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.
Oct 15, 2024
Traditional companies in auto ecosystem could pivot to a profitable EV future.
Sep 22, 2024
With the government's increased attention on auto ancillary exports, let's look at the top 5 stocks in this sector.
Sep 1, 2024
These five automotive component stocks offer promising growth opportunities, driven by the robust Indian automotive market and the global trend towards electric vehicles.
Aug 14, 2024
Traditional companies in the auto ecosystem could pivot to a profitable EV future.
Apr 14, 2024
Nemish Shah, the man who took Infosys public, holds around 7.2% stake in this company.
Dec 21, 2023
According to the latest bulk deal data, Sunil Singhania recently acquired a substantial stake in this auto-ancillary stock.
Nov 24, 2023
Munjal Auto is on a winning streak of hitting new 52-week highs in the last five trading sessions.
Nov 10, 2023
This midcap company is making the most of the disruption in the automobile sector.
Nov 6, 2023
From grey market premium to price band, here's everything you need to know about one of the leading auto ancillary players.
Aug 25, 2023
This microcap stock has rallied over 50% in the past five days. Apart from Kacholia's bullish stance, what's driving the rally?
Oct 15, 2024
In a surprising stance, the ace investor has doubled down on this stock.
Sep 4, 2024
These two fundamentally strong stocks can thrive in the era of electric vehicles.
Aug 27, 2024
Hero Motors, India's e-bike tech leader, independent of Hero MotoCorp, gears up to transform the auto ancillary space.
Apr 22, 2024
Tesla diversifies its supply chain with second Indian EV partnership. What next?
Jan 10, 2024
Find out why the seasoned investors turned bearish on this multibagger stock despite robust earnings.
Nov 30, 2023
Three reasons why Rekha Jhunjhunwala acquired 90,006 shares of this company via a bulk deal on 29 November 2023.
Nov 17, 2023
This industry is poised for significant growth in the coming years, especially in 2024 with elections just around the corner.
Nov 9, 2023
The company makes a wide range of aesthetic products catering to segments including two-wheelers, passenger vehicles, commercial vehicles, consumer durables, and appliances.
Sep 22, 2023
Rekha Jhunjhunwala recently picked up additional stake in this multibagger realty company. What's brewing?
Jul 7, 2023
Shares of this auto ancillary firm are up over 90% in the past three months. A healthy order book suggests the company is all set to win the race against its peers.