India's Auto Parts Boom: EVs and Alloys Drive Growth

India's auto ancillary sector is experiencing a significant growth opportunity, primarily fueled by the increasing demand for premium vehicle components and electric vehicle (EV) parts. Industry forecasts suggest the domestic auto component market will expand at an annual rate of 7-8% between FY25 and FY30, surpassing the broader automotive industry's growth.

The transition to electric mobility is a key driver, with EV sales rising by 30% in FY26 to 26.6 lakh units, representing 8.6% of total vehicle sales. This shift is prompting a focus on lightweight materials, benefiting segments like automotive wheel manufacturing.

Steel Strips Wheels (SSWL) and Wheels India are two major players capitalizing on this trend. SSWL reported a 208.3% profit increase in Q2FY27, with its revenue mix shifting towards higher-margin alloy wheels. Wheels India also saw an 87.5% profit surge in the same quarter, driven by increased demand for its automotive and industrial parts.

Both companies are expanding their capacities. SSWL is increasing its alloy wheel capacity and establishing a new greenfield facility. Wheels India is scaling up its alloy wheel production and aims to capture a larger share of the Indian cast aluminium wheel market. Their stock performance has been strong, with both shares delivering significant returns in 2026.