More investors are seeking smart investment opportunities, which is driving the growth of the investing sector. The stock market in India is one of the most extensive and diverse in the world, and investors can use technology to pick stocks with a high probability of doing well.
That being said, there will always be a need for automobiles and thus the automobile industry is strong. 49% of India’s manufacturing GDP and 7.1% of the country’s overall GDP come from the automobile sector. By 2030, sales of electric vehicles are anticipated to reach 10 million units annually, growing at a CAGR of 49% between 2022 and 2030. The EV sector will generate fifty million direct and indirect employment by 2030.
This blog will help investors better understand the best auto stocks to buy in India as of 2022.
List of Top Automobile Stocks
With such promising futures ahead, it makes sense to dedicate some of your portfolios to stocks in the automotive industry and look into the Top auto stocks in India.
The Indian auto sector is one of the fastest growing in the world and is anticipated to expand rapidly in the coming years. Some of the best auto sector stocks to buy in India are:
On our list of the top automobile companies in India, Maruti Suzuki Ltd. comes first. Over time Maruti Suzuki has developed unrivaled brand equity. The company has a broad range of products with models in each market segment. It emphasizes efficient cost-control strategies, adaptable production procedures, and continual process improvement.
With a stronghold in the entry-level market, Maruti intends to produce small and mid-size SUVs to reclaim lost market share. It also intends to introduce EVs in 2025. The gross margins of Maruti Suzuki are anticipated to grow as commodity prices begin to cool.
Want to Invest in Maruti Suzuki? Check out the Share Price of Maruti Suzuki on SMC
Tata Motors is among India’s largest automobile manufacturers and top automobile stocks. The company has a significant position in the passenger and commercial vehicle markets and provides a wide range of products.
By the year 2024, Tata Motors aims to become a debt-free company. It has also continually made investments in the rising EV market. Furthermore, in Q1FY23, Tata Motors increased its share in the local PV market.
In the most recent year and the previous three years, respectively, the share price of Tata Motors increased by 45% and 226%.
Want to Invest in Tata Motors? Check out the Share Price of Tata Motors on SMC
Next on our list of top automobile companies in India we have Hero MotoCorp Ltd. . It is a leading producer of bikes and scooters.
Hero MotoCorp, which was formerly known as Hero Honda, is a significant two-wheeler producer in India with a 37% market share, and it is based in New Delhi. It sold 13.90 lakh units in Q1FY23, registering a solid double-digit growth of 35.7%.
Want to Invest in Hero MotoCorp? Check out the Hero MotoCorp Share Price on SMC
Eicher Motors stands as the nation’s oldest active two-wheeler manufacturer. It has almost complete market control over middleweight bikes and is the parent company of the most famous Royal Enfield.
Additionally, it has a wide-ranging worldwide presence of more than 750 retail locations in more than 60 nations. It manufactures and ships its recognizable bikes from Chennai. Additionally, it has a joint venture (JV) with the Volvo company, which produces trucks and buses.
Want to Invest in Eicher Motors? Check out the Share Price of Eicher Motors on SMC
It is the world’s leading producer of three-wheelers and is considered among the top auto stocks in India. Bajaj Auto sets itself apart from other two-wheeler manufacturers in India with its unwavering focus on international markets. Both its brands and partnership with KTM have contributed to its expansion and presence in foreign markets.
As a result of becoming less dependent on a single region or product, it has been able to reduce risk. It exports more motorcycles and three-wheelers than any other country in India.
Want to Invest in Bajaj Auto? Check out the Share Price of Bajaj Auto on SMC
Factors to Consider before Buying Automobile Sector Stocks
There are several factors to consider before investing in stocks in the automobile sector in India.
- First and foremost, assessing the sector’s overall health is essential.
- This includes factors such as the growth of the sector, the competitive landscape, and the regulatory environment.
- Another critical factor to consider is the financial health of the companies in the sector. This includes their profitability, debt levels, and cash flow.
- It is also essential to assess the valuations of the stocks in the sector. This includes looking at factors such as price-to-earnings ratios and price-to-book ratios.
- Finally, it is important to have a clear investment strategy. This involves having a distinct vision of your goals and your strategy for achieving them.
The automobile industry anticipates continued rapid expansion and is anticipated to move up to the third-largest vehicle market in the world from its current fifth-largest position. This significantly increases the potential for expansion for India’s leading auto companies and auto stocks.
Additionally, a brand-new idea that is quickly gaining traction in this industry is electric automobiles.
Always do your thorough research before investing in auto sector stocks, and keep an eye out for any negative news that might significantly impact the share price.
Disclaimer: The provided information is solely for educational purposes. Investments in the stock market are prone to risk; before investing, thoroughly read all relevant documents or consult an expert.