Decoding the Indian Auto sector and investment opportunities that come with it.
Indian Automobile Industry plays a major role in the Indian economy. In 2019, it displaced Germany by becoming the fourth-largest auto market with the sale of 3.99 million units in the passenger and commercial vehicles categories. India is expected to become the third-largest passenger vehicle market by 2021.
As the youngsters’ population is growing significantly, the market of the two-wheeler segment of the industry is also growing at a high pace.
The $118 bn Automobile industry is expected to reach $300 bn by 2026. India’s annual production has been 30.91 mn vehicles in 2019 as against 29.08 mn in 2018, registering a healthy growth of 6.26%.
1- Mahindra– Mahindra and Mahindra Limited is an Indian multinational automotive manufacturing corporation. Its share price is 860.05 INR as of 2 March 2021 at 15:59.
2- Tata Motors- Tata Motors Limited is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India. Its share price is 345.25 INR as of 2 March 2021 at 3:30 pm IST.
3- Maruti Suzuki– Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an Indian automobile manufacturer company, founded by the Government of India in 1981, headquartered in New Delhi, India. Its share price is 7,223 INR as of 2 Mar, 3:30 pm IST.
4- Ashok Leyland– Ashok Leyland is an Indian multinational automobile company headquartered in Chennai, Tamil Nadu, India. It is owned by the Hinduja Group. Its share price is 132.65 INR as of 2 Mar, 3:30 pm IST.
During the estimated period 2020 to 2025, the Indian battery market is expected to rise by more than 15% at the CAGR. The Indian demand for batteries is already rising and is projected to flourish in the global market over the forecast period, as electricity sales increase in combination with increasing solar PV plants in the region, which will, in turn, drive the market, is growing.
1- Exide Industries Limited– It is an Indian storage battery producing company and a life insurance company headquartered in Kolkata, India. Its share price is 208.75 INR as of 2 Mar, 3:30 pm IST.
2- Indian Oil– Indian Oil Corporation Limited, d/b/a IndianOil, is an Indian public sector oil and gas company headquartered in New Delhi. It is the largest commercial oil company in the country. Its share price is 102.30 INR as of 2 Mar, 3:30 pm IST.
3- BHEL– Bharat Heavy Electricals Limited is an Indian public sector engineering and manufacturing company based in New Delhi, India. It is India’s largest power generation equipment manufacturer. Its share price is 51.55 INR as of 2 Mar, 3:30 pm IST.
4- Amara Raja– The Amara Raja Group is known for its automotive battery brand Amaron, the second-largest selling automotive battery brand in India after Exide Industries. Its share price is 908.25 INR as of 2 March.
India is the third-largest producer of coal as the country’s production stood at 729.10 million tonnes (MT) in FY20 and reached 361.46 MT in FY21 (as of November 2020). Fourth in terms of iron ore production worldwide and the production of iron ore in FY20 stood at 206.45 MT. India has ~8% of the world’s iron ore deposits.
India also became the world’s second-largest crude steel producer in 2019 with production at 111.2 MT and production of aluminum stood at 3.65 MT in FY20. Aluminum export from the country reached US$ 18.24 million in FY20 (till January 2020).
1- Graphite India Limited– It is the pioneer in India for the manufacture of Graphite Electrodes as well as Carbon and Graphite Speciality products. Its share price is 466.25 INR as of 2 March at 3:30 pm IST.
2- Aditya Birla Hindalco– Hindalco Industries Limited is an Indian aluminum and copper manufacturing company and a subsidiary of the Aditya Birla Group. Hindalco is one of the world’s largest aluminum rolling companies. Its share price is 344,70 INR as of 2 March at 3:30 pm IST.
3- Hindustan Copper Limited (HCL)- Hindustan Copper Ltd. is a Government-owned corporation in the Central Public Sector Enterprise under the Ministry of Mines, Government of India. Its share price is 151.00 INR as of 2 March at 3:30 pm IST.
4- NALCO– National Aluminium Company Limited is a mining, metal, and power company under the Ministry of Mines, Government of India. Its share price is 59.30 INR as of 2 March at 3:30 pm IST.
The Indian automotive auxiliary sector is one of India’s key industries, contributing 2.3% to the overall GDP. It is primarily motivated by the strategic partnership and the formation of internal market players for research and development. The sector, directly and indirectly, hires up to 1.5 million workers.
Costs are 10-25% lower compared to European and Latin American operations with a cost-competitive production base
1- JBM Group– JBM Group is a $2.2bn global conglomerate with operations in more than 25 locations across 10 countries throughout the world. They are the manufacturers of key auto systems, electric vehicles, and buses. Its share price is 424.40 INR as of 2 March at 3:30 pm IST.
2- UNO MINDA– It is a conglomerate engaged in the manufacturing, development, and sales of diverse auto components for the Global & Domestic Automotive Market. Its share price is 560.00 INR as of 2 March at 3:30 pm IST.
3- Motherson– Motherson Sumi Systems Limited was established in 1986 and is part of the Motherson Group. Motherson Sumi Systems Ltd. is a joint venture between Samvardhana Motherson International Ltd of India and Sumitomo Wiring Systems Ltd. of Japan. Its share price is 231.95 INR as of 2 March at 3:30 pm IST.
4- LT- Larsen & Toubro Limited, commonly known as L&T, is an Indian multinational technology, engineering, construction, manufacturing, and financial services conglomerate headquartered in Mumbai, Maharashtra, India. Its share price is 1,486.05 INR as of 2 March at 3:30 pm IST.
This post was last modified on March 3, 2021 4:04 AM
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