Top 10 Automobile stocks in India 2022

Travel and commuting are a necessary part of our daily lives, whether it’s a quick journey to acquire groceries, business travel, or lengthy vacation travel. Automobiles are required for such trips. Autos include personal automobiles, taxicabs, buses, and trucks, among other vehicles. Because there will always be a need for autos, the auto industry has a bright future. In India, there are several automobile manufacturers. India is the world’s fourth largest car market by volume, after only China, the United States, and Japan. Car penetration in India is approximately 28 per 1000 people, compared to 180 in China and over 800 in the United States, indicating that the industry has a long runway ahead of it.

The greatest car stocks in India have been discovered and are listed in order of market capitalisation. In a populous nation like India, these enterprises service a large consumer base, hence their size is a good measure of their performance.

 Stocks having the largest market capitalization are listed first, and so on:

  1. Maruti Suzuki
  2. Tata Motors
  3. Hero Motocorp
  4. Bajaj Auto
  5. Eitcher Motors
  6. Ashok Leyland
  7. MRF
  8. Bosch
  9. Mothersumi
  10. Sona BLW

Detailed analysis of the above mentioned stocks

  • Maruti Suzuki

Maruti Suzuki Ltd is the best-performing car stock in India. In India, it produces autos. It was founded in the year 2001. Before being acquired by a Japanese automaker, Suzuki Corporation Ltd, the company was known as Maruti Udyog Ltd. It has its headquarters in Delhi. Its goods include a variety of automobiles, mostly passenger cars, with 16 different models including hatchbacks, sedans, SUVs, and more. It not only manufactures vehicles but also offers automotive maintenance. More than 2.5 crore automobiles have been sold. The company accomplishes this by operating 3,500 unique vehicle dealerships. Each month, the company services around 14.75 lakh autos. Gurgaon and Manesar are production centres for the company. It also exports to over 90 different nations.

  • Tata Motors

The company was created in 1945, before the country gained independence. Mumbai is the company’s headquarters.

It produces a variety of automobiles, including passenger cars, trucks, sports cars, luxury cars, and construction equipment.

Every year, the company sells over ten thousand automobiles. Each year, its sales reaches 2 lakh crores. It is sold both in India and beyond. The United Kingdom, Korea, South Africa, China, and Brazil are among these countries.

  • Hero MotoCorp

For the 19th year in a row, Hero MotoCorp has maintained its status as the world’s largest two-wheeler manufacturer. The firm is well-known in rural India and has long been a market leader in the entry and deluxe motorbike segments. With ‘Ather Energy,’ it has expanded its product portfolio by entering the scooter, luxury motorbike, and electric vehicle markets. It has also partnered with Gogoro to establish a battery-swapping network in India. In July, the business unveiled its first electric scooter under a new brand called “Vida.” It has been able to acquire enormous size by focusing on customer experience, expanding the distribution network and institutional sales, investing in brand building initiatives, and ramping up R&D.

  • Bajaj Auto

Another two-wheeler manufacturer that has established itself through time is Bajaj Auto. What sets Bajaj Auto apart from other Indian two-wheeler manufacturers is its unwavering focus on international markets. Its own brands, as well as its relationship with KTM, have fueled its expansion and presence in foreign markets. By not being overly reliant on any one area or product, it has been able to de-risk. It is India’s top exporter of motorcycles and three-wheelers. Until the motorbike boom in the 1990s, Bajaj Auto was the market leader in the scooter sector. The scooter sector is thriving again, and the firm is bringing back its renowned Chetak scooter brand in an electric form to meet demand.

  • Eitcher Motors

 Eicher Motors Ltd is the sixth largest automobile company in India. This company is the country’s oldest operating two-wheeler manufacturer. Last year, it produced and sold 609,403 bikes. This was accomplished via the company’s network of over 2000 studio stores and dealerships around the country. It also has a large worldwide network of over 750 retail locations in over 60 countries. It has three production plants, all of which are located near Chennai. Royal Enfield is one of the company’s most popular brands.

  • Ashok Leyland

Ashok Leyland Ltd is the first company to make the honourable mentions list of heavy vehicle stocks to purchase. It creates large commercial vehicles. The company is a subsidiary of the Hinduja Group. Its headquarters are in Chennai. Trucks, defence vehicles, buses, and diesel engines are among the company’s offerings. The Company’s product demand is likely to rise significantly as the Make in India movement gains traction.

  • Bosch

The company makes automobile parts and provides automotive technology solutions. Passenger vehicle batteries, nickel spark plugs, and wiper blades are among the company’s offerings. The year the company was founded was 1951. The company operates 16 production facilities and seven R&D centres. It generates Rs.10,000 crores in annual income. The market capitalization of Bosch Ltd is Rs 47,215 crores. The business is technology-focused and technology-driven. This makes it a long-term investment. As an additional business, the company focuses on creating sustainable energy. This is an emerging market category as well.

  • Moterson Sumi

Motherson Sumi Systems is a specialist full-system solution supplier that serves customers in the automobile industry. It is a back-end service provider for the automotive industry. Wiring harnesses, vision systems, modules and polymers, precision metals, and solutions are among the company’s offerings.

It has 230 production units in 40 different countries. With a market capitalization of Rs.70,723 crores, the company has an annual sales of USD 8.2 billion. Over the previous 20 years, it has risen at a consistent and strong CAGR of 33%. A Vision 2025 has been drawn out by the company. With a 40 percent ROCE for investors, it hopes to rapidly expand revenue. It focuses on one-of-a-kind breakthroughs including smart vehicle dynamics, immersive customer experiences, and excellent manufacturing, among others.

  • MRF

MRF is India’s leading manufacturer and one of the top 20 tyre manufacturers in the world. It is also India’s largest Original Equipment Manufacturer (OEM) tyre provider, offering a wide choice of tyres for anything from motorcycles to fighter jets. MRF is known for its commitment to constant quality improvement and client satisfaction. MRF was the first Indian manufacturer to export tyres, and it continues to dominate the export market in 65 nations.

  • Sona BLW

The business is a leading supplier of automotive parts and components.

The year it was founded was 1995. It is the world’s leading supplier of parts for electric vehicles. Starters, generators, alternators, gearboxes, couplings, and other products are among the company’s offerings. India accounts about 25% of its earnings, with the rest coming from exports to Europe and the United States.

It has an annual turnover of Rs.1566 crores and a profit after tax of around 200 crores. It is a fast-growing firm with a market capitalization of Rs.3915 crores. Its income has increased by 51 percent in the last year alone. It is developing new products to satisfy the demands of the emerging electric vehicle industry in India. It also earns more money through exports. This implies it generates more money from developed economies and customers who pay more.

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