Auto Ancillaries Rally: EV Boom, Exports & India’s Global Supply Chain Create Big Opportunity

Auto ancillaries are gaining momentum as India strengthens its position as a reliable global supplier. Asit Bhandarkar, Senior Fund Manager - Equity, JM Financial AMC, explains how geopolitical disruptions, a weaker rupee and rising exports are improving the competitiveness of Indian auto component makers. The rapid growth of electric vehicles is creating additional opportunities, while GST cuts could support demand for traditional ICE vehicles. However, the shift from ICE to EVs could also disrupt existing businesses and create risks for some suppliers. The key, therefore, is identifying companies that can benefit from new EV opportunities without significantly cannibalising their existing business.