What is an Automobile ETF?

An Automobile ETF is an exchange-traded fund that invests in a basket of automobile and auto-ancillary companies. It usually tracks indices such as the Nifty Auto Index, offering broad exposure to vehicle manufacturers, component suppliers, and mobility-related businesses through a single fund.

Which is the best auto ETF?

As of 8th January 2026, the following are the best auto ETFs as per 1-year return: ICICI Prudential Nifty Auto ETF Nippon India Nifty Auto ETF ICICI Prudential Nifty EV & New Age Automotive ETF Disclaimer: The above auto ETFs list in India is for educational purposes only and should not be considered investment advice.

How do Nifty Auto ETFs work?

Nifty Auto ETFs replicate the Nifty Auto Index by holding the same stocks in the same proportion as the index. When the index changes due to rebalancing or sector movement, the ETF adjusts its holdings accordingly. The ETF’s value moves in line with the performance of the underlying auto companies.

Are Auto ETFs passively managed?

Yes, most Auto ETFs are passively managed. They follow a predefined index and do not rely on active stock selection. The fund manager’s role is to mirror the index composition and maintain tracking accuracy rather than make discretionary investment calls.

Are Auto ETFs a good investment?

Auto ETFs can offer diversified exposure to the automobile sector, which may benefit from industry volume trends, EV adoption, and economic cycles. However, outcomes depend on sector performance, index composition, demand patterns, and regulatory developments. Disclaimer: This does not constitute any recommendation. Investment suitability depends on individual research, financial goals, and market conditions.

How to sell automobile ETFs?

Automobile ETFs can be sold on the stock exchange using your demat account by placing a sell order during trading hours. The transaction completes at market price and settles normally.

List of Best Automobile ETFs in India 2026

India’s automobile industry showed strong performance in 2025. Passenger vehicle wholesales reached a record 45.5 lakh units. This reflected healthy consumer demand along with policy support such as GST reforms. Two-wheeler and passenger car retail sales also recorded notable year on year growth. Electric vehicle segments continued to expand. E two wheelers and EV passenger volumes rose sharply as more buyers adopted cleaner mobility options.

Top Automobile ETFs in 2026

Automobile ETF Stock Screener

Automobile ETF Stock Screener: Analyse & Filter Indian Stocks on Tickertape

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	NameStocks (5)↓	↓Sub-SectorSub-Sector↓	↓Market CapMarket Cap↓	↓Close PriceClose Price↓	↓PE RatioPE Ratio↓	↓1D Return1D Return↓	↓1M Return1M Return↓	↓6M Return6M Return↓	↓1Y Return1Y Return↓	↓PB RatioPB Ratio↓	↓Return on EquityReturn on Equity↓	↓ROCEROCE↓	↓Dividend YieldDiv Yield↓	↓Debt to EquityDebt to Equity↓	↓Volatility vs NiftyVolatility vs Nifty↓
1.	Mirae Asset Nifty EV and New Age Automotive ETF EVINDIA	EquityEquity	81.8681.86	30.8530.85	--	0.750.75	-4.16-4.16	5.805.80	6.566.56	--	--	--	--	--	1.341.34
2.	Nippon India Nifty Auto ETF AUTOBEES	EquityEquity	81.3281.32	285.10285.10	--	1.141.14	-3.91-3.91	16.6616.66	18.9518.95	--	--	--	--	--	1.401.40
3.	Groww Nifty EV & New Age Automotive ETF GROWWEV	EquityEquity	54.8054.80	30.6430.64	--	0.390.39	-4.28-4.28	4.864.86	5.765.76	--	--	--	--	--	1.401.40
4.	ICICI Prudential Nifty Auto ETF AUTOIETF	EquityEquity	37.8337.83	28.6328.63	--	1.091.09	-3.51-3.51	17.2417.24	19.0919.09	--	--	--	--	--	1.421.42
5.	ICICI Prudential Nifty EV & New Age Automotive ETF EVIETF	EquityEquity	6.866.86	30.9330.93	--	0.880.88	-3.94-3.94	6.036.03	18.4618.46	--	--	--	--	--	1.321.32

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Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Selection criteria: Based on publicly available information | Sorted by market capitalisation from highest to lowest.

Overview of Top Automobile ETFs in India

Mirae Asset Nifty EV and New Age Automotive ETF

This ETF tracks the Nifty EV and New Age Automotive Index. The index includes companies involved in electric vehicles and new automotive technologies. The ETF gives exposure to the fast growing electric vehicle market and next generation automotive innovations. It gives investors a stake in this evolving sector.

Nippon India Nifty Auto ETF

Nippon India Nifty Auto ETF replicates the Nifty Auto Index. The index comprises leading Indian automotive companies. It includes car manufacturers, two wheeler manufacturers and parts suppliers. The ETF gives investors an easy way to access India's auto industry.

Groww Nifty EV & New Age Automotive ETF

Groww Nifty EV and New Age Automotive ETF tracks the Nifty EV and New Age Automotive Index. The index focuses on companies involved in electric vehicles and advanced automotive technologies. The ETF gives diversified exposure to the automotive sector’s shift toward sustainability and innovation. It includes EV manufacturers and related technology companies.

ICICI Prudential Nifty Auto ETF

ICICI Prudential Nifty Auto ETF tracks the Nifty Auto Index. The index comprises leading Indian auto companies across passenger vehicles, two wheelers and auto parts. The ETF gives investors exposure to the automotive industry, which is a key sector in India’s economy. It benefits from domestic and export market growth.

ICICI Prudential Nifty EV & New Age Automotive ETF

This ETF tracks the Nifty EV and New Age Automotive Index. The index focuses on electric vehicle manufacturers and companies working on new automotive technologies. The ETF gives investors exposure to the growth of EVs and new mobility solutions. These areas play a central role in India’s transportation progress and sustainability plans.

What are Automobile ETFs?

Automobile ETFs are exchange traded funds that invest in a basket of stocks from companies in the automotive industry. These ETFs track an automotive index that may include companies involved in making vehicles such as cars, trucks and two wheelers. They also include companies that produce automotive parts and electric vehicles. Automobile ETFs give exposure to the global or regional automotive sector. The basket usually includes traditional automobile manufacturers as well as new age companies that work on electric and autonomous vehicles. The structure spreads the exposure across multiple companies which reduces the reliance on a single stock.

How to Invest in Automobile ETFs?

Here's how you can invest in Automobile ETFs using Tickertape -

Create an account on the Tickertape or log in if you already have one.
Open Tickertape Stock Screener
Filter Automobile ETFs screener based on various parameters such as market cap, close price, past returns and more. You can review this data to evaluate each ETF’s performance trends and determine whether they align with your investment thesis.
Once you’ve decided on an ETF, you can place a buy order through your brokerage account linked to Tickertape.

You can also stay updated on alerts and announcements for your favourite stocks with Tickertape Alerts. Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!

Advantages of Investing in Automobile ETFs in India

Exposure to a Growing Auto Market

India’s passenger vehicle wholesales reached a record 45.5 lakh units in 2025, reflecting resilient demand across segments, including SUVs and passenger cars. This broad industry growth can benefit ETFs tracking auto indices.

Participation in Electric Vehicle Adoption

Electric vehicle registrations in India crossed 2 mn in 2025, indicating accelerating EV adoption and supporting ETFs with EV components or OEMs focused on electrification.

Strong Two-Wheeler and Commercial Sales Trends

The two-wheeler and three-wheeler segments remain significant, with registrations and production rising, supporting diversified auto ETFs rather than single-company exposure.

Export-Led Demand Drivers

India’s automotive exports grew ~19 % to over 5.3 mn units in FY25, strengthening global demand exposure for ETFs holding export-oriented auto stocks.

Component Industry Expansion

The automotive component sector reported ₹6.73 lakh cr turnover in FY25, growing nearly 10 % YoY, highlighting supply-chain strength that benefits ETFs, including auto ancillary stocks.

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Risks of Investing in Automobile ETFs in India

Cyclical Demand Risk

Auto volumes can fluctuate with macro conditions. Some segments, such as small cars and certain commercial vehicles, have shown uneven performance despite overall sales growth.

Policy and Tax Sensitivity

Recent tax cuts and GST reforms have boosted car sales, but future policy shifts could affect demand patterns and auto-sector profitability.

EV Adoption Uncertainty

While EV registrations exceeded 2 mn, penetration varies across regions and vehicle types, leading to uneven contributions to ETF performance

Commodity and Input Cost Volatility

Auto production remains sensitive to steel, semiconductor, and battery costs, which can compress margins for companies in auto ETFs.

Factors to Consider Before Investing in Automobile ETFs

Segment Divergence

Different sub-segments (ICE vs EV, two-wheelers vs passenger vehicles) can show divergent cycles, complicating performance for broad automobile ETFs.

Index Composition and Stock Weighting

Automobile ETFs track indices such as the Nifty Auto or EV-focused indices, where top holdings (Maruti Suzuki, Tata Motors, M&M, Bajaj Auto) can account for over 50% combined weight. Understanding these weightings helps gauge how much the ETF depends on a few large manufacturers for performance.

EV vs. ICE Exposure

With EV registrations crossing 2 mn in 2025, ETFs tilted toward EV-oriented companies may move differently from those dominated by internal combustion engine (ICE) players. Evaluating this balance helps understand how the ETF might react to shifts in India’s electrification pace.

Macroeconomic Sensitivity

Auto sales are highly cyclical and linked to income growth, credit availability, and festive demand. For instance, FY25 passenger vehicle wholesales hit a record 45.5 lakh units, driven partly by GST benefits. ETFs with high OEM exposure may fluctuate as macro conditions change.

Auto Component Industry Influence

The auto components sector recorded a turnover of ₹6.73 lakh cr in FY25, up ~10% YoY. ETFs that include auto ancillaries depend not only on OEM sales but also on supply chain stability, commodity prices, and component exports.

Taxation on Automobile ETFs

Automobile ETFs follow capital gains tax rules linked to the holding period. Tax rates differ for short-term and long-term gains.

Holding Period	Tax Treatment
Short-Term (< 12 months )	Gains taxed at a flat rate of 20% (increased from the previous 15%).
Long-Term (> 12 months)	Gains taxed at 12.5%. Exemption applies to the first ₹1.25 Lakh of long-term gains across all equity assets in a financial year.

Conclusion

Automobile ETFs bring diversified exposure to India’s evolving mobility ecosystem, from traditional OEMs to EV-focused companies. Their performance is closely linked to industry volumes, electrification trends, export demand, and macroeconomic conditions. For deeper analysis, investors can use the Tickertape ETF Screener to compare ETFs using detailed metrics and filters.

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Frequently Asked Questions on Automobile ETFs

What is an Automobile ETF?
An Automobile ETF is an exchange-traded fund that invests in a basket of automobile and auto-ancillary companies. It usually tracks indices such as the Nifty Auto Index, offering broad exposure to vehicle manufacturers, component suppliers, and mobility-related businesses through a single fund.
Which is the best auto ETF?
As of 8th January 2026, the following are the best auto ETFs as per 1-year return:
Disclaimer: The above auto ETFs list in India is for educational purposes only and should not be considered investment advice.
How do Nifty Auto ETFs work?
Nifty Auto ETFs replicate the Nifty Auto Index by holding the same stocks in the same proportion as the index. When the index changes due to rebalancing or sector movement, the ETF adjusts its holdings accordingly. The ETF’s value moves in line with the performance of the underlying auto companies.
Are Auto ETFs passively managed?
Yes, most Auto ETFs are passively managed. They follow a predefined index and do not rely on active stock selection. The fund manager’s role is to mirror the index composition and maintain tracking accuracy rather than make discretionary investment calls.
Are Auto ETFs a good investment?
Auto ETFs can offer diversified exposure to the automobile sector, which may benefit from industry volume trends, EV adoption, and economic cycles. However, outcomes depend on sector performance, index composition, demand patterns, and regulatory developments.
Disclaimer: This does not constitute any recommendation. Investment suitability depends on individual research, financial goals, and market conditions.
How to sell automobile ETFs?
Automobile ETFs can be sold on the stock exchange using your demat account by placing a sell order during trading hours. The transaction completes at market price and settles normally.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.