Shares of auto and ancillary companies are doing well over last one year. Nifty Auto Index is up 12.28 percent compared to gain of 5.07 percent in Nifty 50 index. Mutual funds have launched five schemes investing primarily in shares of these companies in last one year. UTI Transportation and Logistics Fund has been around for almost a decade and gave 14.04 percent returns.
Auto sector faced troubles such as low demand in lockdown period, supply chain issues and increased competition from electric vehicles. As the companies roll out electric vehicles and the demand-supply situation improves along with relatively lower metal prices, the sector is poised to do well.