For good reason, auto stocks have been among the best-performing industries in India recently. Over the past ten years, the Nifty Auto index has regularly outpaced the Nifty50, evidence of the unparalleled growth that India’s auto sector has seen.
The auto industry is doing fairly well despite a few obstacles over the past few years, such as supply chain interruptions and regulatory changes. So, let’s explore some of the best-performing car stocks in India: –
What are Auto Stocks?
The term “auto sector stocks” refers to the shares of businesses that produce and market motorbikes, scooters, three-wheelers, automobiles, SUVs, buses, and lorries, and the parts that go into creating them. Tires, batteries, and other parts are all included in this category. One of the biggest manufacturing firms in India is the auto industry, which is frequently taken to represent consumer demand in the overall economy.
Top Auto Sector Stocks to Invest in India
The list of top auto stocks is as follows:
1. Maruti Suzuki India Ltd
Known for producing and distributing automobiles and parts, Maruti Suzuki India Limited is a significant participant in the automotive sector. In addition, it handles fleet management, auto loans, and used automobile sales. This car firm, outperforming its previous performance, is predicted to enjoy a 16.01% increase in revenue and a 52.28% increase in earnings the next year among the auto companies listed on the NSE. Its market share has also increased from 17.03% to 19.66% during the last five years in comparison to other car companies on the NSE, underscoring its growing dominance.
2. Tata Motors
Suppose we include the company’s British premium brands, Jaguar and Land Rover. In that case, it ranks as the largest carmaker by revenue in India as well as the largest maker of commercial vehicles. Furthermore, Tata Motors share price today owns over 80% of the rapidly expanding four-wheeler EV industry in India after being the pioneer in the introduction of electric vehicles.
3. Bajaj Auto Ltd
Extending its rise of 6.32% over the last three years, Bajaj Auto Limited, a manufacturer of motorcycles, three-wheelers, and parts, is forecasting a 15.99% increase in revenue for the upcoming year. Additionally, a 24.78% increase in earnings is anticipated, which is far more than the prior 5.55% increase. Its market share rose somewhat during five years, from 34.98% to 36.19%. Furthermore, Bajaj Auto has the strongest yearly growth rate among auto sector businesses, with net income and revenue rising by 7.51% and 7.44%, respectively, above industry standards.
4. Samvardhana Motherson
The company is the biggest manufacturer of auto parts in India. Among other things, it produces plastic parts, wire harnesses, and passenger car rearview mirrors. The business was founded in 1986 as a joint venture with the Japanese Sumitomo Group. It currently runs more than 350 locations in 42 nations in the Asia-Pacific region, Australia, Europe, South Africa, the Middle East, and North and South America.
The Bottom Line
When assembling their stock portfolios, investors cannot afford to overlook the car industry due to its substantial size and the multitude of major players like Hero Motocorp share price involved in the market. A number of the best auto stocks in India are indeed good investments. Nevertheless, after carefully examining market trends, financial performance, and other aspects, investors should determine their asset allocation and then select the top auto stocks to buy.