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Are auto ancillary stocks worth your money? Here's what experts say

The prevailing liquidity crunch, especially in the NBFC space, has had a serious impact on the automobile demand, which has also been under pressure due to the rise in insurance and fuel costs.

Auto Industry
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Auto Industry

Swati Verma New Delhi
Auto ancillary stocks have seen a significant decline in the calendar year 2019 (CY19) with some of the names tumbling up to nearly 60 per cent. The fall comes on the back of an overall economic slowdown, which has impacted the entire auto segment.

For instance, volumes have been weak in May 2019 for most auto-makers, with declines for Tata Motors (-38 per cent yoy) and Maruti Suzuki (-24 per cent). In comparison, Mahindra & Mahindra (M&M) recorded a flat performance (-0.5 per cent), supported by new products, reports suggest.

As regards auto ancillaries, experts caution that there is more

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