Future Prospects for Auto and Ancillary Sector

I have substantial investments in the auto and auto ancillary sectors. I’m pleased to see the impressive uptrend in auto stocks and the growing optimism surrounding the Hyundai Motor India IPO. Could you provide insights on the future trajectory of the auto and auto ancillary industries? - Nikhil Dwivedi

Editor Responds: The BSE Auto Index, which tracks automobile and ancillary companies, has demonstrated strong performance even amidst the market uncertainties surrounding the recent election period, delivering an impressive 36 per cent return year-to-date. The resilience of the auto sector has been driven by several key factors including urbanisation, rising disposable incomes, the adoption of electric vehicles (EVs) and hybrid technology, subsidies and tax incentives for EVs, the integration of AI and IoT for smart and autonomous vehicles, and the growth of the aftermarket services and parts sector. The government’s “Automotive Mission Plan 2047” is a significant stride for the industry, serving as a forward-looking initiative that signals the government’s commitment to establishing a clear roadmap for bolstering domestic automobile and component manufacturing. Simultaneously, it aims to enhance the sector’s contribution to exports. All these developments have created a need for guidance and strategic direction. Our upcoming edition will delve into the auto and ancillary industry, providing in-depth insights. Stay tuned!