Mutual funds flock to India autos as EVs drive returns
Business
India's auto industry is getting a lot of love from mutual funds lately, thanks to strong returns and the electric vehicle, or EV, buzz.
The Nifty Auto Index has grown over 21% annually in the last five years, with standout stocks like Bharat Forge and Samvardhana Motherson leading the charge over the past year.
India electric cars sales up 83%
Auto sales are on a roll: passenger vehicles rose nearly eight%, two-wheelers over 10%, and EV retail sales rose 24.6% in FY26 (year ended March 2026). Electric cars saw especially huge growth at 83%.
With options ranging from active funds like SBI Automotive Opportunities to low-cost ETFs tracking the sector, experts say it's a promising space for long-term investors riding India's mobility wave.