New Delhi, June 3 -- Grey market operators and micro enterprises in India's automobile aftermarket are facing an existential threat as consumers increasingly shift towards organized brands that are better equipped to absorb rising costs and supply disruptions triggered by the West Asia war, according to several industry executives.

At the same time, last year's GST cuts have narrowed the price gap between formal automotive spare parts and cheaper alternatives sold by unorganized players, accelerating the shift towards formal brands. Moreover, GST cuts have also sparked buyers moving to premium segments which is helping in sales of helmets and auto fluids and lubricants with a premium over local products.

At least three auto ancillary co...