Indian Automobile Sector 2025-2030 — The Premiumisation Shift Rewriting Indian Auto Valuations
Indian Auto Sector Outlook (2025-2030) The sector is structurally shifting from volume growth to premiumisation and exports. SUVs now dominate (55% share), and feature-rich vehicles are boosting margins. Key Trends: Two-wheeler and three-wheeler EV adoption will be high (70-80%), while passenger vehicles will see slower EV uptake (15-20%), with hybrids bridging the gap. Government policies (PLI, China+1) strongly favor component exporters. Top Picks: Mahindra & Mahindra: Top growth pick for its SUV dominance and EV roadmap. Auto Ancillaries (Bharat Forge, Sona BLW, Motherson): High-potential bets on exports and tech. Maruti Suzuki: Defensive bet for its hybrid strategy. Strategy: Focus on SUV makers and global component suppliers; avoid traditional mass-market volume players.