Component by Component: How Auto Ancillaries Could Steer the Indian Stock Market in 2025 Part 2

Electric Vehicle (EV) Opportunities The transition to EVs presents a significant opportunity for auto ancillaries. The Indian EV component market is projected to reach ₹1.5 lakh crore by 2030, comprising ₹1 lakh crore from two-wheelers and ₹50,000 crore from passenger vehicles. ​ (Source:The Times of India) Currently, only 30–40% of the EV supply chain is localized, highlighting substantial potential for domestic manufacturers to increase their market share and reduce dependency on imports. ​ (Source:The Times of India,Business & Finance News India) Company-Specific Developments Minda Corporation is projected to achieve a 17% compound annual growth rate (CAGR) in revenue from FY2024 to FY2026, bolstered by new orders worth ₹2,000 crore in Q4 FY2024, with over 30% related to EVs. The company's EBITDA margins are expected to improve from 11.1% in FY2024 to approximately 12.7% by FY2026. ​ (Source:MarketWatch) Mahindra & Mahindra experienced a significant stock surge, marking its largest intraday gain in over three years, driven by a robust growth outlook. The company plans to increase its monthly SUV capacity by 50% by 2026 and invest ₹27,000 crore over the next three years in its automotive sector. Analysts anticipate strong double-digit volume growth in FY2025, supported by new product launches and a substantial order book. ​ (Source:Reuters)