The auto sector is one of the best-performing and fastest-growing sectors in India. A wide range of vehicles including cars, bikes, scooters, and even tractors come under this industry.

This industry is expected to grow over the next few years due to several factors including rising disposable income, strong demand for cars and trucks, and increasing government focus on infrastructure development.

Moreover, attractive credit schemes like longer tenure EMIs, buyback guarantees, and other sweeteners are fueling the sales of automobiles.

As this industry grows at an exponential rate, there are a number of stocks that are always in the headlines.

The best Indian automobile stocks to invest in are:

• Maruti Suzuki: It is a leading automobile manufacturer in India. It is the largest car manufacturer in India with a market share of 50%. It is focused on the business of manufacturing and sale of passenger and commercial vehicles. It also sells aftermarket parts and accessories under the brand name, Maruti Suzuki Genuine Parts and Accessories. With a market cap of Rs 3,17,912 crore, its share price stands at Rs 10,569.55.

• TATA Motors: It is the leading manufacturer of trucks, buses, trackers, and cars. The company has been in operation since 1992. The company’s key brands include Jaguar Land Rover (JLR), Land Rover, Jaguar and Range Rover. Tata Motors also owns two other major automobile manufacturers, including Daewoo Commercial Vehicles Co Ltd (DCVL) and Tata Daewoo Auto Ltd. It holds a market cap of Rs 2,49,770 crore.

• Mahindra and Mahindra: This company’s automotive segment comprises the sale of automobiles, spares, mobility solutions, construction equipment, and related services. It offers a range of products and solutions including SUVs, pickups, commercial vehicles, and tractors to electrical vehicles, two-wheelers, and construction equipment. It has a market cap of Rs 1,96,987 crore.

• Bajaj Auto: This is an India-based manufacturer of two-wheelers, three-wheelers, and quadricycles. The companies engaged in the business of the development, manufacturing, and distribution of automobiles such as motorcycles, commercial vehicles, electric two-wheelers, and parts. It holds a market cap of Rs 1,59,299 crore.

• Hero MotoCorp: It is a manufacturer of motorcycles, scooters, and auto-rickshaws in India, based in New Delhi. The company was established in 1984 and has a market capitalization of Rs 66,664 crore. It is one of the largest manufacturers of two-wheelers in India. It offers motorcycles, scooters, and auto-rickshaws under the Hero brand name. The company also manufactures engines for other automobile companies such as Mahindra & Mahindra (M&M), Tata Motors, and Ford Motor Company.

• TVS Motors: This Indian company is engaged in the manufacturing of motorcycles, scooters, mopeds, three-wheelers, parts, and accessories. With a market cap of Rs 83,028 crore, the company has been growing at an annual rate of 15% over the past few years and it is expected to continue this trend over the next decade as well.

• Eicher Motors, Samvardhana Motherson, Balkrishna Industries, Bosch, and Ashok Leyland as some of the other stocks in the auto industry to look at. 

Despite the ongoing upward trend in auto stocks, they are highly volatile because they depend on consumer sentiment and industry trends which change frequently.