India’s automotive industry is expected to remain a key manufacturing growth driver over the coming years. As vehicles become more technology-intensive, component makers stand to gain from higher content per vehicle and changing mobility trends.
From electronics and wiring systems to forgings, bearings and tyres, several auto ancillary companies are positioned to benefit from the next phase of growth.
Here are five stocks that offer exposure to different segments of the automotive value chain.
1. Uno Minda
Uno Minda has built a diversified presence across conventional and electric vehicles.
Its portfolio includes:
- Automotive switches.
- LED lighting systems.
- Alloy wheels.
- Sensors and controllers.
- Seating systems.
- EV powertrain components.
- Battery chargers.
- Advanced electronics.
The company is a market leader in categories such as switches and alloy wheels.
Growing premiumisation, stricter safety norms and rising EV adoption are expected to support demand for its products.
Why it is in focus
- Exposure to both ICE and EV platforms.
- Increasing electronics content per vehicle.
- Presence across multiple product categories.
2. Bharat Forge
Bharat Forge is among the world’s leading forging companies and supplies components to vehicle manufacturers across several markets.
Its products include:
- Crankshafts.
- Connecting rods.
- Steering knuckles.
- Front axle beams.
- Transmission components.
- Chassis parts.
- Fuel injection systems.
The company caters to passenger vehicles, commercial vehicles and tractors.
Over the years, Bharat Forge has expanded beyond automobiles into:
- Defence.
- Aerospace.
- Industrial products.
- Renewable energy.
Why it is in focus
- Strong global presence.
- High entry barriers.
- Diversified revenue streams beyond automobiles.
3. Motherson Sumi Wiring India
Modern vehicles rely heavily on electrical systems, making wiring harnesses an essential component.
Motherson Sumi Wiring India manufactures:
- Wiring harnesses.
- Connectors.
- Terminals.
- Fuse boxes.
- Electrical distribution systems.
The company supplies products mainly to passenger vehicle manufacturers.
Why it is in focus
As vehicles become smarter and more connected, wiring requirements are increasing.
Electric vehicles also require more complex electrical architectures, creating additional opportunities.
Key strengths include:
- Long-standing relationships with OEMs.
- Direct exposure to rising electronics content.
4. Schaeffler India
Schaeffler India supplies motion-control and friction-reduction products used across various vehicle segments.
Its portfolio includes:
- Engine bearings.
- Wheel bearings.
- Clutch systems.
- Transmission components.
- Industrial bearings.
- E-mobility solutions.
The company serves:
- Passenger vehicles.
- Commercial vehicles.
- Two-wheelers.
- Tractors.
Why it is in focus
Demand for high-performance components is expected to increase as vehicles become more efficient and technologically advanced.
Schaeffler also benefits from global engineering capabilities and technology partnerships.
5. MRF
MRF is India’s largest tyre manufacturer.
Its product range covers:
- Passenger vehicle tyres.
- Truck and bus radial tyres.
- Two-wheeler tyres.
- Tractor tyres.
- Off-highway tyres.
- Specialty tyres.
Why it is in focus
Unlike many auto component companies, MRF benefits from two revenue streams:
- Original equipment manufacturers (OEMs).
- Replacement demand.
The replacement market provides recurring demand, as tyres need periodic replacement throughout a vehicle’s life.
Which segments do these companies cover?
| Company | Key Segment |
|---|---|
| Uno Minda | Electronics and EV components |
| Bharat Forge | Forgings and engineered components |
| Motherson Sumi Wiring India | Wiring harnesses and electrical systems |
| Schaeffler India | Bearings and mobility technologies |
| MRF | Tyres and replacement market |
Outlook
Auto ancillary companies provide a way to participate in the broader growth of the automobile industry without depending on the performance of a single vehicle manufacturer.
Among these companies:
- Uno Minda offers exposure to electrification and premiumisation trends.
- Bharat Forge provides diversification through defence and aerospace businesses.
- Motherson Sumi Wiring India is linked to rising electronic complexity in vehicles.
- Schaeffler India has a presence across multiple mobility segments.
- MRF benefits from both vehicle production and replacement demand.
TL;DR
Uno Minda, Bharat Forge, Motherson Sumi Wiring India, Schaeffler India and MRF are among the auto ancillary companies that could benefit from rising vehicle production, premiumisation and electrification trends in India’s automotive industry.
AI Summary
- Auto ancillary companies benefit from rising vehicle content and technology adoption.
- Uno Minda has exposure to EVs and premiumisation.
- Bharat Forge has diversified into defence and aerospace.
- Motherson Sumi Wiring India is a play on growing electronics content.
- MRF benefits from both OEM and replacement demand.