Increasing Use of Refurbished and Aftermarket Parts in Rural India

Drivers of Refurbished and Aftermarket Parts Adoption in Rural India

The widespread adoption of aftermarket and refurbished car parts in India cannot be attributed to one single reason. We’ve covered the key reasons behind their growth to give you a complete picture. 

• Cost Sensitivity

Aftermarket car parts in rural India are significantly cheaper than their OEM counterparts. The price difference is significant, at 20% to 50%. It is huge for people with limited budgets. If you purchase an aftermarket spare part from a decent brand, it will work well and save you money.

• Longer Vehicle Lifespans

People in rural areas don’t change their vehicles frequently, so it’s common to notice older vehicles on roads. Since older vehicles need frequent part replacements, car owners turn to aftermarket or refurbished spare parts for affordable, sustainable vehicle maintenance in rural India.   

• Limited Access to OEM Parts

You’ll find fewer official vehicle service centres and dealerships in rural places like Amravati and Ahmednagar than in metros like Pune and Mumbai. Getting authentic car parts delivered to rural areas is also a slow and expensive process, which is why people generally turn to refurbished car parts in India.

• Growing Number of Digital Markets

The number of digital platforms providing reliable, affordable car spares in India has increased over the years. It has resulted in a 35% increase in online sales of car spare parts in 2024 alone. These digital markets provide easy accessibility to a wide range of car spare parts, making it easier to maintain vehicles in rural India.

• Expanded Vehicle Ownership

Rural India-driven auto retail sales reported a 7.55% YoY growth in FY2025, outpacing urban growth. It indicates that more people in rural India now own vehicles compared to earlier years. This expanded vehicle ownership naturally increases demand for used-car spare parts online in India.  

• Growing Income Levels

Rural households’ average monthly income has surged 57.6% between FY2016-2017 and FY2021-2022. This increased income is enabling people living in rural areas to own and maintain vehicles effortlessly. This increase in income levels is a key reason for the growing demand for affordable car spares in India.
 

Benefits and Challenges of Using Refurbished and Aftermarket Parts

If you plan to purchase from the aftermarket or refurbished car spare parts market in India, you must be aware of the common benefits and challenges associated with them. We’ve listed both for your convenience.

Benefits –

Buying aftermarket and refurbished car parts in India is a good option for the following benefits.

• Affordability

The biggest advantage that refurbished and aftermarket car parts in rural India have over OEM is the cost benefit. They’re significantly cheaper than OEM parts, but work decently well. 

• Extended Vehicle Life

Refurbished car parts are affordable and readily available. Hence, car owners in rural India can have their vehicles repaired promptly rather than having to wait for OEM parts to arrive. It makes vehicle maintenance in rural India easier, extending the overall vehicle life.

• Environmental Sustainability

Refurbished car parts are second-hand parts which are restored to their optimal functioning through repair. They create less waste and even utilise fewer resources to manufacture new components. It significantly reduces environmental impact through circular economy practices. 

Challenges –

Aftermarket and refurbished car parts in India are tied to the following challenges.

• Quality Concerns

While most aftermarket parts work well enough, some may be counterfeit or defective. They are ineffective from the start. They may fail sooner than authentic OEM parts, especially if sourced without quality checks. 

• Lack of Certifications

Unlike OEM parts, many aftermarket car parts in rural India don’t come with a recognised certification or standard quality labels. This lack of certification makes it difficult for buyers to determine whether the car part is worth purchasing.

• Trust Issues

Many people may hesitate to choose a non-OEM car part because of past bad experiences or mixed reviews they’ve heard online.
 

Market Trends and Future Outlook for Rural India

The following points provide reliable insights into the market trends and the future outlook for both aftermarket and refurbished car parts in India.

• Market Growth Potential

The Indian automotive aftermarket was valued at USD 17.5 billion in 2024 and is expected to grow at a 8.4% CAGR from 2024 to 2030. As rural India has seen phenomenal growth in vehicle purchases over the past few years, you can expect steady demand for aftermarket and refurbished car parts. 

Furthermore, the launch of government initiatives, such as the ‘Right to Repair,’ strengthens the acceptability and demand for third-party products and repairs to maintain their vehicles. 

• Evolving Policies for Standardisation

Indian policymakers are showing a greater interest in developing frameworks to formalise repair and aftermarket parts supply. A growing demand to improve quality standards and bridge the gap between informal and organised players is gaining momentum. 

Moves such as ‘Right to Repair’ suggest that the Indian market could see new, evolving policies that standardise the quality of aftermarket car parts.   

• Eco-Friendly Car Repair Solutions

Car consumers concerned about the environment are choosing eco-friendly car repair solutions over traditional options. Hence, you can notice an increased demand for refurbished car parts in India. They require significantly fewer resources and even generate less waste. 

Additionally, purchasing these parts creates a circular economy, which is great for the environment. As people become more aware of environmental impact in the coming years, you can expect the demand for eco-friendly repair solutions to increase further.
 

Conclusion

Affordable car spares in India are becoming increasingly popular in rural areas. They’re a great alternative to OEM parts, which are both cost-effective and eco-friendly. Fortunately, they work just as well as their OEM counterparts. People living in rural regions can access a wide range of refurbished car parts in India through online marketplaces. 

If you’re unsure whether these car parts will work well or you fear they may damage your vehicle’s engine or other parts, you can handle it by securing your car under Shriram Car Insurance. Choose a Comprehensive Car Insurance with the right add-on covers for added financial security.
 

FAQs

1.Why are refurbished car parts popular in rural India?

Affordability is the biggest reason behind their popularity. They’re approximately 20% to 50% cheaper than OEM parts, yet they work pretty well.
 

2.Are aftermarket parts reliable and safe?

Yes, good-quality aftermarket parts are trustworthy. However, you should be aware of counterfeit and defective parts as they’re unsafe. They can also damage your vehicle internally.
 

3.How are online platforms changing parts availability?

Online parts make aftermarket and refurbished parts easier to find. They even deliver to remote locations, so sourcing reliable parts isn’t difficult or excessively expensive.
 

4.What government policies affect rural car spare parts?

Government policies, such as the ‘Right to Repair,’ have instilled greater confidence in relying on independent repairers and in using third-party spare car parts for car repairs.
 

5.How does using refurbished parts impact vehicle lifespan?

Using good-quality refurbished car parts can extend a vehicle’s life by making repairs affordable and sustainable. However, poor-quality spare parts can have the opposite effect.