In 2022, the Indian automobile sector is estimated to do well as compared to the last year. Since the semiconductor shortages and supply chain issues are getting solved. The production will be continuous without any hindrance except for Covid-19 third wave. If there isn’t any major outbreak of covid-19 again, then the automobile sector of India will perform very well. And even if issues arise concerning the pandemic, it is expected that this sector will do a neutral performance. The favourable government policies regarding the auto sector will also help in the overall growth.
Around 7th March 2022, when most of the key stocks like the nifty50 index closed at a low, the automobile stocks emerged as the winner. While the Information Technology (IT) stocks experienced a burnout. Because of increased tractor sales, Mahindra & Mahindra saw a 28% increase.
Currently, the supply chain of the semiconductors will play a very crucial factor in the performance of the Indian automobile sector. As compared to 2021 this year the supply of the semiconductors will improve. It is estimated that in the second half of 2022, the demand for vehicles will restore to its usual.
With the Electric Vehicle getting popularised in India, the Automobile sector is set to flourish in the coming years. With all the trends and performances of the Indian auto sector, investing in the auto stocks from a medium-term and long-term perspective is very much favourable.
Since Automobile stocks seem profitable in the Long run, let us see some of the best stocks to invest in the Indian auto sector:
Top Stocks to Invest in the Indian Automobile sector:
Tata Motors: In 1945, Sir Ratan Tata founded Tata Motors. Today, it is a Giant in manufacturing cars, tractors, buses, and trucks. Being an old company and a company that is run by a personality like Ratan Tata, the public confidence is already high for such companies. With big brands like Jaguar Land Rover (JLR), Range Rover, etc. and its entry into the electric vehicle sector. The stocks of Tata motors will give good returns in a medium and long-term investment.
Mahindra & Mahindra: This is an automobile company with a large capital of Rs. 1,19,335. They deal in passenger vehicles, commercial vehicles, etc. With successful cars like Mahindra Thar, SUX, Scorpio, etc. Mahindra & Mahindra is a trusted automobile company in India. For now, on 31st May 2022, the stock price of Mahindra & Mahindra is at Rs. 1034.35 according to the Groww statistics.
Maruti Suzuki: With 50% of the market share in the Indian automobile sector, Maruti Suzuki is the biggest player in the automobile manufacturer space. The company is planning to raise the number of production units in India and plan an expansion both in India and in foreign countries. So, this stock is also a good option for medium-term and long-term investment.
To conclude, the Indian Automobile Sector will be growing a lot in the coming years. So putting your money in this sector for the long-term will be worth it.