Auto ancillaries: As dust of EV hype settles, time to bet on select companies? 7 auto ancillary stocks with upside potential of 3 to 30%
One sector that has been out of the news but may make a comeback both to the headlines and the narrative is the auto ancillary sector. Before you go further, it is important to understand that these companies – which could create wealth – fall into four different categories. First, companies that were quick to understand and start work on their EV transformation years back. Second, those which were late to start because their OEM itself was not clear of its EV plans. Third, companies which did not anticipate the speed at which the transition to EV would come. And fourth, those that cannot make the transition because their products are not required in EVs. There is a sub category in this fourth segment: Companies that are making adjustments to stay relevant in the EV space.
One sector that has been out of the news but may make a comeback both to the headlines and the narrative is the auto ancillary sector. Before you go further, it is important to understand that these companies – which could create wealth – fall into four different categories. First, companies that were quick to understand and start work on their EV transformation years back. Second, those which were late to start because their OEM itself was not clear of its EV plans. Third, companies which did not anticipate the speed at which the transition to EV would come. And fourth, those that cannot make the transition because their products are not required in EVs. There is a sub category in this fourth segment: Companies that are making adjustments to stay relevant in the EV space.
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