Top Auto Stocks in India 2022 – Kuvera

The state of the automotive industry in a nation is closely correlated with its overall economic health. The Indian automobile industry is a major force behind the nation’s economic expansion. It accounts for more than one-third of the nation’s manufacturing GDP, making it the largest industry within manufacturing. More than 3.7 billion people are employed directly and indirectly by this industry. The automobile industry contributes 15% of the nation’s overall GST receipts.

 

These things are true, but there is also another reality. And that is, there has been a slowdown in the expansion of the Indian automobile stocks. Even before the Covid-19 outbreak began, the Indian auto sector was experiencing a significant structural downturn.

 

kuvera-fixed-deposit-online

 

In the five years between 2005 and 2010, the passenger vehicle segment grew at a CAGR of 12.9%. This decreased over the following five years, from 2010 to 2015, to 5.9%. From 2015 to 2020, this further decreased, reaching barely 1.3%. Similar to this, from 2000 to 2010, the two-wheeler market grew at a CAGR of 9.8%. This growth rate decreased to 6.4% in the following ten years, from 2010 to 2020. The CAGR for the three-wheeler market dropped from 9.8% to 3.8% over the same decadal periods, while the CAGR for commercial vehicles dropped from 12.7% to barely 3%. The issues facing the industry have gotten worse thanks to Covid-19. It has caused the industry to advance in a bad direction by many years. At the end of FY 2020–21, total sales for the passenger vehicle segment, two-wheeler segment, and commercial vehicle segment were all below their respective levels from 2015–16, 2014–15, and 2010–11. The three-wheeler market has been the hardest damaged, with sales being delayed by roughly 20 years.

 

Issues Faced By Auto Sector

 

Industry is currently dealing with a number of short- and long-term issues. In the face of the pandemic’s uncertainties, protecting our people’s health and safety comes first. In addition, there is a global shortage of semi-conductors, rising commodity prices, particularly for steel and precious metals, a lack of shipping containers, and import limitations in the form of quality control orders, among other supply chain issues. Within the next two years, there will be new restrictions that will again have a big financial impact. Auto sector stocks is currently focused on the industry’s sustainable development, lowering the cost of vehicles for consumers, increasing the local content of our products, anticipating long-term regulations, and creating new powertrain technologies to get as close to Carbon Net Zero as possible.

 

Auto Industry Role In Indian Economy

 

The Indian automobile sector is essential to the nation’s economy, whether it is in terms of development, accessible mobility options, consumer confidence, or achieving global prominence. Through backward and forward linkages, the auto sector in India contributes 6.4% of the nation’s GDP and directly and indirectly employs 8 million people. India ranks first in the production of two- and three-wheelers, second in the production of heavy buses, fifth in the production of heavy trucks, fourth in the production of cars, and ninth in the production of light commercial vehicles worldwide. The strategies are the actions that the sector has made over time, particularly over the past 15 years in:

 

  • Democratising access to transportation via both public and private means

 

  • Promoting “Brand India” abroad.

 

  • Making sure energy security.

 

  • Living among other industries.

 

  • Implementing worldwide standards for manufacturing, safety, and emissions.

 

  • Creating enduring communities.

 

  • Promoting ongoing skill development.

 

  • Elevating consumer awareness.

 

  • Promoting environmental protection, sustainable development, and social green.

 

  • Highlighting the world’s expertise in automotive engineering.

 

The sector is the country’s main growth engine because it produces the most jobs in India and is one of the biggest global centres for R&D and manufacturing. A billion people are moved everyday by the Indian auto industry for both work and leisure, and each and every one of these movements results in an increase in economic activity and revenue generating. India’s success narrative over the years has been shaped by this sector’s tenacity and aspiration to make the nation’s people and goods mobile, bridging the gap between the rural and urban landscapes. The industry has come a long way since turning mobility into an attainable reality from an idealistic concept.

 

The country’s manufacturing production decreased, and supplies began to run out as the pandemic’s economic toll peaked. Despite these difficult times, the auto sector made many efforts to contribute back to society. This did not stop the manufacturers from their desire to build the country properly. The industry members stepped forward to offer their support through different relief measures, including the production of medical oxygen, ventilators, PPE kits, surgical masks, and sanitizers, along with the provision of basic medical facilities, the management of community kitchens, and the generous donation of funds to the Central & State Governments’ relief funds.

 

Auto Stocks / Sector Performance In 2020-2021

 

In April through March 2021, the auto stock sector produced a total of 22,652,108 vehicles, including passenger cars, commercial trucks, three-wheelers, two-wheelers, and quadricycles, compared to 26,353,293 during the same period in 2020, representing a decline of (-) 14.04 percent.

 

In comparison to the same period last year, the sale of passenger vehicles fell by (-) 2.24 percent in April through March 2021. Sales of passenger cars and vans decreased by 9.06 percent and 17.62 percent, respectively, while sales of utility vehicles rose by 12.13 percent from April through March 2021 compared to the same period in the previous year. In comparison to the same period last year, the Commercial Vehicles segment as a whole experienced a de-growth of (-) 20.77 percent in April through March 2021. When compared to the same period in 2020, sales of Medium & Heavy Commercial Vehicles (M&HCVs) and Light Commercial Vehicles (LCVs) fell by (-) 28.40 percent and (-) 17.30 percent, respectively. In comparison to the same period last year, sales of three-wheelers decreased by (-) 66.06 percent in April–March 2021. In comparison to April-March 2020, the number of passenger carriers and goods carriers operating three-wheelers decreased by (-) 74.49 percent and (-) 26.38 percent, respectively.

 

Sales of two-wheelers decreased by (-) 13.19% from April through March 2021 to April through March 2020. Scooters, Motorcycles, and Mopeds all had declines within the Two Wheelers segment in April-March 2021 compared to April-March 2020 of (-) 19.51 percent, (-) 10.65 percent, and (-) 3.07 percent, respectively.

 

Exports The total amount of automobile exports fell by (-)13.05 percent from April to March 2021. Exports of passenger cars, commercial vehicles, three-wheelers, and two-wheelers all experienced declines of (-) 38.92%, (-) 16.64%, (-) 21.67%, and (-) 6.87%, respectively.

 

Top 8 Auto Stocks In India – Market Cap Basis (As On 21 September 2022)

Here is the list of a detailed table with various parameters of Best Auto Stocks

 

Sr. No Company Name NSE  Market Cap Share Price as of 21st Sep Industry
1 Maruti Suzuki NSE: MARUTI ₹2.8 Lac Cr ₹9,272.95 Automobile
2 Tata Motors NSE: TATAMOTORS ₹1.6 Lac Cr ₹427.70 Automobile
3 Hero Motocorp NSE:HEROMOTOCO ₹55,477.6 Cr ₹2,785.80 Automobile
4 TVS Motors NSE:TVSMOTOR ₹50,727.4 Cr ₹1,067.75 Automobile
5 Bajaj Auto NSE:BAJAJ-AUTO ₹1.1 Lac Cr ₹3,731.80 Automobile
6 Eicher motors EICHERMOT ₹1.0 Lac Cr ₹3,675.05 Automobile
7 Ashok Leyland ASHOKLEY ₹47,599.6 Cr ₹162.15 Automobile
8 M&M NSE: M&M ₹1.6 Lac Cr ₹1,306.40 Automobile

 

  • Maruti Suzuki – 280,117 Crore

 

Maruti Suzuki India Limited, formerly Maruti Udyog Limited, is a New Delhi-based Indian car manufacturer. It was established in 1981 and was held by the Indian government until 2003, when Suzuki Motor Corporation of Japan purchased it.  Maruti Suzuki auto stocks has a market share of 44.2 percent of the Indian passenger car market as of February 2022.

 

Suzuki Motor Corporation was a small partner when Maruti Udyog Limited was first established by the Government of India on January 24, 1981. However, in August 2021, Suzuki became the official JV partner and licence holder, replacing Maruti Udyog Limited. In the same year, Maruti opened its first manufacturing facility in Gurugram, Haryana.  A licence and joint venture agreement (JVA) was signed by Suzuki of Japan and Maruti Udyog Ltd. in 1982. Initially, Maruti Suzuki was primarily an automobile importer. In the first two years of India’s closed auto stocks market, Maruti was granted permission to import two completely assembled Suzuki vehicles, and even then, the initial target was to employ only 33% domestic components. This greatly displeased the nearby manufacturers. There were some worries that the Indian market wouldn’t support Maruti Suzuki’s relatively high production levels, and the government even considered changing the petrol tariff and decreasing the excise fee to increase sales. With the release of the SS30/SS40 Suzuki Fronte/Alto-based Maruti 800 in December 1983, local production got underway. The Maruti Van, which had the same three-cylinder engine as the 800, was introduced in 1984, and the Gurgaon plant’s installed capacity increased to 40,000 vehicles.

 

The Suzuki SJ410-based Gypsy, a 970 cc 4-wheel drive off-road vehicle, was introduced in 1985. The 100,000th car manufactured by the firm was the 796 cc hatchback Suzuki Alto (SS80), which succeeded the original 800 in 1986. The business began exporting to western markets in 1987 when a shipment of 500 automobiles was transported to Hungary. The Gurgaon plant’s capacity was raised to 100,000 units annually by 1988. The Current Share Price of Maruti Suzuki Auto Stocks is Rs 9,272.95

 

  • Mahindra and Mahindra  162,410 Crore

 

Mumbai serves as the home base for the Indian multinational company known as Mahindra Group. With operations in more than 100 nations, the group is active in a variety of industries, including aerospace, agribusiness, aftermarket automotive components, construction equipment, defence, energy, farm equipment, finance and insurance, industrial equipment, information technology, leisure and hospitality, real estate, retail, and education. Mahindra & Mahindra, the group’s core business, leads the utility vehicle and tractor markets in India.

 

The brothers J. C. and K. C. Mahindra, Malik Ghulam Muhammad, and Mahindra & Mahindra established Muhammad & Mahindra in 1945 in Ludhiana, Punjab, to trade steel. Malik Ghulam Muhammad left the business after India was divided in 1947 and moved to Pakistan, where he became the first finance minister of the new state (and later the third Governor General in 1951). Mahindra & Mahindra became the official name of the business in 1948 under K. C. Mahindra.

 

The Mahindra brothers started trading steel with UK suppliers by using their knowledge of the steel industry. In 1947, they started making Willys Jeeps after winning a contract to do so. The business was listed on the Bombay Stock Exchange by 1956, and by 1969 it started exporting utility cars and parts. Mahindra expanded into new industries in response to the Licence Raj’s limitations, as did many other Indian businesses. In 1982, Mahindra & Mahindra established a tractor division; in 1986, they established a tech division (now known as Tech Mahindra). Through both joint ventures and greenfield investments, it has kept expanding the diversity of its business operations. 

 

The company underwent a fundamental reorganisation in 1994 as a result of its increasing diversity, creating six Strategic Business Units: Automotive, Farm Equipment, Infrastructure, Trade and Financial Services, Information Technology, and Automotive Components (known internally as Systech).

 

 Anand Mahindra, the new managing director, followed this reorganisation with the successful introduction of the Mahindra Scorpio (a car entirely designed domestically) in 2002 and a new logo in 2000. These adjustments, together with a revamp of the company’s production and manufacturing processes, helped it become more competitive, and ever since then, the Group’s reputation and earnings have seen a noticeable increase. Mahindra & Mahindra is currently one of India’s 20 largest enterprises. Mahindra was listed among the top 200 most respectable firms in the world by Forbes in 2009.

 

To unify Mahindra’s image across businesses and regions, the Mahindra Group introduced a new corporate brand in January 2011 called Mahindra Rise. Mahindra’s brand supports consumers’ aspirations to “Rise” by positioning its goods and services as aspirational. The Mahindra Group indicated an interest in acquiring the insolvent automaker Saab in April 2012. It made numerous proposals for Saab, but Saab’s new owner, National Electric Vehicle Sweden, outbid the Mahindra Group. The Current share price of M&M Auto stocks is Rs.1306.40.

 

  • Tata Motors – 142,217 Crore

 

Tata Motors, one of the top automakers in the world, is a member of the USD128 billion Tata group, which Jamsetji Tata founded in 1868. By providing cutting-edge mobility solutions that support consumers’ aspirations, it adhere to the philosophy of “Connecting Aspirations.” With the introduction of cutting-edge powertrains and electric solutions packaged for power performances and user comfort at the lowest life-cycle costs, it continues to take the lead in forming the Indian commercial vehicle landscape. Based on Impact Design, our new passenger cars and utility vehicles provide an exceptional fusion of performance, driveability, and connection.

 

It remains at the top of the market thanks to our commitment to linking aspirations and its pipeline of tech-enabled products. It has identified six important mobility trends that will guide us into the future: shared mobility, clear drivelines, connected & autonomous vehicles, modular architecture, and low total cost of ownership. Its sub-brand, TAMO, is a hub for innovation that is incubating new mobility solutions through innovative business models, technology, and collaborations. The Current  Share Price of Tata Motors Auto Stocks is Rs 427.20

 

  • Eicher Motors -100, 499 Crore

 

The parent company of the world’s leading manufacturer of middleweight bikes, Royal Enfield, is Eicher Motors Limited. Royal Enfield has been producing its distinctive motorcycles continuously since 1901, making it the oldest motorcycle brand in the world. With contemporary development facilities in Leicestershire, England, and Chennai, India, Royal Enfield operates in India and over 60 other countries with a focus on bringing back straightforward, fun, and accessible riding. The Royal Enfield motorcycles are produced in Chennai, Tamil Nadu. A brand with experiential elements has emerged with Royal Enfield. The motorcycle made by Royal Enfield, which mixes contemporary features with the company’s tradition, is extremely popular among riders all over the world.

 

Along with producing motorbikes, Eicher also partners with AB Volvo of Sweden to form Volvo Eicher Commercial Vehicles Limited (VECV), which is responsible for modernising commercial vehicles in India and other developing nations. From 4.9 to 55 tonnes, VECV offers a full line of trucks and buses, and its integrated manufacturing facility in Pithampur, Madhya Pradesh, serves as the world’s primary supplier of Volvo Group’s medium-duty five- and eight-litre engines. The Current Share Price of Eicher Motors Auto Stocks is ₹3,675.05

 

  • Bajaj Auto – 107,933 Crore

 

The Bajaj brand is undoubtedly “The World’s Favourite Indian,” having sold more than 18 million motorcycles in more than 70 nations. It is India’s top exporter of motorcycles, with two out of every three vehicles exported abroad sporting a Bajaj logo. The business is also the biggest three-wheeler producer in the world. The first two- and three-wheeler firm in the world to reach a market capitalization of INR one trillion, Bajaj Auto is still the most valuable two- and three-wheeler company in the world today. Bajaj is well-liked not only in India but also in 70 other nations.

The Current Bajaj Auto Share Price is ₹3,731.80.

 

Conclusion

 

To Protect you from the wrong choices, it is adivasble to do the research on current and top auto stocks in India, which fits your financial goals. Indian auto sector are better situated than most other auto companies of the world because of the ever-expanding size of the Indian middle class. India will likely overcome China and become the world’s most populous country. 

 

Interested in how we think about the markets?

Read more: Zen And The Art Of Investing

 

 

Start investing through a platform that brings goal planning and investing to your fingertips. Visit kuvera.in to discover Direct Plans and Fixed Deposits and start investing today.
#MutualFundSahiHai #KuveraSabseSahiHai #PersonalFinance #InvestorEducation


Leave a Comment