Will auto sector outperform Nifty 50 again in 2025? Experts weigh in
Live MintThe auto index has been a standout performer in 2024, significantly outpacing the benchmark Nifty. A Strong Performance In the past year, the auto index has climbed 34 per cent, almost double the Nifty's 17 per cent rise. Industry experts weigh in on the potential growth drivers and challenges that could shape the sector’s trajectory in the coming year, offering insights into key segments such as two-wheelers, passenger vehicles, and the growing influence of premiumisation and EV adoption. Growth Drivers: Premiumisation and Rural Demand Several industry experts are optimistic about the sector’s prospects, particularly in the two-wheeler and passenger vehicle segments. Jathin Kaithavalappil, Assistant Vice President at Choice Broking cited potential inventory build-ups, rising input costs, and supply chain disruptions as challenges that could limit the sector’s relative performance against broader market trends.