India's automobile sector is experiencing a massive growth cycle, with the Nifty Auto Index significantly outperforming the Nifty 50 over the past five years. This video deep dives into three companies that have recently touched all-time highs, exploring the key drivers behind their success and the risks they face.
What you will discover:
• Market Momentum: India's overall vehicle sales are surging, supported by a favorable GST structure for affordable vehicles and EVs.
• The Powerhouse: Analysis of a diversified OEM (Original Equipment Manufacturer) leading the SUV, Light Commercial Vehicle (LCV), and Tractor markets, reporting robust sales and profit CAGR. This company is aggressively leveraging a large CapEx plan to become a market leader in the rapidly growing 4W-EV space.
• The 2W/3W Champion: Review of a company that achieved its highest-ever quarterly sales, outperforming the industry in motorcycles and scooters. Its strong performance is fueled by surging international exports and market leadership in the high-speed E-2W segment, despite facing margin drag from strategic, loss-making subsidiaries.
• The Component Leader: Examination of a component manufacturer dominating the domestic market (with roughly 30% unit share), largely supported by stable replacement demand. However, recent financials show pressure from rising raw material costs and extended working capital cycles.
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Research Analyst disclaimer: https://groww.in/p/sebi-research-analyst-regulations
Name of the Research Analyst - Cleyon Savio Dsouza
Name of the narrator - Aleena Rais
Report Date: 25th September 2025