India’s motor industry is the third-largest automobile market in the world and contributes 35% to the country’s manufacturing GDP. It is rapidly evolving, with companies investing heavily in electric vehicle (EV) technology, sustainability initiatives, and innovative manufacturing to meet consumer demand and support India’s ambitious goals for reducing carbon emissions. A huge youth population and rising middle-class income are set to further increase the demand for automobiles in India.
Many top automobile companies are at the forefront of meeting this demand while keeping their financial standings at peak. Many SEBI-registered investment advisories are inclined to invest in the growing automobile sector of India through equity, such as Tata Motors share price. Some of these top companies (based on the market capitalization of the companies as of 13th November 2024) include-
| Name | CMP Rs. | P/E | Market Cap (Rs.Cr.) | ROCE % | Profit growth % | 1Yr return % | Net worth Rs.Cr. |
| M & M | 2,798.95 | 29.37 | 348448.2 | 13.58 | 9.84 | 81.72 | 70501.51 |
| Maruti Suzuki | 11,049.60 | 24.77 | 347316.55 | 21.82 | 22.75 | 6.26 | 89126 |
| Tata Motors | 786.25 | 9 | 289381.11 | 20.11 | 108.91 | 20.36 | 101062 |
| Bajaj Auto | 9,452.15 | 35.81 | 263943.48 | 33.53 | 7.74 | 74.23 | 30978.95 |
| Hyundai Motors | 1,739.95 | 23.75 | 141338.91 | 51.41 | 27.73 | – | 13067.26 |
| Eicher Motors | 4,588.70 | 29.46 | 125748.95 | 31.14 | 19.19 | 25.88 | 18979.55 |
| TVS Motor Co. | 2,385.75 | 60.05 | 113319.12 | 14.68 | 29.46 | 44.76 | 7759.02 |
| Hero Motocorp | 4,519.60 | 22.27 | 90,499.87 | 29.09 | 34.44 | 44.91 | 17698.92 |
| Ashok Leyland | 217.42 | 24.71 | 63,791.87 | 15.01 | 21.62 | 24.99 | 10311.57 |
| Escorts Kubota | 3,495.25 | 33.73 | 39,186.64 | 16.08 | 29.42 | 11.4 | 9836.88 |
Source: Screener
Overview of the companies:
1. Mahindra & Mahindra:
Known for SUVs and tractors, Mahindra has seen profit growth, mainly due to high demand for its SUV lineup and strong presence in rural areas through its tractor business. The company has also shown commitment to the EV sector. The company launched the XUV400 EV to compete in the compact SUV market and has ambitious plans for EV expansion through its new EV division, Mahindra Electric. It has also announced a major investment in Pune’s new EV manufacturing facility.
Mahindra holds a strong position in the Indian SUV market, with around 20% of the SUV segment as of 2023. In 2024, it increased its domestic SUV market share by 25% and clocked a record sales of 54504 vehicles in October 2024.
2. Maruti Suzuki:
As the market leader in India, Maruti Suzuki holds nearly half of the passenger vehicle (PV) market share. Known for its affordable and fuel-efficient vehicles, Maruti Suzuki has built itself as a household name. Thanks to popular models like the Alto, Swift, and Baleno, Maruti Suzuki’s market share in the passenger vehicle segment was around 41.7% in FY2023.
Maruti Suzuki also focuses on enhancing its CNG and hybrid lineup as part of its multi-fuel strategy. Although Maruti was initially slow to enter the EV market, it has recently accelerated efforts, with plans to launch its EV line by 2025. The company has also invested in hybrid technology to provide an alternative to EVs while infrastructure develops.
3. Tata Motors:
Tata Motors is a leader in India’s EV market, driven by models like the Tata Nexon EV and Tigor EV. Tata Motors is also gaining attention globally with its presence in over 125 countries. In addition to passenger EVs, Tata Motors is developing EV infrastructure, with plans to install 22,000 EV chargers in partnership with charge point operators. Its subsidiary, Tata Power, also builds solar energy solutions to support EVs.
4. Bajaj Auto:
Bajaj Auto, a top Indian two- and three-wheeler manufacturer, is widely known for models like Pulsar and Chetak EV. It is also the world’s largest manufacturer of three-wheelers that cater to various transportation needs. With a 36% domestic market share in the three-wheeler segment in FY2024, Bajaj’s revenue is also bolstered by international sales, which contribute around 45%.
The company also focuses on expanding its EV lineup, including electric versions of popular two-wheeler models, to stay competitive as EV adoption in India accelerates.
5. Hyundai Motors:
Hyundai is India’s second-largest car manufacturer, known for its high-quality and innovative models. Its portfolio includes popular models like the Creta, Venue, and i20. Hyundai has invested in EV and hybrid technologies, introducing the Kona EV in India as one of the country’s first fully electric SUVs.
The company is also working on expanding its EV lineup with models suitable for Indian roads. Moreover, the company aims to capture a 15% market share in the EV segment by 2025 with localized supply chains for EV components.
Industry Outlook and Challenges
India’s motor industry, driven by the Automotive Mission Plan 2016-26, is advancing with a clear vision toward sustainability and localization. With a projected investment opportunity of over Rs.16.88 lakh crore ($200 billion) by 2030, India is on track to become the largest EV market globally while the sector attracts more FDI and innovative solutions.
However, the industry faces challenges such as fluctuating raw material prices, infrastructure limitations, and the need for policy support for EV adoption. Nonetheless, with a strong push from top automakers like Tata Motors, Mahindra, and Maruti Suzuki, the future of India’s motor industry looks promising as it gears toward a green, tech-driven future.
These companies reflect the growth trajectory of India’s motor industry and play a vital role in achieving the country’s sustainability goals, setting benchmarks for innovation, and creating employment across the value chain.
