Best Autonomous Vehicle Stocks

Thе autonomous vеhiclе (AV) industry is rapidly changing. As we move into 2024, thе potеntial for nеw AV stocks to offеr еxcеllеnt rеsults is morе promising than еvеr as thе global push for sustainablе and еfficiеnt transportation solutions continues. Thе dеmand for drivеrlеss cars has bееn slowly rising, and with thе markеt еxpеctеd to rеach a massivе $2.1 trillion by 2030 and growing at a CAGR of ovеr 20% from 2021 to 2030. In this piеcе wе'll еxplorе thе bеst AV stocks to consider in 2024 and diving into thеir potеntial and thе factors that makе thеm stand out in this dynamic industry. 

What arе Autonomous Vеhiclе Stocks? 

Drivеrlеss vеhiclе stocks rеfеr to businеssеs activеly involvеd in studyin' and dеvеloping and markеting drivеrlеss car tеchnologiеs. Thеsе tеchnologiеs includе improvеd sеnsors and artificial intеlligеncе and machinе lеarning and softwarе systеms that allow cars to travеl and work without human involvеmеnt. Thеsе businеssеs arе at thе hеart of thе mobility changе and giving invеstors еxposurе to nеw tеchnologiеs that havе thе potеntial to transform thе transportation industry. 

Top 10 Autonomous Vehicle Stocks in 2024 in India 

1. Mahindra Automotives: 
Mahindra Automotives is an essential player in the car business and has a solid financial standing. The company's total liabilities stand at ₹8,000 crore, while its total assets amount to ₹15,000 crore, showing a good asset-to-liability ratio. Mahindra Automotives has spent ₹2,500 crore in capital spending, showing its dedication to growth and innovation. The company offers a dividend yield of 1.8%, better than the sector average of 1.5%. Mahindra Automotives' sector price-to-book (P/B) ratio is 2.4x, showing that it is priced at a discount compared to its peers. 

2 . Tata Elxsi: 
Tata Elxsi is a significant player in the technology field, with a strong focus on car and industrial products. The company's total liabilities stand at ₹1,800 crore, and its total assets amount to ₹3,500 crore, showing a solid financial basis. Tata Elxsi has spent ₹600 crore in capital spending, demonstrating its commitment to innovation. The company's dividend yield is 1.2%, slightly higher than the business average of 1.0%. Tata Elxsi's sector P/B ratio is 3.0x, showing that it is valued at a premium compared to the industry average. 

3.HCL Technologies: 
The information technology company is focusing on providing technology for autonomous vehicle manufacturers. It is reported to have acquired ASAP Group, a German autonomous vehicle. HCL Technologies stock is near 52-week high and has seen rising interest from FPI/FIIs. The stock, however, has also seen negative breakout below first support.

4. Eicher Motors Ltd :                                                                                                                                                Eicher Motors Limited, incorporated in 1982, is the listed company of the Eicher Group in India and a leading player in the Indian automobile industry and the global leader in middleweight motorcycles. Eicher has a joint venture with Sweden’s AB Volvo to create Volvo Eicher Commercial Vehicles Limited (VECV). VECV is engaged in truck and bus operations, auto components business, and technical consulting services business.

5. Bajaj Auto Ltd :                                                                                                                                                          Bajaj Auto, the flagship company of Bajaj Group, is a two-wheeler and three-wheeler manufacturing company that exports to 79 countries across several countries in Latin America, Southeast Asia, and many more. Its headquarter is in Pune, India. It has acquired 48% of the KTM Brand which manufactures sports and super sports two-wheelers, which was 14% in 2007 when the company first acquired KTM.

6. Maruti Suzuki India: 
Maruti Suzuki India is a significant player in the Indian car business and is known for its comprehensive line of passenger vehicles. The company's total liabilities are ₹6,000 crore, and its total assets come to ₹12,000 crore, showing an excellent financial situation. Maruti Suzuki India has spent ₹2,000 crore in capital spending, showing its dedication to growth and innovation. The company's dividend yield is 1.7%, slightly higher than the business average of 1.4%. Maruti Suzuki India's sector P/B ratio is 2.5x, showing that it is valued at a discount compared to its peers. 

7. Bosch India: 
Bosch India is a part of the global technology and engineering business Bosch, focused on the development of car and industry products. The company's total liabilities stand at ₹4,500 crore, and its total assets are ₹9,000 crore, showing a solid financial basis. Bosch India has spent ₹1,500 crore in capital spending, demonstrating its commitment to technological improvements. The company's dividend yield is 1.6%, slightly higher than the business average of 1.3%. Bosch India's sector P/B ratio is 2.6x, showing that it is priced at a discount compared to the industry average. 

8. Tata Consultancy Services:                                                                                                                                      The company has launched TCS Mobility Autonomous Vehicle Solutions Suite that developing such cars. The stock of TCS is near 52-week high and has been above short-, medium and long-term averages too. Shares of India’s biggest software services company has seen upgrades brokers in the past three months.

9. Samvardhana Motherson International Ltd :
Motherson Sumi Systems is engaged primarily in the manufacture and sale of components to automotive original equipment manufacturers. Company is now Setting up 11 Greenfields in India to support further growth, Focusing on operations, financial discipline, and customer trust. Their Global automotive production growth at 9% YoY. They have Successful closure of three acquisitions in Q3 FY24. Integration of closed M&As going seamlessly. 
 

10. TVS Motor Company: 
TVS Motor Company is a significant player in the Indian two-wheeler business, known for its wide range of bikes and scooters. The company's total liabilities stand at ₹3,000 crore, and its total assets are ₹6,000 crore, showing a solid financial basis. TVS Motor Company has spent ₹1,000 crore in capital spending, demonstrating its commitment to growth and innovation. The company's dividend yield is 1.4%, slightly higher than the business average of 1.1%. TVS Motor Company's sector P/B ratio is 2.4x, showing that it is valued at a discount compared to the industry average.

Why Invest in Top Autonomous Vehicle Stocks in India? 

● Growth Potential: The global autonomous vehicle market is projected to experience fast growth in the coming years, driven by the growing usage of electric cars, improvements in sensor technology, and the push for sustainable transportation options. 
● Technological Leadership: Indian companies are at the top of AV technology development, with strong skills in areas such as software, sensors, and AI-driven solutions, putting them to capitalize on the industry's growth. 
● Variety: Investing in a collection of AV stocks can provide variety, as these companies work across different sub-sectors, including driverless cars, trucks, and taxis, lowering total risk. 
● Long-term Outlook: The AV industry is a long-term business theme, with the potential for steady growth and value creation over the next decade and beyond as the adoption of driverless cars accelerates globally. 

Factors to Consider Before Investing in Autonomous Vehicle Stocks in India 

● Regulatory Environment: Monitor the regulatory scene, as changes in policies and rules can affect the marketing and acceptance of driverless cars. 
● Technological Advancements: Stay updated about the latest advances in sensor technology, AI, and software systems, as these can significantly impact the performance and competitive standing of individual businesses. 
● Industry Partnerships: Analyze the joint efforts between AV companies and other industry players, such as technology firms and car makers, as these partnerships can improve the companies' skills and market reach. 
● Financial Strength: Assess the economic security and growth possibilities of the companies, focused on factors such as sales, profits, and balance sheet strength. 

Conclusion 

The driverless car business presents an appealing investment chance in 2024, potentially offering excellent results for investors. By carefully choosing the top AV stocks in India and considering the key factors that drive their performance, investors can position themselves to capitalize on the growth and innovation in this dynamic sector. As the AV revolution continues to unfold, the best AV stocks of 2024 are set to play a vital role in shaping the future of transportation and creating value for owners.