Auto Sector Stocks in India to Invest In
Posted by : sachet | Mon Feb 17 2025
In recent times, auto sector stocks in India have become one of the most popular investment options. Unprecedented growth in the Indian automobile industry marked a significant rise in the prices of such stocks and provided investors with additional wealth. Automobile companies often declare high dividend payouts for investors, helping them meet their daily expenses and regain their interest in holding these shares.
Investing in automobile stocks in India could benefit investors in different ways. However, it is essential to choose the right company to invest in. This blog aims to better understand and identify the stocks with high growth potential. It also includes a thorough review of how to invest in such stocks and generate effective returns.
Automobile Sector in India: An Overview
Over 3.5 million two-wheelers were exported from India in 2024. The country has emerged as the 5th largest automobile manufacturer in the world. The automobile industry has recorded a growth of 12.5% this year and is also projected to grow with a CAGR (Compound Annual Growth Rate) of 8.20% by 2029. Investors can consider it a one-stop solution to build wealth in the long term.
The automobile sector includes a wide range of products, such as four-wheelers, commercial vehicles, two-wheelers, and large transport trucks. Domestic and international demand for these products contributes 50% to the manufacturing GDP (Gross Domestic Product). Automobile companies are expressing their keen interest in rural sectors. It could help us to generate higher returns by investing in auto sector stocks.
Automobile Stocks List By Market Capitalisation
| Stock Name | LTP (in ₹) | Market Capitalisation (in cr.) | 52-Week High (in ₹) | 52-Week Low (in ₹) |
| Mahindra & Mahindra Ltd. | 3,025.00 | 3,63,000 | 3,222.10 | 1,575.00 |
| Tata Motors Ltd. | 785.25 | 2,89,000 | 1,179.00 | 696.25 |
| Bajaj Auto Ltd. | 8,855.70 | 2,48,000 | 12,774.00 | 5,987.85 |
| Eicher Motors Ltd. | 4,764 | 1,31,000 | 5,105.00 | 3,562.45 |
| Ashok Leyland Ltd. | 233.77 | 68,640 | 264.65 | 157.55 |
| Escorts Kubota Ltd. | 3,434.20 | 37,770 | 4,420.00 | 2,648.40 |
| Force Motors Ltd. | 7,002.75 | 9,210 | 10,277.85 | 4,250.10 |
*Data is updated as of 5th December 2024
Overview of Auto Sector Stocks
- Mahindra & Mahindra Ltd.
Founded: 1945
Headquarters: Mumbai, Maharashtra
Market Capitalisation: ₹3,63,000 crores
Mahindra & Mahindra Ltd. is an automobile manufacturer that produces products such as SUVs (Sports Utility Vehicles), pickups, tractors, commercial vehicles, and multi-utility vehicles. Besides being a leading manufacturer in India, Mahindra also has an impressive global presence in countries like South Africa, Italy, the United States, Australia, and more.
Recently, Mahindra attracted the interest of its target customers by launching the SUV – BE 6E in the EV (Electric Vehicles) segment. The car has created hype with its 79KWH battery pack and offers a range of 682km on a single charge. This revolution of Mahindra encouraged most investors to focus on it as one of the best auto sector stocks in India.
- Tata Motors Ltd.
Founded: 1945
Headquarters: Mumbai, Maharashtra
Market Capitalisation: ₹2,89000 crores
Tata Motors Ltd. is part of the Tata Group, offering cars, vans, trucks, and buses to its extensive customer base. The company owns and operates two luxury brands, Landrover and Jaguar. Not only in India but Tata Motors has impeccable vehicle assembly operations in foreign countries like South Africa, Thailand, Spain, the United States, and South Korea.
Recently, Shri Ratan Tata, Chairman of Tata Sons, passed away. His passion for automobiles and decisions contributed most to the success of Tata Motors Ltd. Investors can still invest in this one of the best auto sector stocks in India because of its exemplified services and robust financial performance.
- Bajaj Auto Ltd.
Founded: 1945
Headquarters: Pune, Maharashtra
Market Capitalisation: ₹2,48,000 crores
Bajaj Auto Ltd. is a leading manufacturer of two-wheelers and three-wheelers in India. The company operates different manufacturing facilities across Chakan, Waluj, and Pantnagar. It was the first to introduce 4-stroke commuter motorcycles with higher performance in the Indian automobile sector. Bajaj handles around 84% of the country’s three-wheeler exports, making it one of the considerable automobile stocks in India.
- Eicher Motors Ltd.
Founded: 1948
Headquarters: New Delhi, India
Market Capitalisation: ₹1,31,000 crores
Eicher Motors Ltd. is the parent company of Royal Enfield, which manufactures commercial vehicles and two-wheelers in India. Moreover, the company has also expanded in areas like customised engineering, maps, travel guides, and management consultancy services. The company also has a joint venture with Volvo as VECV (Volvo Eicher Commercial Vehicles Ltd.) to meet the demand for big vehicles like trucks, buses, and more. If you are an investor looking for the best auto stocks in India to generate higher returns in the long run, you should consider Eicher Motors Ltd. in your wishlist.
- Ashok Leyland Ltd.
Founded: 1948
Headquarters: Chennai, Tamil Nadu
Market Capitalisation: ₹68,640 crores
Ashok Leyland Ltd., founded as Ashok Motors, is the 2nd largest commercial vehicle manufacturer in India. Recently, this company has signed an MoU (Memorandum of Understanding) with the government of Tamil Nadu to invest INR1,200 crores. It has also unveiled its 15-meter chassis in 2024. A diverse customer base and effective product portfolio helped Ashok Leyland Ltd. maintain its competitive position in the market. Investors with a long-term viewpoint can consider this as one of the potential auto sector stocks to buy in 2025.
- Escort Kubota Ltd.
Founded: 1944
Headquarters: Faridabad, Haryana
Market Capitalisation: ₹37,770 crores
Escorts Kubota Ltd. is involved in the manufacturing of automotive components, tractors, and railway equipment. Recently, in 2024, the NCLT (National Compay Law Tribunal) accepted the merger of Escorts Kubota India Pvt. Ltd. with Escort Kubota Ltd. and Kubota Agricultural Machinery India Pvt. Ltd. Investors focused on this news and analysed that this merger would significantly transform the growth of Escort, one of the automobile stocks in India.
- Force Motors Ltd.
Founded: 1958
Headquarters: Pune, Maharashtra
Market Capitalisation: ₹9,210 crores
Force Motors Ltd. is an Indian automobile manufacturer originated from the JV (Joint Venture) between Bajaj Auto Ltd. and Germany’s Tempo. The company has gained a reputation in the automobile industry in India with its products like Gurkha, Minidor, Traveller, and Matador. People know this company as the largest manufacturer of vans in India. Their JV with Rolls Royce Power Systems AG to manufacture high-powered engines made it popular in the market.
Auto Sector Stocks Stocks With PE Ratio and Buy Ratings
| Stock Name | PE (Price-to-Earnings) Ratio | Buy Ratings (in %) |
| Bajaj Auto Ltd. | 33.80 | 67 |
| Escorts Kubota Ltd. | 32.32 | 72 |
| Eicher Motors Ltd. | 30.64 | 84 |
| Mahindra & Mahindra Ltd. | 28.53 | 89 |
| Ashok Leyland Ltd. | 26.12 | 77 |
| Force Motors Ltd. | 19.37 | 98 |
| Tata Motors Ltd. | 6.88 | 78 |
*Data is updated as of 5th December 2024
How to Invest?
For some, investing in automobile stocks in India is easy. For others, it is a complex process. So, it is the right time to delve into the step-by-step guide to investing in such shares to collect high returns. Scroll to explore.
- Research the best auto stocks in India and identify the best among them to invest in.
- Open your demat account and select the quantity of stocks you wish to buy.
- Place a buy order through your demat account and execute it.
- Track your portfolio to identify the best time to book profit so that not to loose the returns.
Note: It is essential to stay informed about industry trends and risks when investing in the best auto stocks in India.
To Conclude
The automobile sector has proved to be a game changer for some investors looking to generate long-term returns. Companies have realised higher demand for two-wheeler and four-wheeler vehicles, increasing their sales and net profit. As a result, the growth potential of auto sector stocks has significantly increased. It is essential to conduct your own research when investing in these shares. Try Univest as your trusted stock partner to earn higher returns in the stock market!
FAQs
What factors to consider when investing in auto sector stocks?
Ans. Auto sector stocks in India come with high growth potential but are also sensitive to volatile markets and economic slowdowns. Investors should consider key factors like demand fluctuation, global concern, regulatory environment, government schemes, fuel prices, customer preferences, and technological innovations to cope with such stocks. Research the best auto stocks in India to invest your capital in the right place.
Which is the largest automobile manufacturer in India?
Ans. Maruti Suzuki Ltd. is the largest automobile manufacturer in India, with a market capitalisation of INR crores. This company is known for its reliable engines and affordable four-wheelers for the Indian market. Maruti’s share is trading at INR11,255.40, and its PE (Price-to-Earnings) ratio stands at 25.24.
What are the risks of investing in automobile stocks in India?
Ans. Investing in the best auto stocks in India often puts investors in uncertain situations. These are the risks of investing and impact the returns in the long run. The risks related to the automobile industry include regulation changes, fuel price increases, technological disruptions, and economic downturns.
Which auto sector stocks are good to buy in 2025?
Ans. Some of the best auto stocks in India for 2025 with their buy ratings.
| Stock Name | Buy Ratings (in %) |
| Bajaj Auto Ltd. | 67 |
| Escorts Kubota Ltd. | 72 |
| Eicher Motors Ltd. | 84 |
| Mahindra & Mahindra Ltd. | 89 |
| Ashok Leyland Ltd. | 77 |
| Force Motors Ltd. | 98 |
| Tata Motors Ltd. | 78 |
*Data is updated as of 5th December 2024
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52-Week Low Stocks Today
| Stocks | LTP (₹) | New Low (₹) |
| State Bank of India | ₹727.70 | ₹ 711.55 |
| Life Insurance Corporation of India | ₹ 765.15 | ₹ 744.95 |
| NTPC Limited | ₹ 302.35 | ₹ 292.8 |
| Tata Motors Limited | ₹ 686.60 | ₹ 667.05 |
| Power Grid Corporation of India Limited | ₹ 263.20 | ₹ 252.2 |
| Coal India Limited | ₹ 360.10 | ₹ 349.25 |
| DLF India Limited | ₹ 674.75 | ₹ 650.35 |
| Indian Oil Corporation Limited | ₹ 118.45 | ₹ 114.45 |
| Varun Beverages Limited | ₹ 474.55 | ₹ 470.05 |
| Jio Finacial Services Limited | ₹ 222.45 | ₹ 217.14 |
*Data is updated as of 17th February 2025.
52 Week High Stocks Today
| Stocks | LTP (₹) | New High (₹) |
| Reddington Limited | 242.91 | 255.76 |
| Aarti Pharmalabs Limited | 791.00 | 804.65 |
| Camlin Fine Sciences Limited | 149.29 | 151.00 |
*Data is updated as of 17th February 2025.
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