Auto Stocks in Gear: Forecasting India's Automobile Sector Growth for 2025 Part 2

Electric Vehicle (EV) Segment Government has reduced customs duties on EV batteries and raw materials to boost EV adoption. Source: Planify EV penetration in two-wheelers remains between 4–7%, may rise to 10% by FY27. Source: NDTV Profit Auto Component Industry Revenue growth expected to slow to 5–7% in FY25 from 14% in FY24. Source: Business Standard ₹20,000–25,000 crore in investments expected in FY25 supported by PLI schemes. Source: Business Standard Stock Market Performance Mahindra, Eicher, and TVS named top picks for 2025 with 13–15% CAGR projected. Source: NDTV Profit Nifty Auto index outperformed Nifty 50 with 23% YTD gains compared to 9.2%. Source: Upstox Challenges and Considerations Urban consumption slowdown could restrict PV growth. Source: Business Today Export challenges due to new U.S. tariffs may impact component sector. Source: Economic Times Auto EV adoption hindered by product confidence and resale concerns despite subsidies. Source: NDTV Profit