Premiumisation spells windfall gains for auto sector investors

The perception of the automobile sector among investors has undergone a tectonic shift. What was once viewed as a "necessity-driven" industry has evolved into one "fueled by aspiration." Automobiles are no longer just tools for transportation but symbols of status and lifestyle. This evolution has positioned the auto sector as a vital cog in India's consumption-driven growth story, making it an indispensable component of domestic and foreign fund managers' equity portfolios. With its wide-ranging ecosystem—spanning vehicle manufacturers, auto ancillary companies, vehicle financiers, and even listed automobile dealerships—the automobile sector offers a compelling investment narrative.

Market Capitalisation and Returns: The ...