Impact of India on Automotive Sector, 2021 Update - Thematic Research

• Ever since the term BRIC was coined by a Goldman Sachs banker in 2001 expectations for India’s economy and automotive industry were lifted.
• However, while China’s economy and industry has rocketed in the past decade, India has flickered into life sporadically. Just as its automotive market was building momentum between 2015 and 2019 H1, the country’s economy floundered and sent automotive sales into a tailspin. Worse was to follow in 2020 with the onset of the COVID-19 pandemic with India severely affected. Then, in 2021, just as the outlook was brightening India was the epicenter of the Delta variant of the coronavirus that has since roiled countries worldwide.
• Furthermore, just this September Ford followed GM in announcing its departure from the Indian market after a couple of decades of struggling to turn a profit.

Scope

• This report is part of our ecosystem of thematic investment research reports, supported by our “thematic engine”.
• the publisher has developed a unique thematic methodology for valuing technology, media and telecom companies based on their relative strength in the big investment themes that are impacting their industry. Whilst most investment research is underpinned by backwards looking company valuation models, the publisher’s thematic methodology identifies which companies are best placed to succeed in a future filled with multiple disruptive threats. To do this, the publisher tracks the performance of the top 600 technology, media and telecom stocks against the 50 most important themes driving their earnings, generating 30,000 thematic scores. The algorithms in the publisher’s “thematic engine” help to clearly identify the winners and losers within the TMT sector. Our 600 TMT stocks are categorised into 18 sectors. Each sector scorecard has a thematic screen, a risk screen and a valuation screen. Our thematic research ecosystem has a three-tiered reporting structure: single theme, multi-theme and sector scorecard. This report is a Multi-Theme report, covering all stocks, all sectors and all themes, giving readers a strong sense of how everything fits together and how conflicting themes might interact with one another.

Reasons to Buy

• Ever since the term BRIC was coined by a Goldman Sachs banker in 2001 expectations for India’s economy and automotive industry were lifted.
• However, while China’s economy and industry has rocketed in the past decade, India has flickered into life sporadically. Just as its automotive market was building momentum between 2015 and 2019 H1, the country’s economy floundered and sent automotive sales into a tailspin. Worse was to follow in 2020 with the onset of the COVID-19 pandemic with India severely affected. Then, in 2021, just as the outlook was brightening India was the epicenter of the Delta variant of the coronavirus that has since roiled countries worldwide.
• Furthermore, just this September Ford followed GM in announcing its departure from the Indian market after a couple of decades of struggling to turn a profit.