Samvardhana Motherson to Bosch: Experts bullish on these six auto stocks; here’s why | Stock Market News
Shares of Uno Minda, Bosch, Mareli, TVS Group, Motherson Sumi, and Sona Comstar are in focus following reports that Indian firms are working to create domestic rare earth magnet supply chains due to restrictions on exports from China.
As reported by ET Online, Indian companies are increasing efforts to develop local rare earth magnet supply chains in response to China’s export limitations. Midwest Advanced Materials, Entellus Industries, and IREL have submitted proposals to the government, with the goal of minimizing dependence on imports from China.
The government is contemplating incentives to bolster local production, addressing the auto industry’s worries about supply timelines, as indicated in the reports.
According to a report from ET Online, businesses have informed the government that magnet manufacturing in India has been inactive for the last twenty years due to an influx of low-cost imports from China. “Industry representatives urged the government to assist companies in establishing magnet production by offering incentives and financial benefits,” stated the ET Online source, as indicated in the report. The automotive sector has also requested that new local manufacturers provide specific timelines for supply, emphasizing that their production processes heavily depend on swift procurement.
Rare earth magnets are essential for permanent magnet synchronous motors (PMSMs), which are extensively utilized in electric vehicles due to their compact design, high torque, and energy efficiency. Hybrid vehicles similarly rely on these magnets for effective propulsion.
Avinash Gorakshakar SEBI registered fundamental equity analyst said that there are reports that the government of India (GoI) has unveiled the ₹3500 to ₹5000 crore PLI Scheme for rare-earth magnet manufacturing. This move is aimed at benefiting auto and metal companies. There are reports that Uno Minda, Bosch, Mareli, TVS Group, Motherson Sumi, and Sona Comstar have shown interest in rare-earth magnet manufacturing. So, if the report comes true, these auto stocks are expected to show sharp upside movement in the near term.
