Auto stocks to benefit after government considers ₹13,000 crore incentive for auto components

Synopsis:
Stocks like Sona BLW, Endurance Technologies, Exide Industries, PG Electroplast, etc, are in focus after sources indicate that the Government is eyeing to deploy a 13,000 crore package in two incentive plans.

According to sources, to ramp up large-scale domestic manufacturing of auto parts and cut down on import reliance, the government is rolling out a new incentive package worth Rs 13,000 crore for the auto component sector. 

This initiative will stand apart from the current Production-Linked Incentive (PLI) scheme and will include the entire supply chain.  According to a NITI Aayog report published in April 2025, the plan is designed to provide both fiscal and non-fiscal incentives.

On the fiscal side, support will cover operational expenses, skill development, research and development, branding incentives, and the development of clusters for shared facilities like testing centers. 

Meanwhile, the non-fiscal incentives will aim to promote Industry 4.0 technologies, foster global partnerships, and enhance the ease of doing business. The ultimate goal is to boost India’s share in the global auto component market from 3 percent to 8 percent by 2030.

As India pushes forward with its electric mobility mission, several auto ancillary companies are becoming vital to the EV ecosystem by supplying critical components and technologies. 

Exide Industries and Amara Raja Batteries are leading the energy storage segment, focusing heavily on lithium-ion battery production to power electric vehicles. Their efforts are key to reducing dependence on imports and ensuring a stable battery supply for domestic EV makers.

On the drivetrain and power electronics side, Sona BLW Precision Forgings plays a significant role by supplying high-precision components such as electric motors, gear systems, and differential assemblies.

Meanwhile, Endurance Technologies and Minda Corporation are developing key electronic systems, including battery management systems (BMS), DC-DC converters, and onboard chargers, all of which are essential for safe and efficient EV operation.

In the electronics and structural components segment, PG Electroplast manufactures printed circuit boards and wiring harnesses used in EVs, while Sandhar Technologies contributes structural parts like battery trays and motor mounts. Even Kopran Ltd., traditionally known for its pharmaceutical business, is making strides by supplying specialty chemicals used in lithium-ion batteries.

Together, these companies are well-positioned to capitalise on India’s EV boom, forming the backbone of a self-reliant and future-ready EV component industry.

Written by Satyajeet Mukherjee

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