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- Auto Ancillary Sector Stocks in India
Auto Ancillary Sector Stocks in India
The auto ancillary industry in India is over US$ 50 bn in size as per IBEF. It's quite large and as such, is critical part of the Indian economy.
The industry is about 7.1% of India's GDP and employs about 5 million people in the country.
It's also one of the biggest exporting industries in India. The industry exports over 25% of its annual output.
India has emerged as a global auto component hub and the industry has set an ambitious export target of US$ 80 bn by 2026.
The auto ancillary eco-system in India is fairly robust and mature with a large number of companies operating in various niches. Some of these firms are world class. Within the industry, India has a competitive advantage globally in areas such as fasteners, bearings, and shafts.
India also has a labour cost advantage of about 15-20% over western nations in the global auto component market.
Government policies toward the industry over the years have been favourable. 100% FDI is allowed under the automatic route.
The recent trend towards electric vehicles had brought opportunities as well as challenges to the industry. Many firms will face a disruption in their business models while others will be relatively unaffected.
A large domestic market, solid advantages in the export market, a rising middle class in India with growing spending power, are the main driving forces of the Indian auto ancillary industry.
For a list of auto ancillary stocks in the Indian stock market please click here.
Also do read Equitymaster's auto ancillary sector report.
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The EV Revolution is a Gamechanger for this Smallcap Stock
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Exide vs Amara Raja: Which EV Battery Manufacturer Will Lead the Market?
Apr 11, 2022
Demand for EVs is growing. Thus the demand for batteries is grow too. Two established players dominate the industry. Find out which is better.
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Can this Sector be the Contrarian Investment in Your Portfolio?
Mar 24, 2022
Are auto ancillary stocks a contrarian investment at these valuations?
How to Solve the Chicken and Egg Problem in EV Stocks
Oct 28, 2021
Find out which auto ancillary stocks fall in the 'anti fragile' category.
The Go GREEN Revolution is Hazardous to these Auto Ancillary Companies
Oct 7, 2021
Find out which companies are likely to get hit by the EV revolution and how to mitigate the drawdown.
How to Play the EV Story without Actually Playing the EV Story
Aug 18, 2021
Auto ancillaries supplying to EV players will be the safe bet of the EV story.
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Jun 14, 2021
All you need to know about Sona Comstar IPO.
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Jun 8, 2021
Find out which auto ancillary stocks fall in the 'anti fragile' category.
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