Auto ancillary companies — the suppliers who make components that go into vehicles — have a structural advantage over OEMs that is not immediately obvious. An OEM grows when more vehicles are sold. An ancillary company grows when more vehicles are sold AND when the content per vehicle increases. This dual growth lever is why the best ancillaries have compounded faster than their OEM customers over a full decade.
Content Per Vehicle: The Hidden Growth Driver
Content per vehicle (CPV) is the total value of components that one ancillary supplier provides per car sold. As vehicles become more sophisticated — more electronics, safety features, comfort systems, electrification components — CPV rises without requiring more cars to be sold. Minda Industries has seen its CPV rise from ~₹6,000/vehicle in 2015 to ~₹14,000/vehicle in 2024. That is 2.3x CPV growth on top of volume growth.
Endurance Technologies: The Cleaner Story
Endurance is a focused ancillary — aluminium die castings, transmission systems, brakes, and suspension components for two-wheelers and passenger vehicles. ROCE consistently above 20% with net-debt-free balance sheet makes it one of the most capital-efficient ancillaries in India.
- Motherson revenue FY25: ~₹1,06,000 crore (global)
- Minda Industries CPV growth: ₹6,000 → ₹14,000 (2015-2024)
- Endurance ROCE: 20%+ consistently | Net debt: near zero
- EV transition impact: wiring harness CPV rises 2-3x per EV vs ICE
🔍 BBS Insight
When evaluating an auto ancillary, ask two questions: (1) What is the CPV trajectory — is the company moving into higher-value, more complex components? (2) Is the EV transition a tailwind or headwind for this specific component? For wiring harness suppliers (Minda) — EV is a massive tailwind. For exhaust system makers — EV is an existential threat. The sector label "auto ancillary" covers businesses with completely opposite EV exposures. Always go to the component level.