expanding through organic and inorganic growth
• Integrating AI into operations

India is no longer just another market. It is a strategically prioritized region within MAHLE’s global structure. The next five years will reward companies that combine global expertise with local agility. MAHLE is positioning itself to do exactly that.