Last Updated on Oct 1, 2024 by Anjali Chourasiya
Auto stocks in India have been one of the best-performing sectors in recent times, and for a good reason. India’s auto sector has experienced unprecedented growth, and the Nifty Auto index has consistently outperformed the Nifty50 over the past decade.
Despite some challenges over the past few years, including regulatory changes and supply chain disruptions, the auto sector is performing relatively well.
Table of Contents
What are Automobile Stocks?
Automobile stocks refer to shares of companies that are involved in the design, manufacturing, and sale of vehicles. This includes companies in the automobile industry such as car manufacturers and auto ancillary stocks, which provide parts and components to the automobile sector.
Automobile companies in India play a significant role in driving the economy, and investors often track automobile stocks in India for opportunities in both domestic and global markets. The automobile industry in India is a key contributor to the country’s growth, with companies producing a wide range of vehicles, including cars, trucks, and two-wheelers.
Here are the top-performing auto stocks in India –
Top 10 Auto Stocks in India
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | 1M Return (%) |
| Bosch Ltd | Auto Parts | 111,128.79 | 37,678.90 | 44.61 | 19.27 |
| Asahi India Glass Ltd | Auto Parts | 19,190.73 | 789.45 | 58.51 | 17.91 |
| Bajaj Auto Ltd | Two Wheelers | 344,770.05 | 12,345.95 | 44.73 | 16.98 |
| CEAT Ltd | Tires & Rubber | 12,761.20 | 3,154.80 | 19.86 | 15.55 |
| Mahindra and Mahindra Ltd | Four Wheelers | 370,839.70 | 3,094.90 | 32.91 | 14.73 |
| Apollo Tyres Ltd | Tires & Rubber | 34,794.01 | 547.85 | 20.21 | 10.42 |
| Hero MotoCorp Ltd | Two Wheelers | 114,236.64 | 5,712.40 | 30.51 | 10.32 |
| Samvardhana Motherson International Ltd | Auto Parts | 148,740.24 | 211.39 | 54.76 | 9.41 |
| Maruti Suzuki India Ltd | Four Wheelers | 416,206.13 | 13,238.00 | 30.86 | 8.30 |
| JK Tyre & Industries Ltd | Tires & Rubber | 11,800.67 | 430.65 | 15.01 | 7.05 |
Note: The top auto sector stocks in India are derived using Tickertape Stock Screener. The data is as of 30th September 2024, and the parameters are as follows –
- Stock Universe > Nifty 500
- Sector > Consumer Discretionary > Four Wheeler, Three Wheeler, Two Wheeler, Tires & Rubbers, Auto Parts
- 1M return: Sorted from highest to lowest
🚀 Pro Tip: Explore Tickertape’s Financial Statements for detailed company financial reports to make informed investment decisions.
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Overview of the Top Auto Stocks in India
Bosch Ltd
Bosch Ltd, founded in 1951, is a key player in the auto parts industry. The company manufactures a variety of automotive components, including advanced technologies for mobility solutions, industrial technology, consumer goods, and energy and building technology.
As of 30th September 2024, its market capitalisation stands at Rs. 111,128.79 cr., with a closing price of Rs. 37,678.90. The stock’s price-to-earnings (PE) ratio is 44.61, and it has shown a 1-month return of 19.27%.
Asahi India Glass Ltd
Asahi India Glass Ltd, incorporated in 1984, is one of the largest glass manufacturers in India. The company produces a wide range of automotive safety glass, architectural glass, and other specialty products, serving both the automotive and construction industries.
As of 30th September 2024, Asahi India Glass has a market capitalisation of Rs. 19,190.73 cr. Its stock is priced at Rs. 789.45, with a PE ratio of 58.51 and a 1-month return of 17.91%.
Bajaj Auto Ltd
Bajaj Auto Ltd, established in 1945, is a major manufacturer of two-wheelers and three-wheelers in India. Known for its motorcycles, scooters, and auto-rickshaws, Bajaj Auto is a well-recognized brand in the global automotive industry.
The company’s market capitalisation is Rs. 344,770.05 cr., and its stock is trading at Rs. 12,345.95. Bajaj Auto’s PE ratio stands at 44.73, and the 1-month return is 16.98%.
CEAT Ltd
CEAT Ltd, founded in 1958, is one of India’s leading tire manufacturers. The company produces tires for various vehicle segments, including two-wheelers, cars, trucks, and heavy-duty vehicles. It has a strong presence in both domestic and international markets.
CEAT has a market capitalisation of Rs. 12,761.20 cr., with a closing stock price of Rs. 3,154.80. The company has a PE ratio of 19.86 and a 1-month return of 15.55%.
Mahindra and Mahindra Ltd
Mahindra and Mahindra Ltd, founded in 1945, is a leading Indian multinational corporation involved in the manufacturing of automobiles, particularly four-wheelers, tractors, and other commercial vehicles. It is well known for its SUVs and agricultural equipment.
Mahindra and Mahindra has a market capitalisation of Rs. 370,839.70 cr. and a closing price of Rs. 3,094.90. The stock’s PE ratio is 32.91, with a 1-month return of 14.73%.
Apollo Tyres Ltd
Apollo Tyres Ltd, founded in 1972, is a well-established Indian tire manufacturer. The company produces tires for various vehicle types, including passenger cars, trucks, and off-road vehicles, and has operations in both domestic and international markets.
Apollo Tyres has a market capitalisation of Rs. 34,794.01 cr., with a closing price of Rs. 547.85. The stock’s PE ratio is 20.21, and the 1-month return is 10.42%.
Hero MotoCorp Ltd
Hero MotoCorp Ltd, established in 1984, is the world’s largest manufacturer of two-wheelers. The company produces a wide range of motorcycles and scooters, dominating the domestic Indian market and having a presence in over 40 countries.
Hero MotoCorp’s market capitalisation is Rs. 114,236.64 cr., and its stock is priced at Rs. 5,712.40. The PE ratio is 30.51, with a 1-month return of 10.32%.
Samvardhana Motherson International Ltd
Samvardhana Motherson International Ltd, founded in 1986, is a global auto parts manufacturer that provides a range of components for various vehicle types. Its product portfolio includes wiring harnesses, mirrors, and plastic components.
The company has a market capitalisation of Rs. 148,740.24 cr., and its stock is trading at Rs. 211.39. The PE ratio is 54.76, with a 1-month return of 9.41%.
Maruti Suzuki India Ltd
Maruti Suzuki India Ltd, established in 1981, is the largest passenger car manufacturer in India. The company offers a wide range of vehicles, from budget-friendly models to more premium options, and dominates the domestic car market.
Maruti Suzuki’s market capitalisation is Rs. 416,206.13 cr., with a closing stock price of Rs. 13,238.00. The PE ratio is 30.86, and the 1-month return is 8.30%.
JK Tyre & Industries Ltd
JK Tyre & Industries Ltd, founded in 1951, is one of India’s leading tire manufacturers. The company produces a variety of tires for passenger cars, commercial vehicles, and off-road vehicles, with a significant presence in both domestic and international markets.
JK Tyre has a market capitalisation of Rs. 11,800.67 cr., and its stock price is Rs. 430.65. The PE ratio is 15.01, with a 1-month return of 7.05%.
Fundamentally strong auto stocks
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | Return on Equity (%) | Net Income (Q) (Rs. in cr.) | Debt to Equity (%) |
| Tata Motors Ltd | Four Wheelers | 358,757.37 | 974.65 | 11.43 | 43.10 | 5,566.00 | 1.15 |
| Varroc Engineering Ltd | Auto Parts | 8,967.80 | 586.95 | 17.05 | 41.58 | 32.41 | 0.91 |
| Bajaj Auto Ltd | Two Wheelers | 344,770.05 | 12,345.95 | 44.73 | 26.43 | 1,941.79 | 0.07 |
| TVS Motor Company Ltd | Two Wheelers | 134,917.61 | 2,839.85 | 80.00 | 25.13 | 460.88 | 3.46 |
| Hero MotoCorp Ltd | Two Wheelers | 114,236.64 | 5,712.40 | 30.51 | 21.64 | 1,045.89 | 0.03 |
| Bosch Ltd | Auto Parts | 111,128.79 | 37,678.90 | 44.61 | 21.61 | 466.30 | 0.00 |
| Sona BLW Precision Forgings Ltd | Auto Parts | 46,184.10 | 743.40 | 89.29 | 20.32 | 141.95 | 0.15 |
| CIE Automotive India Ltd | Auto Parts | 21,145.66 | 557.40 | 18.79 | 20.30 | 216.82 | 0.14 |
| Schaeffler India Ltd | Auto Parts | 61,172.57 | 3,913.70 | 68.04 | 19.78 | 245.45 | 0.01 |
| JK Tyre & Industries Ltd | Tires & Rubber | 11,800.67 | 430.65 | 15.01 | 19.41 | 211.44 | 1.00 |
Note: The top auto sector stocks in India are derived using Tickertape Stock Screener. The data is as of 30th September 2024, and the parameters are as follows –
- Stock Universe > Nifty 500
- Sector > Consumer Discretionary > Four Wheeler, Three Wheeler, Two Wheeler, Tires & Rubbers, Auto Parts
- Return on Equity: Sort from highest to lowest
- Net Income: Positive > Set the lower value to zero
- Debt-to-Equity Ratio: Set to Low
Auto stocks based on high dividend yield
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | Dividend Yield (%) |
| Hero MotoCorp Ltd | Two Wheelers | 114,236.64 | 5,712.40 | 30.51 | 2.45 |
| Apollo Tyres Ltd | Tires & Rubber | 34,794.01 | 547.85 | 20.21 | 1.10 |
| Bosch Ltd | Auto Parts | 111,128.79 | 37,678.90 | 44.61 | 1.00 |
| JK Tyre & Industries Ltd | Tires & Rubber | 11,800.67 | 430.65 | 15.01 | 0.99 |
| CEAT Ltd | Tires & Rubber | 12,761.20 | 3,154.80 | 19.86 | 0.95 |
| Maruti Suzuki India Ltd | Four Wheelers | 416,206.13 | 13,238.00 | 30.86 | 0.94 |
| CIE Automotive India Ltd | Auto Parts | 21,145.66 | 557.40 | 18.79 | 0.90 |
| Schaeffler India Ltd | Auto Parts | 61,172.57 | 3,913.70 | 68.04 | 0.66 |
| Bajaj Auto Ltd | Two Wheelers | 344,770.05 | 12,345.95 | 44.73 | 0.65 |
| Mahindra and Mahindra Ltd | Four Wheelers | 370,839.70 | 3,094.90 | 32.91 | 0.63 |
Note: The top auto sector stocks in India are derived using Tickertape Stock Screener. The data is as of 30th September 2024, and the parameters are as follows –
- Stock Universe > Nifty 500
- Sector > Consumer Discretionary > Four Wheeler, Three Wheeler, Two Wheeler, Tires & Rubbers, Auto Parts
- Dividend Yield: Sorted from highest to lowest
Note that these stocks are in no order of preference. Please note that these stock selection criteria and the stocks are provided for informational purposes only; it is essential to conduct your own research.
Features of Automobile Stocks
- Cyclical Nature: Automobile stocks are highly cyclical, meaning they tend to perform better during periods of economic growth and can be more volatile during downturns.
- Wide Range of Companies: The automobile sector includes car manufacturers, commercial vehicle producers, and auto ancillary stocks that provide components like tires, batteries, and other parts.
- High Market Competition: Companies in the automobile industry face intense competition, both domestically and globally. In India, car manufacturers in India such as Maruti Suzuki and Tata Motors dominate the market.
- Innovation-Driven Growth: The rise of electric vehicles (EVs) and smart technologies is pushing automobile companies in India to invest in new technology, increasing growth potential in the sector.
- Global and Domestic Demand: Top automobile companies in India not only cater to the domestic market but also export to global markets, contributing to their overall profitability.
- Auto Ancillary Contribution: Auto ancillary stocks play a crucial role in the automobile supply chain, supporting the main car manufacturing companies in India with essential components.
- Interest in Auto Sector Stocks: Investors often track auto sector stocks due to their potential for high returns during periods of economic expansion, making them a key part of the nifty auto stocks list.
Why It Is the Right Time To Invest in Auto Stocks?
Most of the nifty auto index stocks have witnessed a surge in profit in the last financial years, and we believe the trend is going to be carried forward because of the following developments –
Growth potential
A report by rating agency ICRA stated that the domestic automotive industry is projected to experience growth in the high single-digit range during 2023-24. Further, the report indicates that in FY 2024, passenger vehicle demand is forecasted to increase by 6-9%, commercial vehicles by 7-10%, two-wheelers by 6-9%, and tractors by 4-6%.
Government initiatives
The Indian government announced a Production-Linked Incentive (PLI) Scheme with an outlay of $3.5 bn for the automobile and auto components sectors. The scheme offers up to 18% financial incentives to boost domestic manufacturing of advanced automotive technology products, attract investments, and encourage sales of locally manufactured products.
Technological advancement
By 2030, it is estimated that India is set to become a leader in shared mobility with a focus on electric and autonomous vehicles to reduce emissions. The electric vehicle market is expected to reach Rs. 50,000 cr. by 2025, potentially creating 5 cr. jobs by 2030.
Foreign investment
As demand grows, auto manufacturers have invested in various industry segments over the last few months. By this year’s end, the government expects the automobile sector to attract US$ 8-10 bn in local and foreign investments by 2023.
How to invest in Nifty auto stocks?
You can invest in Nifty auto stocks by following the below-mentioned process –
Step 1: Launch the Stock Screener
Step 2: Under the “Sectors” option in the filter panel on the left-hand side, select “Consumer Discretionary.”
Step 3: Under ‘Consumer Discretionary,’ select ‘auto parts’ from the drop-down, ‘four wheelers,’ ‘two wheelers,’ ‘three wheelers,’ and ‘trucks and buses.’
Step 4: Click the ‘Add Filter’ button to select key parameters to help you analyse a stock.
Step 5: Once you have added all your desired filters, go to each in the Filter Panel and adjust the range per your requirements.
Step 6: You can see all the auto stocks meeting your filter criteria.
Step 7: If you want to buy the stock, click on the stock and select ‘Place Order.’
Step 8: If you’ve already added your groww account or any other demat account, etc., on Tickertape, click on ‘Buy Now’ to complete the trade.
Step 9: If you want to save the screen for the future, click “Save” at the top of the filter panel.
Advantages of Investing in Auto Stocks
- Growth Potential: The automobile industry is evolving with innovations like electric vehicles (EVs). Leading players, including the top 10 car companies in India, are investing in these advancements.
- Established Companies: Investing in stocks from top automobile companies in the world offers exposure to well-established businesses with strong market positions.
- Domestic and Global Demand: Automobile companies in India serve both local and export markets, driving consistent growth.
- Dividend Opportunities: Some auto share companies offer regular dividends, providing income potential for investors.
Challenges of Investing in Auto Stocks
- Cyclical Nature: Auto sector stocks are sensitive to economic cycles, which can lead to stock price volatility.
- High Investment Needs: New automobile companies in India require large capital for expansion and innovation, which can affect profitability.
- Regulatory Pressures: Stricter environmental laws impact automobile manufacturing companies in India, potentially increasing costs.
- Intense Competition: Both domestic and international car manufacturers compete for market share, adding pressure on pricing and profits.
Factors to Consider When Investing in Auto Stocks
- Market Leadership: Investing in top 10 car companies in India or globally offers stability through strong brand presence and large car market share.
- Technology Focus: Companies investing in EVs or smart technologies, like the top automobile companies in world, could offer future growth potential.
- Financial Stability: Consider the financial health of automobile manufacturing companies in India, especially newer players.
- Economic Trends: As auto stocks are cyclical, keep an eye on overall economic conditions that impact sales and profitability.
Conclusion
India’s auto sector has recently been among the best-performing sectors, backed by consistent growth and strong returns. Moreover, most auto stocks are trading near their respective last 10-yr average PE multiples. This presents a great opportunity for investors looking to diversify and add auto stocks to their investment portfolios. However, consider your investment objectives and consult your investment advisor before taking any step.
FAQs
How many auto stocks are there on Nifty 50?
There are five auto stocks in Nifty 50, namely –
– Hero MotoCorp Ltd
– Maruti Suzuki India Ltd
– Bajaj Auto Ltd
– Mahindra and Mahindra Ltd
– Tata Motors Ltd
Name 4 top two wheeler companies listed on NSE.
Based on market capitalisation, the top two wheeler companies listed on NSE are as follows –
– Bajaj Auto Ltd
– TVS Motor Company Ltd
– Hero MotoCorp Ltd
Which Nifty large cap auto stock performed well in September 2024?
Bajaj Auto Ltd has generated a return of 16.98%, outperforming other auto stocks in Nifty 50.
What are the top 10 automobile companies in world?
The top 10 automobile companies globally include Toyota, Volkswagen, General Motors, Ford, Honda, BMW, Mercedes-Benz, and Hyundai. These companies dominate in terms of sales, innovation, and global presence.
Which are the top 10 automobile companies in India?
The top 10 automobile companies in India include Maruti Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra, Bajaj Auto, Hero MotoCorp, and Ashok Leyland. They lead in vehicle production and sales across different segments.
What is the car market share in India?
Maruti Suzuki holds the largest market share in India, followed by Hyundai and Tata Motors. Together, they account for a significant portion of the Indian passenger vehicle market.
As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.
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