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Automobile stocks are ownership shares in companies that make, sell, and come up with new ideas for the automotive sector. There are both well-known giants and exciting newcomers in this sector, which makes it a lively place for investors to consider.
So, should you invest in automobile stocks? If yes, then what are the best auto stocks you should look for? This article highlights the top 5 Automobile Stocks, including their share prices and market caps that could revise your portfolio. Let’s begin.
5 Best Auto Stocks in India
Here are the best auto stocks in India. These auto stocks on the NSE (National Stock Exchange) are the top picks, standing tall above others.
1. Ashok Leyland
Ashok Leyland Ltd (ALL) stands out in India’s commercial vehicle industry, holding a strong 32% market share in the Medium and Heavy Commercial Vehicle (MHCV) segment. Recognized as a top player, it’s considered a substantial investment in the auto stocks category.
Having a significant presence and impact in the Medium and Heavy Commercial Vehicle (MHCV) market makes Ashok Leyland a favourable company for investors. This has made the company a good choice for people who want to invest in the Indian automobile industry.
- Ashok Leyland share price (As of January 2023): ₹175+
- Market Capitalization: Rs. 51,499 Cr
2. Eicher Motors
Eicher Motors, India’s oldest two-wheeler manufacturer, dominates the middleweight bike market and owns the renowned Royal Enfield brand.
With over 750 retail outlets in 60+ countries, it’s a global player. Headquartered in Chennai, the company is well-known for its motorcycles.
Eicher Motors also has a joint venture with Volvo to manufacture trucks and buses. Looking at the numbers, Eicher Motors (NSE: EICHERMOT) has done well in the past year. Their EBIT margins, a measure of profitability, have increased from 18% to 20%. This means the company is making more profit for every rupee of sales.
- Eicher Motors share price (As of January 2023): ₹3,900+
- Market Capitalization: Rs. 1,05,220 Cr
3. Hero Motocorp
Hero MotoCorp, based in New Delhi, is a top player in India’s two-wheeler market, holding a substantial 37% share. Formerly known as Hero Honda, the company recorded impressive growth with a 35.7% increase, selling 13.90 lakh units in Q1FY23.
With a solid track record and a significant market presence, Hero MotoCorp is considered one of the most promising auto stocks for investment in India. Hence, this makes it an attractive choice for investors seeking success in the dynamic automotive industry.
- Hero Motocorp share price (As of January 2023): ₹4,300+
- Market Capitalization: Rs. 82,817 Cr
4. Bajaj Auto
Bajaj Auto is a top auto stock in India, known for making three-wheelers and motorcycles. What makes it stand out is its global focus, exporting more vehicles than any other Indian company.
Partnering with KTM and smart brand choices helped it expand internationally, reducing risk. Bajaj Auto’s stock has given investors more than a 65% increase in their money so far this year, from January 2023 until now.
- Bajaj Auto share price (As of January 2023): ₹7,200+
- Market Capitalization: Rs. 1,99,728 Cr
5. TVS Motors
TVS Motors, a major player in India’s two-wheeler market, is set for significant growth. With a consistent 24.5% annual growth, the company is poised for a decade of expansion, fueled by robust demand for motorcycles and scooters in India.
TVS also extends its reach by manufacturing cars under the Jupiter brand, which are available through various dealerships and online platforms like Amazon India and Flipkart.
- TVS Motors share price (As of January 2023): ₹2,000-+
- Market Capitalization: Rs. 95,967 Cr
Investors seeking exposure to the growing Indian automotive sector should consider investing in auto stocks.
Conclusion
Automobile stocks represent shares in companies involved in the automotive industry, offering investment opportunities for those interested in this sector. Investors should consider market trends, company performance, and their own risk tolerance before diving in.
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