The auto ancillary sector in India has shown strong growth in recent years and is expected to continue to do so in the future.

Some factors that may make it a good investment include:

i. Increasing domestic and export demand: The Indian automotive industry is growing rapidly, driven by rising incomes and a growing middle class. The sector is also a major exporter, with a significant presence in global supply chains. The auto components industry grows 34.8% to INR 2.65 lakh cr in H1 FY23.

ii. Government support: The Indian government has implemented a number of initiatives to support the automotive sector, including policy measures and infrastructure development.

iii. Electric Vehicles are emerging in the industry, and to encourage it govt. of India has made a partial modification to the FAME-II scheme, increasing the incentive to Rs15,000 per kWh for all EVs.

iv. Favourable demographic trends: India's large and young population is expected to drive demand for vehicles in the coming years.

v. The last few years have been challenging for the Automobile industry due to various reasons like in 2017, the industry was impacted by Demonetization, and the industry also faced changes in norms like AHO regulatory and BS-IV and BS-VI norms and a shortage of semiconductors.

Overall, the auto ancillary sector in India appears to be well-positioned for growth and may be a good investment opportunity for those looking for exposure to the automotive industry