Slowdown in auto means opportunity in auto ancillary? Probably, yes. 6 auto ancillary stocks with an upside potential of up to 40%

If one looks at auto sector sales numbers, some segments are showing signs of a slowdown. November numbers were below expectations. It is not clear whether this was due to festive season sales coming early, or because, after three years of strong growth, there has been a moderation. There is another side to this story. In segments like two-wheelers, the slowdown could be the result of the EVs making inroads. We don’t know for certain yet, as these numbers are not released monthly. The bottom line is that there are many moving parts in the auto industry – and this phase of consolidation is probably an opportunity to look at auto ancillary companies. That is where the underlying transformation is taking place.