On Thursday, SBI Mutual Fund, the biggest fund house in India, unveiled the Automotive Opportunities Fund. This unique active mutual fund is the first of its kind and focuses exclusively on investing in stocks of automobile companies and related businesses, both within India and abroad.

The investment firm and SBI Mutual Fund both believe that the combination of India's established expertise in automobile production and the increasing demand for vehicles worldwide presents a unique opportunity for the industry to expand its global footprint. They anticipate that with the right strategies and investments, Indian automobile manufacturers can capture a larger share of the international market, leading to substantial growth and increased profitability.

The investment firm and SBI Mutual Fund are both optimistic about the future prospects of the automobile industry in India. They believe that the industry's consistent profitability, coupled with the potential for expansion in global markets, makes it an attractive investment opportunity. With increasing income levels and limited market reach, Indian automobile manufacturers have the potential to capitalize on the growing demand for vehicles and significantly increase their export figures, leading to enhanced profitability and sustained growth.

The companies in this sector are expected to benefit from the increasing demand for premium automobiles and the growing adoption of electric vehicles, as stated by the fund house. Moreover, this trend also introduces new investment opportunities to consider.

The Deputy MD and Joint CEO, SBI MF, D P Singh said, “The Indian Automotive Industry is running in top gear as our country is a force to be reckoned with in terms of production of vehicles and auto exports while our burgeoning domestic market demands safer and premium vehicles. In addition, the manufacturing of auto parts and ancillaries contributes to almost 30 per cent of the manufacturing ecosystem, providing wealth-creation opportunities for investors in the long term. I believe policy reforms and a defined roadmap with the industry provide momentum and an opportunity for investors to benefit from India’s growing automotive ecosystem." 

 

SBI Mutual Fund highlighted that although India is already a leading producer of automobiles and their parts, the export figures remain relatively low, indicating significant potential for expansion in global markets.