Auto ancillary stocks are growing due to rising vehicle demand, premiumisation, exports, and higher content per vehicle. Companies expanding capacity, entering new technologies, or winning global orders may deliver faster revenue and profit growth.
They also offer exposure to India’s manufacturing push and long-term automotive transformation trends.
Here are three auto ancillary stocks with strong expansion plans.
#1 Uno Minda
Uno Minda is a leading Indian auto-components maker supplying lighting systems, switches, alloy wheels, EV parts, sensors, seating, electronics and more to major OEMs.
According to an investor presentation on 16 May, Uno Minda is setting up a state-of-the-art greenfield manufacturing facility in Chhatrapati Sambhajinagar, Maharashtra for high-voltage electric powertrain products for four-wheeler passenger vehicles. This is the second EV powertrain plant in quick succession, following the ongoing setup of its facility in Khed City.
The EV products include electric drive units (EDU) and dedicated hybrid transmission (DHT) systems. The EDU will be supported by its technology partner Inovance Automotive.
The DHT on the other hand will be assembled and manufactured through strategic partnership with customers. The project involves a total estimated investment of ₹550 crore.
The list above is not exhaustive as the company has outlined more expansion plans.
Consolidated revenue for FY26 rose 17% YoY to ₹19,589 crore, while net profit jumped 24% YoY ₹1,166 crore.
During Q4 FY26 the company achieved record sales in its 2W Switch and 2W Light business. Uno Minda also saw a sizable order for Android-based Infotainment (IVI) platform of ₹600 crore annual peak value.
It also secured a large order for 2W Lamps to the tune of ₹450 crore annual peak value, which represents 25% of current annual revenues from 2W Light.
The company is benefiting from premiumisation, rising electronic content in vehicles, EV adoption, and strong localisation trends. Its joint ventures and capacity expansion plans support long-term growth.
However, auto-cycle slowdowns, raw material volatility, and execution risks in new businesses remain key factors to monitor.
#2 Samvardhana Motherson International
Samvardhana Motherson International is one of India’s largest auto component manufacturers and a major global supplier to major automobile companies.
It manufactures wiring harnesses (vehicle electrical systems), rear-view mirrors and camera systems, plastic interior and exterior parts, cockpit modules, dashboards and door panels. The company has been expanding rapidly over the years and continues to do so.
The list above is not exhaustive as the company has outlined more expansion plans.
In Q3 FY26 Samvardhana Motherson International reported revenue of ₹31,409 crore, up 14% YoY. Ebitda was up 10% YoY at ₹3,042 crore. Net profit rose 21% YoY to ₹1,061 crore.
It continued to demonstrate volume growth across PVs and CVs in emerging markets during the quarter, which was offset by mix-led softness on PV in developed markets.
Samvardhana Motherson International appears well-placed for long-term growth due to its aggressive global expansion, diversification beyond automobiles, and rising presence in electronics, aerospace, logistics, and semiconductor-linked manufacturing.
The company has a sizable capex, with greenfield plants. New lighting facilities, PLI-backed electronics investments, and global logistics JVs could strengthen scale and margins.
#3 Endurance Technologies
Endurance Technologies is one of India’s leading auto-component manufacturers. It mainly supplies parts to two-wheelers, three-wheelers, and passenger vehicles for major OEMs in India and Europe.
Its core businesses include aluminium die-casting components and alloy wheels, suspension systems like shock absorbers and front forks, braking systems including ABS and disc brakes, transmission products such as clutches and CVT assemblies and embedded electronics and battery-management systems for EVs.
Like many other auto ancillary companies, it is expanding.
In FY26, the company won business orders in India worth ₹1,596 crore, including ₹300 crore for battery packs. It also has won business worth 16 million euros in Europe. The order book is expected to be boosted further with ₹5,100 crore of requests for quote (RFQs) under discussion with various customers.
Endurance Technologies has strong long-term prospects as it is transitioning from a traditional two-wheeler auto ancillary company into a diversified EV, braking, alloy wheel, and electronics-focused mobility supplier.
The company is doing well due to rising premium motorcycle demand, increasing safety regulations like mandatory ABS, and rapid EV adoption in India.
Investors should evaluate a company's fundamentals, corporate governance, and stock valuations before making an investment decision.
Happy investing!
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com