– Auto ancillary companies manufacture components like batteries, tires, and engines for vehicles. – They play a crucial role in the supply chain, supporting both domestic and global automakers.
Why Invest in Auto Ancillary Stocks?
– Diverse Revenue Streams: Cater to multiple industries like automobiles, EVs, and exports. Global Opportunities: Strong export demand from Europe, North America, and Asia.
Top Auto Ancillary Stocks in India
– Bharat Forge: A global leader in forging, specializing in auto components and EV parts. Motherson Sumi: A dominant player in wiring harnesses and automotive mirrors.
Growth Drivers for Ancillary Stocks
– EV Revolution: High demand for components like batteries, motors, and charging systems. – Exports: India’s cost-effective manufacturing boosts global supply.
Investment Insights for Investors
– Focus on companies with strong global footprints and investments in EV technology. – Diversify across ancillary segments like batteries, tires, and engines for balanced exposure.