Vehicle Stocks In India

Vehicle stocks in India refer to shares of companies involved in the manufacturing, distribution and sale of automobiles, including cars, trucks, motorcycles and electric vehicles. These companies form part of the automotive sector and include well-known names like Maruti Suzuki, Tata Motors and Mahindra & Mahindra. Vehicle stocks are influenced by factors like consumer demand, fuel prices and economic conditions.

The table below shows the vehicle stocks in India based on the highest market capitalisation and 1-year return.

Introduction To Automobile Stocks In India

Maruti Suzuki India Ltd

The Market Cap of Maruti Suzuki India Ltd is Rs. 396,603.13 crores. The stock’s monthly return is 1.49%. Its one-year return is 21.92%. The stock is 8.45% away from its 52-week high.

Maruti Suzuki India Limited is involved in the manufacturing, purchasing and selling of motor vehicles, components and spare parts. The company focuses on producing and selling both passenger and commercial vehicles. It also offers aftermarket parts and accessories under the brand names Maruti Suzuki Genuine Parts and Maruti Suzuki Genuine Accessories. 

In addition, the company facilitates the sale of pre-owned cars, provides fleet management services and offers car financing. Maruti Suzuki’s vehicles are sold through three channels: NEXA, Arena and Commercial. Commercial products include Super Carry and Eeco Cargo. The company’s services include Maruti Suzuki Finance, Maruti Insurance, Maruti Suzuki Rewards, Maruti Suzuki Subscribe and Maruti Suzuki Driving School.

Tata Motors Ltd

The Market Cap of Tata Motors Ltd is Rs. 357,358.63 crores. The stock’s monthly return is -11.70%. Its one-year return is 52.05%. The stock is 21.44% away from its 52-week high.

Tata Motors Limited is a worldwide car manufacturer with a broad product lineup that includes cars, SUVs, trucks, buses and military vehicles. The company is divided into segments focusing on automotive operations and other activities. 

Within the automotive segment, there are four sub-segments: Tata Commercial Vehicles, Tata Passenger Vehicles, Jaguar Land Rover and Vehicle Financing. The company’s other operations involve IT services, machine tools and factory automation solutions.

Mahindra and Mahindra Ltd

The Market Cap of Mahindra and Mahindra Ltd is Rs. 353,579.22 crores. The stock’s monthly return is 0.76%. Its one-year return is 80.59%. The stock is currently 2.12% away from its 52-week high.

Mahindra and Mahindra Limited is an Indian company that provides a variety of products and services including farm equipment, utility vehicles, information technology and financial services. The company is divided into segments such as Automotive, Farm Equipment, Financial Services and Industrial Businesses and Consumer Services. 

The Automotive segment includes the sale of automobiles, spare parts, mobility solutions, construction equipment and related services, while the Farm Equipment segment focuses on tractors, implements, spare parts and related services. Mahindra and Mahindra offer a wide range of products from SUVs, pickups and commercial vehicles to electric vehicles, two-wheelers and construction equipment.   

Bajaj Auto Ltd

The Market Cap of Bajaj Auto Ltd is Rs. 333,481.06 crores. The stock’s monthly return is 21.44%. Its one-year return is 130.40%. The stock is 0.94% away from its 52-week high.

Bajaj Auto Limited, an India-based company, specializes in the manufacturing of two-wheelers, three-wheelers and quadricycles. The company is involved in the development, production and distribution of various automobiles, including motorcycles, commercial vehicles, electric two-wheelers and components.

It operates in segments such as Automotive, Investments and Others. The motorcycle lineup comprises models such as Boxer, CT, Platina, Discover, Pulsar, Avenger, KTM, Dominar, Husqvarna and Chetak. The commercial vehicle range includes Passenger Carriers, Good Carriers and Quadricycles.  

TVS Motor Company Ltd

The Market Cap of TVS Motor Company Ltd is Rs. 133,765.53 crores. The stock’s monthly return is 5.73%. Its one-year return is 86.20%. The stock is 1.58% away from its 52-week high.

TVS Motor Company Limited manufactures motorcycles, scooters, mopeds, three-wheelers, parts and accessories. The company’s motorcycle lineup features models such as Apache Series RTR, Apache RR 310, Apache RTR 165RP, TVS Raider, TVS Radeon, TVS StaR City + and TVS Sport. 

Additionally, it offers electric vehicles like the TVS iQube. Customers can access the TVS Augmented Reality Interactive Vehicle Experience (ARIVE) mobile application to explore detailed information about the TVS Apache series motorcycles, book test rides and make purchases. TVS Motor Company Limited operates four manufacturing facilities.

Hero MotoCorp Ltd

The Market Cap of Hero MotoCorp Ltd is Rs. 120,253.04 crores. The stock’s monthly return is 15.52%. Its one-year return is 96.39%. The stock is currently 2.21% away from its 52-week high.

Hero MotoCorp Limited is involved in the development, production, marketing, sales and distribution of two-wheelers and related components. The company’s range of products includes motorcycles, scooters and parts. 

Additionally, the company offers a variety of accessories like helmets, seat covers and tank pads. Hero MotoCorp operates eight manufacturing facilities, with six located in India and one in Colombia and Bangladesh each. Subsidiaries of the company include HMCL Americas Inc. USA, HMCL Netherlands B.V. and HMC MM Auto Limited.

Ola Electric Mobility Ltd

The Market Cap of Ola Electric Mobility Ltd is Rs. 48,955.80 crores. The stock’s monthly return is -28.28%. Its one-year return is 21.70%. The stock is 41.81% away from its 52-week high.

Ola Electric Mobility Ltd is an Indian electric vehicle (EV) company that primarily focuses on manufacturing electric two-wheelers. The company is known for its innovative products like the Ola S1 series of electric scooters, which have gained significant traction in the Indian market. 

Ola Electric operates the Ola Future Factory in Krishnagiri, Tamil Nadu, which is touted as the largest two-wheeler factory in the world, with an annual production capacity of 10 million units. The company is also expanding its product line with the upcoming launch of its first electric motorcycle series, Roadster, scheduled for 2025.

Maharashtra Scooters Ltd

The Market Cap of Maharashtra Scooters Ltd is Rs. 13,939.20 crores. The stock’s monthly return is 32.60%. Its one-year return is 61.11%. The stock is 1.99% away from its 52-week high.

Maharashtra Scooters Limited, an investment firm headquartered in India, has two main operating segments: Manufacturing and Investments. The company primarily manufactures pressure die casting dies, jigs and fixtures for the two and three-wheeler industry. Its subsidiary is Bajaj Holdings and Investment Ltd.

Force Motors Ltd

The Market Cap of Force Motors Ltd is Rs 9,498.96 crores. The stock’s monthly return is -18.90%. Its one-year return is 95.83%. The stock is 41.73% away from its 52-week high.

Force Motors Limited is an Indian automobile company that operates across the entire vertical integration spectrum. The company is involved in the design, development and manufacturing of automotive components, aggregates and vehicles. Their product range includes Light Commercial Vehicles (LCV), Multi-Utility Vehicles (MUV), Small Commercial Vehicles (SCV), Special Utility Vehicles (SUV) and Agricultural Tractors. 

Within their agricultural vehicle lineup are models like the Balwan 400 Super, Orchard Mini, Sanman 5000 and Abhiman 4X4. Their commercial vehicle offerings encompass citilines, ambulances, school buses, passenger carriers, goods carriers and the Gurkha range. Force Motors also caters to various transportation needs, providing robust solutions for both goods and passenger transport, whether it’s for rural or urban settings, long-distance or local travel and across well-maintained roads or rough terrain. 

Atul Auto Ltd

The Market Cap of Atul Auto Ltd is Rs. 1,798.98 crores. The stock’s monthly return is -1.97%. Its one-year return is 15.19%. The stock is 30.26% away from its 52-week high.

Atul Auto Limited is involved in the production and sale of three-wheeler vehicles as well as spare parts for such vehicles. These vehicles are utilized for various purposes such as carrying milk cans, water bottles, bakery products, edible oil tins, gas cylinders, electronics, home appliances, vegetables, bakery items, pizzas and ice cream. Atul Auto Limited also provides customer support through its dealership network.

What Are Vehicle Sector Stocks?

Vehicle sector stocks refer to shares of companies that are involved in the manufacturing, development and sales of automobiles and related products. This includes a wide array of businesses, such as car makers, parts suppliers and technology firms focused on automotive innovations.  

Investing in vehicle sector stocks offers investors exposure to the automotive industry’s growth and trends, including electric vehicles, autonomous driving technologies and advancements in manufacturing processes. These stocks can be influenced by economic factors, consumer preferences and regulatory changes, making them an interesting area for investment.

Features Of Automobile Stocks In India

The key features of automobile stocks in India highlight their significant role in the country’s economy. These stocks represent companies that manufacture, sell, or distribute vehicles and are influenced by factors such as demand, technology and government policies.

1. Cyclical Nature: Automobile stocks tend to be cyclical, meaning their performance often correlates with the broader economy. During economic booms, demand for vehicles rises, while downturns can lead to reduced sales and stock performance.
2. Technological Advancements: Companies in the auto sector are increasingly focusing on electric vehicles (EVs) and innovative technologies, making it important for investors to assess the company’s adaptability and investment in research and development.
3. Government Regulations: The automobile sector is highly regulated, with policies on emissions, safety and fuel efficiency. Changes in regulations can significantly impact production costs and the overall profitability of these companies.
4. Raw Material Dependency: Automobile manufacturers are heavily dependent on raw materials like steel, aluminium and rubber. Fluctuations in commodity prices can directly impact production costs and, consequently, stock performance.
5. Global and Domestic Demand: The performance of automobile stocks depends on both domestic and international demand for vehicles. Economic conditions, fuel prices and consumer preferences in key markets can affect sales and profitability.

Best Vehicle Stocks In India Based On 6 Month Return

The table below shows the best vehicle stocks in India based on a 6-month return.

Top Vehicle Stocks In India Based On 5 Year Net Profit Margin

The table below shows the top vehicle stocks in India based on 5-year net profit margin.

Best Automobile Stocks Based On 1M Return

The table below shows the best automobile stocks based on a 1-month return.

High Dividend Yield Vehicle Stocks

The table below shows the high dividend yield vehicle stocks.

Historical Performance Of Vehicle Stocks

The table below shows the historical performance of vehicle stocks based on 5 year CAGR.

Factors To Consider When Investing In Automobile Stocks In India

The factor to consider when investing in automobile stocks in India is their sensitivity to economic cycles and consumer demand. Investors should carefully analyze both market conditions and the individual company’s performance before making any investment decisions.

1. Economic Conditions: Automobile sales are directly tied to the broader economy. In periods of economic growth, vehicle sales typically increase, while during downturns, sales can drop, impacting the performance of automobile stocks.
2. Consumer Preferences: Shifting consumer preferences, such as demand for electric vehicles (EVs) or fuel-efficient cars, can significantly affect a company’s sales. It’s important to consider how well a company adapts to these trends.
3. Government Policies: Regulatory changes, such as emissions standards, safety regulations and subsidies for electric vehicles, can impact production costs and profit margins, making it crucial to monitor government policies affecting the auto sector.
4. Commodity Prices: The cost of raw materials like steel, aluminium and rubber plays a significant role in vehicle manufacturing. Fluctuations in commodity prices can affect production costs and, consequently, the profitability of automobile companies.
5. Technological Innovations: Companies investing in new technologies, such as electric vehicles or autonomous driving, may have a competitive edge. Assessing a company’s commitment to innovation is essential for understanding its future growth potential.

How To Invest In Best Vehicle Stocks In India?

Investing in prominent vehicle stocks in India involves thorough research and analysis. Start by identifying leading automotive companies and assessing their financial health, market share and growth potential. Stay updated on industry trends and government policies that could affect the sector. Diversification across various automotive segments can also minimize risk. For a streamlined investment process, consider platforms like Alice Blue, which offer user-friendly services for investing in stocks.  

Impact Of Market Trends On Vehicle Stocks In India

Market trends have a direct impact on vehicle stocks in India, as they are closely linked to economic conditions. During periods of economic growth, consumer demand for automobiles rises, boosting vehicle sales and positively affecting stock prices in the sector.

Conversely, during economic slowdowns, high fuel prices, or inflationary pressures, vehicle stocks may experience a decline due to reduced consumer spending and lower demand for new vehicles. This can lead to lower sales and profitability for auto companies.

Additionally, trends like the shift toward electric vehicles (EVs) and stricter emissions regulations also influence the performance of vehicle stocks. Companies adapting to these trends often see better stock performance compared to those lagging.

How Do Automobile Stocks In India Perform In Economic Downturns?

Typically, during periods of economic decline, consumer spending and demand for new vehicles tend to decrease, significantly impacting automobile manufacturers. This often leads to reduced sales volumes and lower revenues, which can negatively affect stock prices in the sector.  

Furthermore, economic downturns may result in cost-cutting measures, layoffs and reduced investment in innovation and expansion within the industry. Consequently, while some automobile stocks might rebound as the economy recovers, the initial impact of a downturn can lead to notable volatility for investors in this sector.

Benefits Of Best Vehicle Stocks In India

The primary advantage of investing in the best vehicle stocks in India is their potential for long-term growth, driven by rising consumer demand, innovation and increasing focus on electric vehicles. These factors make vehicle stocks appealing to long-term investors.

1. Strong Market Demand: The Indian automotive sector benefits from growing consumer demand, particularly for two-wheelers and affordable cars, offering significant potential for steady revenue growth and stock appreciation over time.
2. Technological Advancements: Companies focusing on electric vehicles (EVs) and hybrid technologies have strong growth potential as the market shifts toward eco-friendly solutions, positioning them for future success and higher stock valuations.
3. Government Incentives: The Indian government’s push for electric vehicles and cleaner transportation includes subsidies and favourable policies, benefiting companies investing in sustainable vehicle technologies and increasing their profitability.
4. Diversified Revenue Streams: Top vehicle companies in India often have diversified product portfolios, including commercial vehicles, two-wheelers and passenger cars, reducing risk and offering stable returns across multiple segments.
5. Global Expansion: Many leading Indian vehicle manufacturers have a strong international presence, with exports contributing significantly to revenue. This global footprint provides additional growth avenues and shields against domestic market fluctuations.

Risks Of Investing In Vehicle Stocks In India

The main risk of investing in vehicle stocks in India is their sensitivity to economic cycles. Automotive demand can fluctuate based on factors like consumer spending, inflation and fuel prices, affecting the performance of vehicle companies.

1. Economic Slowdowns: Vehicle sales are highly cyclical and during economic downturns or slowdowns, consumer demand for new vehicles drops, leading to lower sales and affecting the stock prices of auto manufacturers.
2. Rising Fuel Prices: Increasing fuel costs can negatively impact consumer purchasing decisions, reducing the demand for vehicles, particularly for gas-powered cars, thereby affecting the revenue and profitability of automotive companies.
3. Regulatory Changes: Stricter emissions standards or changes in safety regulations can increase manufacturing costs, potentially squeezing profit margins for companies unable to quickly adapt to the new requirements.
4. Commodity Price Fluctuations: The cost of raw materials like steel, aluminium and rubber significantly impacts vehicle production costs. Any increase in commodity prices can erode profit margins and negatively impact stock performance.
5. Technological Disruptions: Companies that fail to invest in new technologies, such as electric vehicles (EVs) or autonomous driving, may fall behind competitors, reducing their market share and long-term growth prospects.

Vehicle Sector Stocks GDP Contribution

The vehicle sector in India plays a crucial role in the country’s GDP, contributing significantly through manufacturing, sales and exports. This sector includes passenger vehicles, commercial vehicles and two-wheelers, which are essential for both domestic transportation needs and global exports, driving industrial growth and employment.

In addition to direct contributions, the vehicle sector supports various ancillary industries like steel, rubber and electronics. The sector’s growth boosts overall economic activity and job creation, making it a vital component of India’s manufacturing and industrial output, directly influencing GDP growth.

Who Should Invest In Automobile Stocks In India?

Investing in automobile stocks in India is ideal for those seeking long-term growth through exposure to one of the country’s key industrial sectors. With increasing demand for vehicles and technological advancements, these stocks appeal to a range of investors with different financial goals.

1. Long-Term Investors: Those with a long-term investment horizon can benefit from the steady growth potential in the auto sector, driven by rising consumer demand and technological advancements like electric vehicles.
2. Risk-Tolerant Investors: Automobile stocks can be cyclical and sensitive to economic conditions, so investors with a higher risk tolerance may find opportunities for both growth and short-term gains during favourable market conditions.
3. Sector-Focused Investors: Individuals looking to diversify their portfolio within the manufacturing or industrial sector should consider auto stocks, as they represent a key part of India’s economic growth and offer exposure to both domestic and global markets.
4. Dividend Seekers: Some established automobile companies offer regular dividends, making these stocks appealing to income-seeking investors who want both capital appreciation and periodic income.

FAQs – Automobile Stocks In India

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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.