Auto ancillary companies can be put into four categories. First, those that were quick to understand and start work on EV transformation years back, even before auto majors announced their plans. Second, companies that were late because the OEM they supplied was itself not clear about its EV plans. Third, companies that were not able to anticipate the speed at which EV transition would happen. Fourth, companies that cannot make the transition because their products are not required in EVs. In the last two years, as OEMs have firmed up their plans, clarity is emerging on which of the auto ancillaries will emerge winners and be re-rated for the long term.
