In the first half of FY25 alone, the automotive components industry grew by 11 percent YoY, touching Rs. 3.32 lakh crore ($38.4 billion). With the rising global demand, the sector is expected to grow to $200 Billion by FY26.
India is emerging as a global sourcing hub for auto components, exporting more than 25 percent of its production annually. These exports are expected to touch $80 billion by 2026, making India a key player in the global supply chain.
Back home, the two-wheeler segment continues to dominate, driven by the preferences of India’s growing middle class. In FY24, automobile sales reached 23.85 million units, underscoring the sector’s strong domestic demand.
Looking ahead, the industry is gearing up for the future with plans to invest around Rs. 58,000 crore ($7 billion) by FY28. The focus is on localising advanced components like electric motors and automatic transmissions — a strategic move to cut import dependency and leverage ‘China Plus One’ wave.
The industry’s economic impact is significant — it currently contributes 2.3 percent to India’s GDP and provides direct employment to over 1.5 million people. By 2026, that contribution is expected to rise to 5-7 percent of GDP, with the Automotive Mission Plan (2016-26) aiming to create an additional 3.2 million jobs.
As the Indian automotive components industry moves toward its $200 billion target by FY26; Here are a few auto ancillary stocks to watch in this evolving sector:
Sona BLW Precision Forgings Limited
With a market cap of Rs. 29,805.16 crores, the stock was down by around 0.27 percent on BSE to close in the red at Rs. 479.40 on Friday. Sona BLW is engaged in the manufacturing of precision forged bevel gears and differential case assemblies, conventional and micro-hybrid starter motors, EV traction motors, etc., for automotive and other applications.
Sona BLW is riding high on a strong order pipeline, with a net order book of Rs. 24,200 crores— that’s 6.8 times its FY25 revenue. In Q4 FY25 alone, the company bagged fresh orders worth Rs. 1,700 crores.
Of this entire order book worth Rs. 24,200 crores, EV-related orders make up a massive Rs. 18,700 crores, or 77 percent of the total order book, while the remaining Rs. 5,500 crores (23 percent) come from the non-EV segment.
Gabriel India Limited
With a market cap of Rs. 9,633.48 crores, the stock moved up by around 1.65 percent on BSE to close in the green at Rs. 670.65 on Friday. Gabriel India is the flagship company of the ANAND Group and a leading auto component manufacturer.
Gabriel India specialises in producing a diverse range of ride control products, including shock absorbers, struts, and front forks, serving various business segments, including two and three-wheelers, passenger vehicles, commercial vehicles, railways, and the aftermarket.
As of May 2025, the company commands a 30 percent market share in 2W/ 3W, including aftermarket sales, and holds a solid 24 percent share in the passenger vehicle segment. Most impressively, it dominates the commercial vehicle space with an 88 percent market share, which also includes aftermarket and railway segments.
Uno Minda Limited
With a market cap of Rs. 63,645.99 crores, the stock moved up by around 2.59 percent on BSE to close in the green at Rs. 1108.50 on Friday. Uno Minda is engaged in the business of manufacturing auto components, including lighting, alloy wheels, horns, seating systems, seatbelts, switches, sensors, controllers, handlebar assemblies, wheel covers, etc. It serves both 2-wheelers and 4-wheelers markets and domestic & international markets.
Under the umbrella of its EV product portfolio, Uno Minda provides a wide range of products, including BMS, on-board chargers, off-board chargers, RCD cables, body control modules, smart plugs, telematics, and sound boxes. On the global front, the company exports to six key regions: SAARC, ASEAN, the European Union, Latin America, the Middle East & North Africa (MENA), and Africa.
Banco Products (India) Limited
With a market cap of Rs. 8,439.20 crores, the stock moved up by around 0.33 percent on BSE to close in the green at Rs. 590.00 on Friday. Banco Products (India) Limited is engaged in the business of manufacturing and selling of heat exchangers/cooling systems, serving both the domestic and international markets. It is a leading designer and manufacturer of engine cooling modules for automotive, off-highway and industrial applications.
The company’s product portfolio includes engine cooling modules such as radiators, charged air coolers, fuel coolers, oil coolers for various applications, AC condensers, de-aeration plastic tanks, metal layered gaskets and elastomeric moulded gaskets for static sealing applications.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Auto ancillary stocks to watch as automotive components industry Is set to reach $200 Billion by FY26 appeared first on Trade Brains.