The Indian auto ancillary sector is integral to the country’s automotive industry as well as to overseas Original Equipment Manufacturing (OEM) companies. This comprises numerous companies supplying components and services to vehicle manufacturers which plays a significant role in the supply chain. Certain companies can maintain their competitive advantage over others through operational efficiencies, product quality, and first-mover advantage.
In FY24, the market was valued at ~ Rs. 6.14 trillion, with a projected CAGR of 10.67 percent from FY25 to FY29 as per GlobeNewswire. However, a recent report by ICRA expects unfavorable movements in foreign exchange rates and commodity prices and benefits from higher operating leverage, content per vehicle, and value addition with operating margins to stay in the 11 to 12 percent zone for FY25 and FY26.
Despite these challenges, the sector is poised to benefit from the expanding electric vehicle (EV) market and increased localization efforts and some companies can continue to be leaders in their specific segments.
Listed below are Market Leader Auto Ancillary stocks with their expertise in their segment.
Wheels India
Wheels India Limited, a part of the TVS Group, is one of the world’s largest manufacturers of steel, aluminum, and wire wheels. It caters to the automotive, construction, and agricultural sectors globally. With a production capacity exceeding 12 million wheels annually.
The company has a market share of 76 percent in the light commercial vehicles segment, 52 percent in the Tractor segment, followed by 36 percent in medium & heavy commercial vehicles, and 34 percent in passenger vehicles as of H1FY25 as per a recent ICRA report.
With a market capitalization of Rs. 1,500.06 Crores, the shares of Wheels India Limited closed at Rs. 613.95 per equity share, down 0.03 percent from its previous day’s close price of Rs. 614.15.
Gabriel India
Gabriel India Limited, founded in 1961, is a flagship company of the ANAND Group and a leading manufacturer of ride control products like shock absorbers, struts, and dampers.
It serves diverse automotive segments, including two-wheelers, passenger cars, commercial vehicles, railways, and exports to six continents. The company has a market share of 88 percent in the commercial vehicles (including. Railways and Automotive Manufacturing) segment.
With a market capitalization of Rs. 8,457.76 Crores, the shares of Gabriel India closed at Rs. 588.80 per equity share, up by 0.58 percent from its previous day’s close price of Rs. 585.40.
Lumax Auto Technologies
Lumax Auto Technologies Ltd. is a leading automotive component manufacturer in India. It offers a diverse product portfolio, including lighting systems, gear shift levers, chassis, and telematics solutions, catering to 2W, 3W, and 4W segments. With 27 manufacturing facilities and partnerships with global leaders.
It serves major OEMs like Maruti Suzuki, Hero MotoCorp, and Mahindra. Through its subsidiary, Lumax Mannoh, it holds a market share of 80 percent in manual gear shifters as per sources.
With a market capitalization of Rs. 3,777.30 Crores, the shares of Lumax Auto Technologies Limited closed at Rs. 554.20 per equity share, up 3.45 percent from its previous day’s close price of Rs. 535.70.
Written by Santhosh S
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