Tata Motors CV, Auto Ancillaries Gain Momentum: What Is Driving The Sector’s Growth?

Tata Motors’ commercial vehicle business is showing strong momentum, with improving freight activity supporting expectations of a sustained recovery. The commercial vehicle segment could benefit further in the second half, while auto ancillaries remain well placed across OEM and replacement markets. Product innovation and rising content per vehicle are also supporting growth. Mayuresh Joshi, Head Equity Research, William O’Neil India, says the shift towards electric vehicles is creating additional opportunities across the auto value chain. Auto ancillaries with diversified product portfolios and lower balance-sheet leverage could see stronger margins, revenues and profitability.