Indian auto giants outperform global peers; Do you have any in your portfolio?

5 June 2023
3 mins read
Indian auto giants outperform global peers; Do you have any in your portfolio?

Remarkably, three Indian auto manufacturers feature among the top global automotive industry and achieved remarkable returns over the past two years.

The automotive sector holds immense significance and profitability for the global economy due to its ability to generate countless job opportunities and contribute to a country’s foreign exchange earnings. This article presents a list of the automobile companies in the world based on their market capitalization and highlights their returns over the past two years. Within this industry, a wide range of vehicles, including cars, SUVs, trucks, and buses, are manufactured by these companies.

In today’s global market, consumers rely on versatile vehicles that cater to various needs, whether it’s a solo commute to work or a family trip to the beach. The automotive industry encompasses several primary categories, including EV (Electric Vehicles), HEV (Hybrid Electric Vehicles), PHEV (Plug-in Hybrid Electric Vehicles), MHEV (Mild Hybrid Electric Vehicles), NGV (Natural Gas Vehicles), FCEV (Fuel Cell Electric Vehicles), diesel, and petrol-powered vehicles.

According to the report, the Global Automotive Industry is expected to grow at a CAGR of 3.71% by 2030.

These are the top Companies in the world by Market Capitalisation

Company Name Country Market Cap in $ Billion Stock Price in 2021 CMP 2 Year Return
Maruti Suzuki India 2899 INR 7275.65 INR 9595.75 32%
Tata Motors India 1942 INR 345.00 INR 540.00 57%
Mahindra & Mahindra India 1710 INR 803.85 INR 1374.85 71%
Tesla USA 678.17 $ 201.70 $ 213.97 6%
Hotai Motors Taiwan 452.78 $ 560.00 $ 829.00 48%
Toyota Japan 198.05 $ 180.80 $ 146.00 -19%
SAIC Motors China 159.73 $ 20.06 $ 13.67 -32%
Chongqing Changan China 116.51 $ 4.01 $ 3.52 -12%
BYD China 100.88 $ 49.44 $ 63.25 28%
GAC China 99.95 $ 6.91 $ 4.67 -32%
Volkswagen Germany 80.07 $ 38.35 $ 15.97 -58%
Mercedes-Benz Germany 78.16 $ 66.53 $ 72.24 9%
BMW Germany 69.98 $ 95.89 $ 106.16 11%
Ferrari Italy 50.50 $ 218.82 $ 298.60 36%
Ford USA 49.57 $ 15.88 $ 12.39 -22%
Honda Japan 49.16 $ 33.34 $ 29.59 -11%
GM USA 47.65 $ 63.23 $ 34.28 -46%
Stellantis Netherlands 46.00 $ 21.22 $ 14.79 -30%
Hyundai South Korea 35.64 $ 51.00 $ 40.41 -21%
Kia South Korea 33.55 W 90000.00 W 85900.00 -5%
Li Auto China 29.34 $ 26.68 $ 29.44 10%
Great Wall China 23.04 $ 30.00 $ 10.68 -64%
Suzuki Motors Japan 16.27 $ 176.47 $ 134.15 -24%
Nissan Motors Japan 15.018 $ 10.27 $ 7.66 -25%
Subaru Japan 13.513 $ 10.19 $ 8.81 -14%
NIO China 13.081 $ 43.68 $ 7.56 -83%
Geely China 12.27 $ 2.74 $ 1.22 -55%
Lucid Motors USA 12.1 $ 26.50 $ 6.60 -75%
Renault France 9.5 $ 34.51 $ 33.10 -4%

According to the data presented in a table, it is evident that three Indian companies such as Maruti Suzuki, Tata Motors, and Mahindra & Mahindra feature among the top global Automotive giants in terms of Market Capitalization. These companies have showcased impressive stock performance over the past two years, with returns of 32%, 57%, and 71% respectively. The trend of Electric Vehicles (EVs) is also booming, with consumers increasingly adopting this technology. In response, these companies are focusing on enhancing their production and sales of EVs, alongside substantial investments in research and development to improve their EV technology. Additionally, Tesla’s interest in entering the Indian EV market suggests that the competition will intensify for all automobile manufacturers in India once Tesla establishes its presence.