The Covid-19 pandemic disrupted most of industries, and the auto industry was no exception. However, fast-forward to today, the auto sector is one of the fastest-growing sectors in the country. Auto companies are responsible to design, manufacture, and sell automobiles and many of them shine bright even in the global market.
In today's blog, we will see the top 5 auto stocks in India based on their market capitalization and see how they can be a good investment option.
1. Maruti Suzuki
Maruti Suzuki is one of the largest car manufacturers in the country, with every 1 out of 2 cars of this company. The company has been the most preferred car company for many years. Maruti Suzuki not only designs and manufactures automobiles but also produces spare parts and automobile components.
Its flagship model includes Alto 800, Swift, Ertiga, and many more. Maruti Suzuki also offers financing and insurance services.
- Maruti Suzuki Share Price as of July 2023: ₹9800+
- Market Cap: ₹2879.64 billion
2. Tata Motors
Tata Motors manufactures a wide range of vehicles including buses, trucks, cars, and tractors. The company is one of the oldest automobile companies founded by Ratan Tata in 1945. A leader in the commercial vehicle segment, Tata Motors is also in the top 3 players in the passenger vehicle segment.
Tata Motors has a diversified portfolio with a midsize, compact, and utility car segment. The company has key brands like Land Rover and Range Rover under its portfolio.
- Tata Motors Share Price as of July 2023: ₹621+
- Market Cap: ₹2057.18 billion
3. Mahindra & Mahindra
M&M is an international auto player and has nine segments under its wing. It has businesses in automobile, IT services, Farm equipment, Financial, and others. M&M offers services like hire/purchase of vehicles, financing services, automotive components, IT consulting, project management, and others.
- M&M Share Price as of July 2023: ₹1570+
- Market Cap: ₹1714.64 billion
4. Bajaj Auto
Bajaj Auto is a synonymous name in the two-wheeler industry. Bajaj Auto is part of one of the oldest conglomerates Bajaj Group.
Popular brands of motorcycles include Discover, Pulsar, Boxer, and many more. The company has interesting offerings in the pipeline with entry into the EV sector.
- Bajaj Auto Share Price as of July 2023: ₹4870+
- Market Cap: ₹1338.56 billion
5. Eicher Motors
Eicher Motors is one of the leading manufacturers of motorcycles, commercial vehicles, and other auto components in India. The company has established its footprint in the commercial vehicle segment with its years of expertise. Eicher Motors USB product is the Royal Enfield motorcycle, which is widely popular among the youth.
- Eicher Motors Share Price as of July 2023: ₹3250+
- Market Cap: ₹977.34 billion
Conclusion
The automobile sector presents a valuable opportunity to be added for diversification in your portfolio. However, as an investor, you need to know that the sector is cyclical and has relatively higher volatility.
In today's era, you can easily purchase any automobile stock with a click, and many trading apps have come far ahead in terms of services. Dhan's trading app for Android and other devices is one such option you can opt for and leverage their services to your advantage.
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