Indian Auto Ancillaries Soar in 2025: Premiumization, EVs, Acquisitions Fuel Breakout Growth

• Indian auto ancillary sector experienced breakout growth in 2025, with companies like Lumax Auto Technologies and SJS Enterprises becoming multibaggers.
• Growth driven by increasing premiumization of Indian auto, leading to higher content per vehicle (CPV) with features like sunroofs, ADAS, and LED lighting.
• Rising EV penetration and import substitution of components, supported by OEMs and PLI incentives, created new opportunities for Indian ancillaries.
• Strategic acquisitions of established Indian assets from European majors at attractive valuations, exemplified by LATL's IAC India and SJS's Walter Pack India deals.
• Economic tailwinds including IT/GST cuts, RBI rate cuts, and strong rural demand boosted auto sales from October 2025, sustaining growth momentum.

Why It Matters: Multiple structural tailwinds propelled Indian auto ancillaries to breakout growth in 2025, promising continued strong performance.