First it was auto companies like Tata motor & TVS motors which were re-rated due to their EV venture. Then as the time went, stocks like Bajaj Auto and Hero honda also joined the re-rating bandwagon. But the re-rating of the auto ancillary industry has been slower, for a valid reason. These auto ancillary units are dependent on their main buyers. So, for an auto ancillary company which has been supplying to the TVS motors, Tata motors the process of transformation started a long time back but for some others, where the major buyer which is the auto companies was late in coming out with the EV model, transition has been slower. But the biggest factor which distinguishes a winner and laggard in the auto ancillary industry is how proactive the management has been of auto ancillary companies in anticipating the demand and changing its priority. Some are able to do better than others.
