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Auto Components Market Grows 11.3% in H1 FY25; Top Stocks Include Samvardhana Motherson, Bosch Ltd

Updated on: Dec 30, 2024, 5:51 PM IST
India's auto components sector grew by 11.3% in H1 FY25, driven by rising demand for passenger vehicles, two-wheelers, and electric vehicles. Exports also saw strong growth.
Auto Components Market Grows 11.3% in H1 FY25; Top Stocks Include Samvardhana Motherson, Bosch Ltd
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The Indian auto components industry has experienced impressive growth in the first half of FY25, with an 11.3% increase in market size, according to the Automotive Component Manufacturers Association (ACMA).

Valued at ₹2.98 lakh crore in H1 FY24, the industry surged to ₹3.32 lakh crore in H1 FY25. This growth reflects strong demand across multiple segments, including passenger vehicles and two-wheelers.

Demand for Utility Vehicles and Motorcycles

The demand for Utility Vehicles (UVs) in the Passenger Vehicle segment saw a notable 13% increase, with UV1 models (under ₹20 lakh) growing by 25%. Additionally, the two-wheeler market experienced a 74% rise in sales of motorcycles with engine capacities between 350cc and 500cc.

Electric Vehicle Growth

Electric vehicles (EVs) gained significant traction, with overall EV sales increasing by 22%. While electric two-wheelers (e-2W) saw a 26% growth, electric passenger vehicles (e-PVs) experienced a decline of 19%.

Strong Export Performance

Exports from the auto components sector have been robust, with a 7% increase, reaching ₹93,342 crore (USD 11.1 billion) in H1 FY25. The USA, Germany, and Turkey emerged as the top export destinations. Additionally, the industry posted a trade surplus of USD 150 million, with exports to Asia totalling USD 2.74 billion.

Performance Breakdown

  • OEM Supply: The supply to Original Equipment Manufacturers (OEMs) increased by 11.2%, totalling ₹2.83 lakh crore (USD 33.8 billion).
  • Aftermarket Segment: This sector saw a 5.0% growth, reaching ₹47,416 crore (USD 5.7 billion).
  • Imports: The industry’s imports grew by 5.3%, totalling ₹92,050 crore (USD 11.0 billion).

Top Auto Components Stocks in India

The strong growth in India’s auto components sector can present exciting opportunities for investors, with several stocks in this space benefiting from rising domestic and export demand. Here are the top 3 auto components stocks in India, based on the market cap.

Name Market Cap (₹ in crore) PE Ratio 5Y CAGR (%) 1Y Return (%)
Samvardhana Motherson International Ltd 1,18,779.70 43.73 12.34 68.24
Bosch Ltd 1,07,648.84 43.21 19.48 65.09
UNO Minda Ltd 60,259.84 68.45 43.89 59.55

Note: The stocks listed here are as of December 17, 2024.

Future Outlook of the Auto Components Sector

India’s auto components industry is expanding rapidly, driven by rising demand from the growing middle class and increasing exports.

By 2026, it is expected to contribute 5-7% of India’s GDP and create 3.2 million jobs, according to the Automotive Mission Plan (2016-26). Exports are forecasted to reach US$ 30 billion, and the industry is projected to generate US$ 200 billion in revenue.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Published on: Dec 17, 2024, 2:47 PM IST

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