Bosch, Samvardhana Motherson, Sona BLW: Auto ancillary stocks jump up to 8%; key details to know

Bosch shares rallied as much as 8.24% to hit an intraday high of ₹39,120 apiece on the NSE.

Among other prominent names, Samvardhana Motherson International shares were trading at ₹122.97, up 0.37%, while Bharat Forge was trading 1% higher at ₹1,480.40 on the NSE.

Sona BLW Precision Forgings was trading 3.5% higher at ₹490.95, while UNO Minda was up nearly 2% at ₹1,309.90.

The rally in the auto ancillary companies' shares could be attributed to a steady rally in automotive original equipment manufacturers (OEM) such as Maruti Suzuki India (MSIL) and M&M, among others, on encouraging December sales numbers.

Auto component industry in FY25

The Indian auto component industry recorded a turnover of ₹6,73,000 crore (US$ 78.74 billion) in FY25, registering a compound annual growth rate (CAGR) of 14% between FY20 and FY25, according to a report by the India Brand Equity Foundation (IBEF), which was last updated in October 2025.

The industry, the report added, has significantly expanded its market share, driven by rising automobile demand from the growing middle class and strong global exports. The sector has attracted both Indian and international players and is broadly classified into organised and unorganised segments.

"While the unorganised sector primarily caters to the aftermarket with low-value items, the organised sector focuses on supplying high-value precision instruments to original equipment manufacturers (OEMs)," the report adds.

The sector is projected to achieve exports worth ₹8,54,700 crore (US$ 100 billion) by 2030, underscoring its global competitiveness.

Exports in FY25

In FY25, exports stood at ₹1,95,726 crore (US$ 22.9 billion). North America remained the largest export destination with a 32% share, recording 8.4% growth, while Europe, with a 29.5% share, registered a 2.1% decline. Asia accounted for 26% of exports and witnessed robust growth of 15.1%.

The key export items included drive transmission and steering, engine components, body and chassis parts, suspension systems, and braking components.

What is the outlook?

ICRA Ratings, in its outlook for the auto sector, said that the Indian automotive industry is currently at a crossroads amidst changing consumer preferences, technological advancements and a focus on sustainability.

"The recently concluded festive season has reinforced the strong consumption base of the country, supported by favourable rural sentiments following good monsoons and firm crop prices, positive effects of the GST overhaul and interest rate cuts," said Srikumar Krishnamurthy, Senior Vice President & Co-Group Head, Corporate Ratings at ICRA Limited.

The demand sentiments are expected to remain stable in 2026 as well, with the expectation of stable economic activities.

Nevertheless, factors such as supply chain-related headwinds, softened global auto demand and higher US tariffs on exports from India are critical monitorables, Krishnamurthy added.