The Indian economy has grown at the quickest rate in the entire globe. The car sector has advanced due to growing wages, rapid expansion, rising infrastructure expenditure and higher industrial incentives. Due to the middle class in India, the two-wheeler category dominated the car market, with 23.85 million vehicles sold in FY24.
Numerous producers of indigenous equipment and car parts emerged as a result of the high interest in automobiles. Consequently, India gained competence in autos and auto parts, which increased demand for Indian auto parts and automobiles abroad. As a result, the auto part sector is significantly impacted by the Indian car sector.
Also read: Bhavish Aggarwal: The man driving India’s EV revolution.
Overview of the auto parts industry
In FY24, local OEM (Original Equipment Manufacturer) supplies accounted for around 54% of the sector’s turnover, with national aftermarket coming in second at around 10% and exports at about 18%.
With an annual revenue of ₹ 6.14 lakh crore (US$ 74.1 billion) in FY24, the automotive parts sector had a 10% increase in revenue over FY23. In the national market, part sales to OEMs increased by 8.9% to ₹ 5.18 lakh crore, or $62.4 billion.
A five-year PLI (Production Linked Incentive) plan for automobiles and parts automobiles was authorised by the Indian Cabinet in November 2020.
To increase local production of innovative automotive technology goods and draw investments in the automotive manufacturing value chain, the PLI plan, which has a $3.5 billion budget, offers financial incentives of up to 18%. Starting on April 1, 2022, incentives will be given for certain sales of goods made in India for five years in a row.
3 top auto part stocks 2024
Based on market capitalisation the best auto parts stocks in India are listed below.
Samvardhana Motherson International Limited.
The main business activity of Motherson Sumi Systems is the distribution and production of parts to vehicle original equipment manufacturers. The company tops the list of the best auto parts stocks in India.
SAMIL is a well-established participant in the global market for external modules as well as polymer-based interiors. The company is one of the biggest producers of external rearview mirrors with a substantial market share.
The business has been able to create a global footprint across major product areas thanks to the improved functioning of acquired organisations. Through acquisitions, SAMIL has considerably broadened its revenue profile over time.
The company profits from a consistent stream of new orders from OEMs, especially in its three businesses,
- wire harness,
- modules and polymers
- integrated assemblies and vision systems
This is indicated by its automotive booked business of USD 83.9 billion on March 31, 2024.
| Time period | Revenue in billion USD |
| 30 September 2023 | 77.3 |
| 31 March 2024 | 83.9 |
| 30 September 2024 | 87.7 |
Also read: Top EV Battery Manufacturer Stocks to Invest in India.
Bosch Ltd.
Bosch Ltd. operates in the industrial, energy, automotive, consumer products, as well as manufacturing technology sectors. The commodities it produces are as follows.
- automotive aftermarket items,
- diesel and gasoline fuel injection systems,
- industrial machinery,
- industrial and consumer energy goods and solutions, and
- electrical power instruments security systems.
EBITDA increased 12.6% in 6M FY ’24 compared to 6M FY’25 and 14.1% Q-o-Q (Quater on Quater). Income growth and input cost reduction are the primary drivers of EBITDA‘s absolute growth.
The table below shows the sales performance of the company’s three primary sectors.
| Sector | Sales performance |
| Mobility Solution | 36,185 |
| Consumer Goods | 4,288 |
| Energy and Building technology | 1,170 |
Uno Minda Ltd.
The flagship business of the Uno Minda Group, Uno Minda Limited, serves as one of the most varied auto component producers in India, operating in several product categories. The firm leads the market in all component categories and is India’s biggest provider of switches for
- two-wheelers (2Ws),
- passenger cars (PVs), and
- automobile horns.
Additionally, in terms of capacity, it is the biggest producer of PV alloy wheels among the auto parts stocks in India. UML is a major participant in the automotive seating market for trucks, 2Ws, as well as commercial vehicles. It is the third-biggest supplier of automotive lighting equipment. Through its subsidiaries and joint ventures, it also holds a dominant presence in various product categories, including
- blow-molded goods,
- air filters,
- airbags,
- infotainment systems, etc.
Stock comparison
| Name | P/E | Mar Cap (₹ Cr.) | Div Yield (%) | NP Qtr (₹ Cr.) | Qtr Profit Var (%) | Sales Qtr (₹ Cr.) | Qtr Sales Var (%) | ROCE (%) |
| Samvardhana Motherson International Limited. | 30.31 | 114902.73 | 0.48 | 948.81 | 218.76 | 27811.86 | 18.48 | 13.68 |
| Bosch Ltd. | 51.40 | 102918.04 | 1.08 | 535.90 | 23.94 | 4394.30 | 6.40 | 20.61 |
| Uno Minda Ltd. | 67.45 | 60861.38 | 0.18 | 266.16 | 6.33 | 4244.79 | 17.22 | 19.94 |
Also read: Making Money in Stocks: A Beginner’s Guide to Investing.
Bottomline
India’s extensive economic progress has shown tremendous effect on the automobile sector. Thus, the auto parts companies are performing strongly. Investing in the top auto parts stocks may invite positive results if done cautiously.
FAQs
- What is the best auto parts stock to buy?
One of the industries in India that is anticipated to do very well in the future year is the car sector. As a result, we may anticipate strong returns from India’s top car part stocks.
Motherson Sumi Systems’ primary business operations are the manufacturing and distribution of components to automakers. The business is at the top of India’s list of the finest auto parts suppliers.
- Which auto stock is the best to buy?
Mahindra and Mahindra Limited is the strongest player commanding the biggest market share of the automobile industry. Ghulam Mohammad and two Mahindra brothers, KC and JC Mahindra, formed it in 1945. In 1948, it changed its name to Mahindra & Mahindra.
- Which is the best auto-ancillary stock?
The automobile sector of India is expected to perform substantially well in the upcoming year. Therefore we can expect good returns from the best auto part stocks in India as well. SAMIL is the best auto-ancillary stock. The main business activity of SAMIL is the distribution and production of parts for vehicle original equipment manufacturers. The company tops the list of the best auto parts stocks in India.
- Which is the fastest-growing auto stock in India?
Mahindra and Mahindra Limited is the fastest-growing auto stock. One of India’s most varied automakers, it operates 2-wheelers, 3-wheelers, PVs (Passenger Vehicle), CVs (Commercial Vehicle), tractors, and earthmovers.
- Which stock will boom in 2025 in India?
The economic trajectory of India is on a continued and sustained high. The capital markets are soaring up whilst maintaining a safe cushion. This is a great time for investors to invest in India Inc. through the stock market. Some industries which are expected to perform well are IT, Healthcare, Real estate, Renewable energy, FMCG and Automobile.
