The table below shows the Best Auto Sector Stocks In India based on Market Capitalization.
| Name | Market Cap (₹ Cr) | Close Price (₹) | 1Y Return (%) |
| Mahindra and Mahindra Ltd | 3,67,624.73 | 3,066.90 | 85.63 |
| Maruti Suzuki India Ltd | 3,52,074.29 | 11,198.20 | 6.23 |
| Tata Motors Ltd | 2,94,453.18 | 799.9 | 10.97 |
| Bajaj Auto Limited | 2,51,703.26 | 9,013.30 | 46.83 |
| Hyundai Motor India Ltd | 1,48,975.35 | 1,833.45 | 0.76 |
| Eicher Motors Ltd | 1,31,941.32 | 4,813.05 | 19.56 |
| TVS Motor Company Ltd | 1,19,643.00 | 2,488.85 | 28.8 |
| Samvardhana Motherson International | 1,17,717.22 | 167.3 | 72.56 |
| Bosch Ltd | 1,05,963.42 | 35,927.55 | 64.13 |
| Hero MotoCorp Ltd | 91,765.78 | 4,588.30 | 23.85 |
Introduction to Auto Sector Stocks List
Mahindra and Mahindra Ltd
The Market Cap of Mahindra and Mahindra Ltd is Rs. 3,67,624.73 crores. The stock’s monthly return is 2.97%. Its one-year return is 85.63%. The stock is 94.72% away from its 52-week high.
Mahindra and Mahindra Ltd is a leading Indian multinational corporation in the automotive and farm equipment sectors. Renowned for its SUVs, tractors, and commercial vehicles, the company has a diverse portfolio addressing both domestic and international markets. Its innovative approach and strong R&D capabilities support its robust growth.
The company is making strides in electric vehicle (EV) development to align with sustainability goals. Additionally, Mahindra’s strong dealership network, wide product range, and focus on rural and urban customers have solidified its position as a market leader.
Maruti Suzuki India Ltd
The Market Cap of Maruti Suzuki India Ltd is Rs. 3,52,074.29 crores. The stock’s monthly return is -0.70%. Its one-year return is 6.23%. The stock is 15.00% away from its 52-week high.
Maruti Suzuki India Ltd, the country’s largest carmaker, dominates the passenger vehicle segment with its fuel-efficient and affordable offerings. Its popular models cater to a broad consumer base, from budget-conscious buyers to those seeking premium compact cars.
The company’s expansive dealer network and after-sales service infrastructure have significantly contributed to its success. With increasing investments in hybrid and electric vehicles, Maruti Suzuki aims to align with evolving market trends and environmental sustainability goals.
Tata Motors Ltd
The Market Cap of Tata Motors Ltd is Rs. 2,94,453.18 crores. The stock’s monthly return is -0.79%. Its one-year return is 10.97%. The stock is 14.89% away from its 52-week high.
Tata Motors Ltd is a leading global automobile manufacturer offering a wide range of cars, SUVs, trucks, and buses. Known for its innovation and technology-driven products, Tata Motors is pivotal in India’s EV revolution with its popular Nexon EV.
With strong exports and a diverse product portfolio, Tata Motors is also a key player in the luxury vehicle segment through its Jaguar Land Rover (JLR) brand. The company’s focus on sustainability and digital transformation enhances its global competitiveness.
Bajaj Auto Limited
The Market Cap of Bajaj Auto Limited is Rs. 2,51,703.26 crores. The stock’s monthly return is -7.51%. Its one-year return is 46.83%. The stock is 49.76% away from its 52-week high.
Bajaj Auto Limited is a prominent two-wheeler and three-wheeler manufacturer in India, recognized for its fuel-efficient and durable vehicles. Known for its iconic brands like Pulsar and Dominar, Bajaj is a leader in the domestic and export motorcycle markets.
The company’s global reach and innovative product strategies contribute to its sustained growth. Its focus on transitioning to electric mobility and premium bike segments aligns with global trends, ensuring its long-term relevance in the automotive industry.
Hyundai Motor India Ltd
The Market Cap of Hyundai Motor India Ltd is Rs. 1,48,975.35 crores. The stock’s monthly return is -0.18%. Its one-year return is 0.76%. The stock is 8.58% away from its 52-week high.
Hyundai Motor India Ltd is the second-largest passenger car manufacturer in India, offering a range of popular models such as Creta and Venue. It excels in providing premium features at competitive prices, catering to diverse customer needs.
The company’s commitment to innovation is evident in its foray into electric vehicles with the Kona EV. Hyundai’s robust dealership network and focus on customer satisfaction make it a formidable player in the Indian automotive market.
Eicher Motors Ltd
The Market Cap of Eicher Motors Ltd is Rs. 1,31,941.32 crores. The stock’s monthly return is 1.56%. Its one-year return is 19.56%. The stock is 35.11% away from its 52-week high.
Eicher Motors Ltd is a leading manufacturer of motorcycles and commercial vehicles, renowned for its iconic Royal Enfield brand. The company has a strong foothold in both domestic and international markets, with a focus on premium motorcycles.
Its joint venture with Volvo for commercial vehicles adds to its diversified portfolio. Eicher’s focus on quality, design, and innovation ensures its leadership in the two-wheeler and commercial vehicle segments.
TVS Motor Company Ltd
The Market Cap of TVS Motor Company Ltd is Rs. 1,19,643.00 crores. The stock’s monthly return is 1.36%. Its one-year return is 28.80%. The stock is 32.88% away from its 52-week high.
TVS Motor Company Ltd is one of India’s leading two-wheeler manufacturers, known for its innovation and quality products like Jupiter and Apache. The company has a strong presence in scooters, motorcycles, and mopeds, addressing varied customer needs.
TVS is actively investing in electric mobility and digital technology to enhance customer experience and sustainability. Its focus on exports and premium bike segments contributes to its growth and profitability.
Samvardhana Motherson International Ltd
The Market Cap of Samvardhana Motherson International Ltd is Rs. 1,17,717.22 crores. The stock’s monthly return is -4.97%. Its one-year return is 72.56%. The stock is 85.48% away from its 52-week high.
Samvardhana Motherson International Ltd is a leading global automotive component supplier, catering to diverse markets and OEMs worldwide. Its portfolio includes electrical distribution systems, lighting, and polymer parts for vehicles.
The company’s robust global footprint and partnerships with top automotive players underscore its significance in the industry. Investments in R&D and sustainability initiatives ensure it remains competitive in a rapidly evolving automotive landscape.
Bosch Ltd
The Market Cap of Bosch Ltd is Rs. 1,05,963.42 crores. The stock’s monthly return is 2.12%. Its one-year return is 64.13%. The stock is 68.43% away from its 52-week high.
Bosch Ltd is a leading supplier of technology and services in mobility solutions, industrial technology, and consumer goods. Its expertise in automotive components makes it a key player in India’s automotive sector.
Bosch’s focus on innovation and sustainability is reflected in its investments in smart mobility solutions and EV technologies. The company’s strong brand reputation and diversified portfolio drive its success.
Hero MotoCorp Ltd
The Market Cap of Hero MotoCorp Ltd is Rs. 91,765.78 crores. The stock’s monthly return is -3.31%. Its one-year return is 23.85%. The stock is 24.58% away from its 52-week high.
Hero MotoCorp Ltd is the world’s largest two-wheeler manufacturer, renowned for its fuel-efficient and reliable motorcycles. Its popular models like Splendor and Passion cater to the mass market, ensuring strong domestic and export performance.
The company’s initiatives in electric vehicles and premium bikes position it for future growth. Hero’s vast dealer network and focus on rural and urban markets drive its leadership in the two-wheeler segment.
What Are Auto Sector Stocks?
Auto sector stocks represent shares of companies involved in the production, distribution, and sale of vehicles, including cars, trucks, motorcycles, and commercial vehicles. These stocks are integral to the automotive industry, reflecting its growth and challenges.
The auto sector encompasses a wide range of businesses, from manufacturers of automobiles to suppliers of parts, accessories, and services. These companies are critical to the global economy, driving innovation and employment across multiple industries.
Investing in auto sector stocks offers exposure to technological advancements, consumer trends, and economic cycles. However, these stocks can be sensitive to factors like regulatory changes, fuel prices, and shifts in consumer demand.
Features Of Auto Sector Stocks In India
The main features of auto sector stocks in India include cyclical nature, high capital expenditure, regulatory influence, and dependency on consumer sentiment. These factors significantly impact the performance and investment potential of auto stocks in the Indian market.
- Cyclical Nature: Auto sector stocks are highly cyclical, meaning their performance is closely tied to the economic cycle. During economic booms, demand for vehicles rises, boosting stock performance, while during recessions, demand drops, leading to potential downturns.
- High Capital Expenditure: Companies in the auto sector require significant capital investment for manufacturing, research, and development. This high capital expenditure can affect profitability, making it crucial for investors to assess a company’s financial health and investment strategy.
- Regulatory Influence: The auto sector in India is heavily influenced by government regulations, such as emission norms, safety standards, and taxation policies. Changes in regulations can have a direct impact on production costs, pricing, and overall profitability of auto companies.
- Dependency on Consumer Sentiment: Auto sector stocks are strongly influenced by consumer sentiment and purchasing power. Factors like interest rates, fuel prices, and economic confidence play a crucial role in driving vehicle sales, impacting the performance of auto stocks.
Top Auto Sector Stocks Based on 6 Month Return
The table below shows the Top Auto Sector Stocks Based on 6 Month Return.
| Name | Close Price (₹) | 6M Return (%) |
| EMA India Ltd | 115 | 236.26 |
| Tirupati Forge Ltd | 57.14 | 209.37 |
| NDR Auto Components Ltd | 780.45 | 93.04 |
| Sundaram Clayton Ltd | 2,718.60 | 77.77 |
| Banco Products (India) Ltd | 1,070.60 | 76.4 |
| HIM Teknoforge Ltd | 235 | 67.14 |
| Precision Camshafts Ltd | 323.45 | 64.9 |
| Triton Valves Ltd | 4,825.00 | 63.39 |
| Ultra Wiring Connectivity System | 142.5 | 61.93 |
| SJS Enterprises Ltd | 1,277.75 | 61.8 |
Best Auto Sector Stocks In India Based on 5 Year Net Profit Margin
The table below shows the Best Auto Sector Stocks In India Based on 5 Year Net Profit Margin.
| Name | Close Price (₹) | 5Y Avg Net Profit Margin (%) |
| Maharashtra Scooters Ltd | 9,397.85 | 73.01 |
| Hindustan Motors Ltd | 26.79 | 34.04 |
| Gandhi Special Tubes Ltd | 857.55 | 27.96 |
| Eicher Motors Ltd | 4,813.05 | 18.02 |
| Sona BLW Precision Forgings Ltd | 645.55 | 17.9 |
| Bajaj Auto Limited | 9,013.30 | 16.52 |
| Saint-Gobain Sekurit India Ltd | 147.2 | 15.12 |
| Duncan Engineering Ltd | 643.7 | 12.3 |
| Shanthi Gears Ltd | 536.65 | 12.17 |
| Majestic Auto Ltd | 415 | 11.25 |
Auto Sector Stocks List Based on 1 Month Return
The table below shows the Auto Sector Stocks List Based on 1 Month Return.
| Name | Close Price (₹) | 1M Return (%) |
| EMA India Ltd | 115 | 55.41 |
| Ultra Wiring Connectivity System | 142.5 | 54.89 |
| Banco Products (India) Ltd | 1,070.60 | 43.97 |
| Setco Automotive Ltd | 16.25 | 34.49 |
| OBSC Perfection Ltd | 185 | 27.53 |
| Ola Electric Mobility Ltd | 94.57 | 26.84 |
| Sibar Auto Parts Ltd | 14.19 | 24.4 |
| Kross Ltd | 229.02 | 22.83 |
| Sundaram Brake Linings Ltd | 1,118.55 | 21.42 |
| Sandhar Technologies Ltd | 568.85 | 20.4 |
High Dividend Yield Auto Sector Stocks In India
The table below shows High Dividend Yield Auto Sector Stocks In India based on Dividend Yield.
| Name | Close Price (₹) | Dividend Yield (%) |
| Hyundai Motor India Ltd | 1,833.45 | 7.24 |
| Majestic Auto Ltd | 415 | 3.61 |
| Hero MotoCorp Ltd | 4,588.30 | 3.05 |
| Swaraj Engines Ltd | 3,215.25 | 2.95 |
| Munjal Showa Ltd | 152.32 | 2.95 |
| Rane Brake Linings Ltd | 1,078.60 | 2.78 |
| India Motor Parts & Accessories Ltd | 1,223.55 | 2.21 |
| Ashok Leyland Ltd | 228.96 | 2.16 |
| Jamna Auto Industries Ltd | 103.32 | 2.13 |
| Federal-Mogul Goetze (India) Ltd | 416.05 | 2.09 |
Historical Performance of Auto Sector Stocks
The table below shows the Historical Performance of Auto Sector Stocks based on 5Y CAGR.
| Name | Market Cap (₹ Cr) | Close Price (₹) | 5Y CAGR (%) |
| EMA India Ltd | 11.56 | 115 | 93.4 |
| Automotive Stampings and Assemblies Ltd | 1,149.22 | 724.4 | 87.51 |
| JBM Auto Ltd | 20,543.07 | 1,737.30 | 78.81 |
| Talbros Automotive Components Ltd | 2,069.74 | 335.3 | 71.77 |
| Pricol Ltd | 6,214.13 | 509.85 | 69.87 |
| Remsons Industries Ltd | 591.51 | 169.59 | 63.49 |
| Banco Products (India) Ltd | 7,656.79 | 1,070.60 | 63.09 |
| Sharda Motor Industries Ltd | 5,963.23 | 2,077.50 | 61.64 |
| G.S. Auto International Ltd | 61.85 | 42.98 | 61.6 |
| RACL Geartech Ltd | 893.36 | 892.45 | 61.49 |
Factors To Consider When Investing In Automobile Stocks in India
The main factors to consider when investing in automobile stocks in India include market demand, regulatory environment, technological advancements, and company financials. Understanding these elements helps investors make informed decisions about the potential risks and rewards in this sector.
- Market Demand: Assessing the current and projected demand for vehicles is crucial. Factors like consumer preferences, urbanization, and disposable income levels can significantly influence the sales of automobiles, directly affecting the performance of auto sector stocks.
- Regulatory Environment: Government regulations, including emission norms, safety standards, and import-export policies, can impact production costs and profitability. Investors need to stay informed about regulatory changes and how they may affect the automotive industry.
- Technological Advancements: The auto sector is rapidly evolving with advancements in electric vehicles, autonomous driving, and green technologies. Companies that invest in innovation and adapt to these changes are more likely to succeed in the long term.
- Company Financials: Analyzing the financial health of automobile companies is essential. Factors like revenue growth, debt levels, and profitability ratios provide insights into a company’s ability to sustain operations and navigate market challenges.
How To Invest In Auto Sector Shares?
To invest in auto sector shares, research top automotive companies, check their financial performance, and analyze industry trends. Use a trusted brokerage platform to buy shares, focusing on companies with strong market positions. Diversify your portfolio to balance risks and potential returns.
Impact of Government Policies on Auto Sector Stocks
Government policies play a significant role in shaping the auto sector in India. Regulations such as emission standards, fuel efficiency norms, and safety requirements directly affect production costs and the pricing of vehicles, influencing stock performance.
Subsidies and incentives for electric vehicles (EVs) can drive growth in the EV segment, benefiting companies that are investing in this technology. Conversely, higher taxes or restrictions on conventional vehicles can negatively impact sales and profitability.
Trade policies, including import duties on auto components, also affect the cost structure of automobile companies. Changes in these policies can lead to fluctuations in profit margins, making it essential for investors to monitor government actions closely.
How Auto Sector Stocks Perform in Economic Downturns?
During economic downturns, auto sector stocks often experience significant volatility due to reduced consumer spending. As vehicles are high-value discretionary purchases, demand typically declines in challenging economic times, leading to lower sales and impacting stock prices.
However, companies with a strong market position, diverse product portfolio, and efficient cost management may demonstrate resilience. These companies might benefit from a recovery phase as they are well-positioned to capture market share when economic conditions improve.
Additionally, downturns often lead to consolidation in the industry, with stronger players acquiring weaker ones. This can create opportunities for investors who identify companies with the potential to emerge stronger from economic challenges.
Advantages Of Investing In Automobile Stocks?
The main advantages of investing in automobile stocks include exposure to a growth-oriented industry, potential for technological innovation, strong brand loyalty, and opportunities in emerging markets. These factors make auto stocks attractive for investors seeking long-term growth and diversification.
- Growth-Oriented Industry: The automobile industry is constantly expanding, driven by rising consumer demand and increasing urbanization. Investing in auto stocks offers exposure to this growth potential, particularly in developing markets like India, where vehicle ownership is on the rise.
- Technological Innovation: The auto sector is at the forefront of technological advancements, such as electric vehicles (EVs), autonomous driving, and green technologies. Companies that lead in innovation can offer significant returns as they capitalize on these emerging trends.
- Strong Brand Loyalty: Established automobile companies often enjoy strong brand loyalty, which translates into consistent sales and market leadership. This brand strength provides a competitive edge, helping companies maintain profitability and deliver reliable returns to investors.
- Opportunities in Emerging Markets: The growing middle class and increasing disposable income in emerging markets present significant opportunities for automobile companies. Investors in auto stocks can benefit from the expansion of these markets, driving revenue and stock price appreciation.
Risks Of Investing In Auto Sector Stocks?
The main risks of investing in auto sector stocks include sensitivity to economic cycles, regulatory challenges, high capital expenditure, and technological disruption. These risks can affect the stability and profitability of auto stocks, making it crucial to evaluate them carefully.
- Sensitivity to Economic Cycles: Auto sector stocks are highly cyclical, meaning they are closely tied to economic conditions. During economic downturns, demand for vehicles typically declines, leading to lower sales and potential losses for investors in these stocks.
- Regulatory Challenges: The auto industry is subject to strict regulations regarding emissions, safety, and fuel efficiency. Changes in these regulations can increase production costs or require significant investment in new technologies, potentially impacting profitability and stock performance.
- High Capital Expenditure: Automobile companies require substantial capital investment for manufacturing, research, and development. This high expenditure can strain financial resources, especially during periods of low sales, affecting the company’s ability to generate returns for shareholders.
- Technological Disruption: The rapid pace of technological change in the auto sector, particularly with the rise of electric and autonomous vehicles, poses a risk to traditional automakers. Companies that fail to adapt may lose market share, impacting their stock performance.
Auto Sector Stocks GDP Contribution
The auto sector significantly contributes to India’s GDP, driving economic growth through manufacturing, sales, and exports. It supports a vast supply chain, including components, services, and ancillary industries, generating employment and fostering economic activity nationwide.
Automobile manufacturing is a key industrial sector, accounting for a substantial share of India’s industrial output. The sector’s growth directly impacts GDP, as increased vehicle production and sales boost related industries like steel, rubber, and electronics, further enhancing economic contribution.
Who Should Invest in Auto Sector Stocks?
Investors with a long-term horizon and an appetite for cyclical industries should consider investing in auto sector stocks. These stocks offer growth potential, particularly in emerging markets, making them suitable for those seeking capital appreciation over time.
Investors interested in technological innovation and industry transformation should also look at auto sector stocks. With the rise of electric vehicles, autonomous driving, and other advancements, the sector presents opportunities for those willing to take on some risk for potentially high rewards.
Best Stock In Auto Sector – FAQs
Top Auto Sector Stocks #1: Mahindra and Mahindra Ltd
Top Auto Sector Stocks #2: Maruti Suzuki India Ltd
Top Auto Sector Stocks #3: Tata Motors Ltd
Top Auto Sector Stocks #4: Bajaj Auto Limited
Top Auto Sector Stocks #5: Hyundai Motor India Ltd
Top Auto Sector Stocks Based on Market Capitalization.
Best auto stocks based on 6-month return include EMA India Ltd, Tirupati Forge Ltd, NDR Auto Components Ltd, Sundaram Clayton Ltd, and Banco Products (India) Ltd, all of which have shown notable growth, making them strong contenders for investment in the automotive sector.
Investing in auto sector stocks can be safe if you carefully consider economic cycles, company fundamentals, and industry trends, but they are generally more volatile than other sectors.
You can invest in auto stocks in India by opening a Demat account, completing KYC, funding your account, and purchasing shares of auto companies through a reliable brokerage platform.
Here are some of the Best Stock Research Articles listed based on Top Sectors (Industries), Market Cap, and Fundamental Analysis Factors:
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
