Auto Advantage

Contributing 7.1% to India’s GDP, automotives are expected to go from a $126 billion industry to a $200 billion industry by 2030. That’s a CAGR of almost 15%. This is expected because the demand for vehicles is rising with:

1. The growing population of youth, and 
2. The increasing size of paychecks. 

India’s current per capita GDP is over ₹2.2 lakhs, a 60% increase since 2014 It’s a huge factor in the increasing demand for automobiles and premiumization trend in the country. 

Auto’s Growing Demand In India 

• Currently, only 8% of total Indian households own a car which shows the magnitude of opportunity available for the sector. 
• Household income has grown three times in the last fifteen years, and families with higher incomes are now demanding more vehicles than ever. 
• In FY23 alone, passenger vehicle sales grew by 27%. The segment is expected to see a 7-8% CAGR over the next five years
•  The electric vehicle (EV) market is set for even stronger growth, with an anticipated 35% CAGR until 2032.

About Our Portfolio

• The Auto Advantage portfolio is a curated combination of small auto players, a concentrated portfolio of 8-10 stocks, ideal for investors looking to have a position in the auto sector. 
• This portfolio includes auto ancillaries—companies that produce essential components for automobiles. As the industry expands, so do these companies. 
• This portfolio benefits from multiple government support initiatives - Automotive Mission Plan, FAME, and PLI schemes for auto.