Nippon Paint India targets 25% annual growth in automotive aftermarket segment

Nippon Paint India aims to achieve 25-26% annual growth in its automotive aftermarket business over the next two to three years. The company is focusing on expanding its presence in paint protection films (PPFs), car care products, dealership networks, and OEM-linked aftermarket opportunities.

This growth target is higher than the current 18-20% growth trajectory. Nippon Paint expects the increasing vehicle population, greater consumer focus on vehicle protection, and the rise of new product categories to drive this expansion.

Key Highlights

• Nippon Paint India targets 25-26 percent annual growth in the automotive aftermarket over the next two to three years.
• Paint protection films and e-commerce-led car care products are identified as key growth drivers.
• The company's automotive refinish business has grown nearly 20 percent annually in the past three years.
• PPFs are expected to see rapid adoption as consumer awareness and dealership participation increase.

Growth Drivers in the Aftermarket

India's automotive refinish industry has seen strong momentum since the pandemic, supported by a growing vehicle park and rising demand for repair and appearance-enhancement solutions. According to Jenender Anand, Vice President of the Automotive Refinish Business at Nippon Paint India, the country's vehicle park is expanding by 6-8% annually. The auto refinish industry has recorded a compound annual growth rate (CAGR) of about 14-15% over the past three years. Nippon Paint's automotive refinish business has outperformed the market, growing at nearly 20% during the same period.

The automotive refinish segment, once mainly focused on collision repair and repainting, is now evolving into a broader vehicle-care ecosystem. Nippon Paint is expanding beyond coatings into adjacent categories such as PPFs, ceramic coatings, detailing solutions, and consumer-focused car care products. Anand stated that the company aims to be a complete solution provider, not just a coatings supplier.

Currently, the auto refinish business accounts for close to 20% of Nippon Paint India's overall business, making it a key growth vertical. Among new categories, PPFs are expected to be one of the fastest-growing segments. PPFs are transparent films applied to painted surfaces to protect vehicles from scratches, stone chips, weathering, and UV damage. Although the PPF market in India is still small, consumer awareness and dealership participation are increasing. Anand noted that even 100% growth in this category would be a conservative estimate.

Product Expansion and New Channels

Nippon Paint offers PPF solutions under its EnShield brand, with products available in multiple warranty categories. The company has also introduced headlight films and customized solutions and is expanding its EnShield Studio network nationwide. Industry participants see PPFs as a significant aftermarket opportunity due to their high value per installation and growing acceptance among vehicle owners seeking long-term paint protection.

Alongside PPFs, Nippon Paint is investing in e-commerce as a major growth driver. The company recently launched FX10, a dedicated e-commerce car care brand. FX10 offers products such as shampoos, ceramic coatings, waterless wash solutions, rat repellents, tyre shiners, dashboard cleaners, and scratch-removal products. Anand stated that the DIY vehicle-care market in India is underpenetrated but expected to grow as consumers become more comfortable buying maintenance products online. Nippon Paint already sells through major online platforms and sees rising demand from urban consumers for convenient vehicle-care solutions.

The company also expects network expansion and greater OEM penetration to support growth. Nippon Paint works with OEMs, dealerships, distributors, body shops, and detailing centers across the automotive ecosystem. It continues to invest in training and technical support. Anand highlighted sustainability as an important growth factor, with a shift toward greener products, low-VOC coatings, and water-based paints. As regulatory expectations change and customers focus more on environmental performance, suppliers with sustainable technologies are likely to gain an advantage.

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CarBike 360 Says

Nippon Paint India’s aggressive growth target reflects strong confidence in the expanding automotive aftermarket landscape. With rising vehicle ownership, increasing repair demand, and a focus on advanced coating solutions, the company is well-positioned to capitalize on emerging opportunities.