GVSRwealth

#GVSRwealth: Investing Perspectives : Automotive Sector – India – Dated 10-05-2023 With respect to stock markets, the Automotive Sector in India has a weightage of about 6% (on a weighted market cap basis) in the broader Large-Cap Index N50. Automotive sector in India can further be broadly classified into (i) Automobiles and (ii) Auto Ancillary segments, respectively. Indian Automotive Sector accounts for about 7% of India’s GDP and about 50% (approx.) of India’s manufacturing GDP. The Auto-ancillary segment in India has come off the age and is emerging as a global hub for manufacturing and export of auto-components. For example , India exports about 25% of its auto-component production, which reflects its export competitiveness on account of low-cost of production, JV tie-ups with global players in the industry etc. Whereas ‘automobile segment’ is likely to shift to EVs, providing fresh growth opportunities to select players in the   2-wheeler and 4-wheeler industry in In...