While the Q1 earnings season has been a mixed bag, the auto sector would fall in the category of those that have not delivered any negative surprises. Now, does that mean you should start looking at them as investors? The answer is in a grey area. There is a transformation which is still underway, and like all other sectoral transformations, there will be some winners and some losers. One reason, however, to keep these stocks on a watchlist is that Indian auto majors hardly export any vehicles to the US, so the negative sentiment impacting other sectors will not hit them. At the same time, there is a headwind which may or may not become big. But the fact is that India's growth story is incomplete without the auto sector. So, eventually, the headwinds will not matter.