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.
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 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%.
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.
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.
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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