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Top Nifty Auto ETFs in India in 2026

Nifty Auto ETFs offer exposure to a basket of automobile and auto-related companies through a single exchange-traded product. These ETFs track the Nifty Auto Index and reflect the performance of companies involved in passenger vehicles, two-wheelers, commercial vehicles, tyres, and auto components. For readers trying to understand how this segment works, it helps to look at index composition, sector concentration, valuation, liquidity, and taxation before forming a view.

List of Best Nifty Auto ETFs in India for 2026

Nifty Auto ETF Stock Screener

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NameStocks (2)↓↓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.Nippon India Nifty Auto ETFAUTOBEESEquityEquity76.3776.37265.83265.83---0.71-0.718.018.01-3.44-3.4417.0317.03----------1.411.41
2.ICICI Prudential Nifty Auto ETFAUTOIETFEquityEquity35.4335.4326.6326.63---0.67-0.678.258.25-3.30-3.3017.1617.16----------1.391.39
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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 | Market Cap: Sorted from highest to lowest

What are Nifty Auto ETFs?

Nifty Auto ETFs are exchange-traded funds that track the Nifty Auto Index, which includes major listed automobile and auto-related companies in India. They offer exposure to the auto sector through a single market-traded instrument rather than buying individual auto stocks. Their returns generally track the underlying index, subject to tracking error.

Overview of the Best Nifty Auto ETFs

Nippon India Nifty Auto ETF

Nippon Auto ETF, also known as AUTOBEES, is an exchange-traded fund that tracks the Nifty Auto Index and provides exposure to major listed automobile and auto-related companies in India. It offers a simple way to participate in the sector through one market-traded instrument, with returns linked to the benchmark.

ICICI Prudential Nifty Auto ETF

ICICI Pru Nifty Auto ETF is an exchange-traded fund designed to track the Nifty Auto Index. It provides exposure to a basket of leading automobile and auto-related stocks through a single listed instrument. Its performance generally tracks the underlying index, subject to tracking error.

How to Invest in Nifty Auto ETFs?

Here's how you can use Tickertape to invest in Nifty Auto ETFs:

  1. Create an account on the Tickertape or log in if you already have one.
  2. Open Nifty Auto ETF Screener.
  3. Filter ETFs based on 200+ parameters. Tickertape provides comprehensive data on each stock, including financials, performance metrics, future projections, red flags, and more. You can review this data to assess each company’s health and potential in-depth. .
  4. Once you’ve decided on an ETF, you can place a buy order through your brokerage account linked to Tickertape.

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

Taxation on Nifty Auto ETFs

The tax treatment for Nifty Auto ETFs depends on the holding period. Since these are generally treated as equity-oriented ETFs, the capital gains tax rules are as follows:

Type of Gain Holding Period Tax Rate
Short-Term Capital Gains (STCG) 12 months or less 20%
Long-Term Capital Gains (LTCG) More than 12 months 12.5% on gains above ₹1.25 lakh

Benefits of Investing in Nifty Auto ETFs

Auto Sector Exposure

Nifty Auto ETFs track the Nifty Auto Index, which had 15 listed constituents as of 30 March 2026 across passenger vehicles, two- and three-wheelers, auto ancillaries, and tyres.

Access to Leading Auto Stocks

The index is tilted towards large auto companies. As of 30 March 2026, the top five weights were Mahindra & Mahindra (24.89%), Maruti Suzuki (15.22%), Bajaj Auto (9.17%), Eicher Motors (8.54%), and TVS Motor (7.45%). Together, they made up about 65.3% of the index.

Recent Sales Momentum

SIAM said passenger vehicles, two-wheelers, and three-wheelers posted their highest-ever January sales in 2026. Passenger vehicle sales were 4.50 lakh units, up 12.6% year-on-year. In February 2026, passenger vehicle sales were 4.18 lakh units, up 10.6% year-on-year.

Transparent Benchmark Data

As of 30th March 2026, the Nifty Auto Index had a 1-year total return of 12.78%, a 5-year return of 20.35%, and a since-inception return of 16.77%.

Listed and Rules-Based Structure

The index is computed using a free-float market-cap method and rebalanced semi-annually, making the construction process transparent.

Risks of Investing in Nifty Auto ETFs

High Sector Concentration

These ETFs are tied to one cyclical sector. If demand for vehicles, financing conditions, or input costs weaken, the ETF can be affected directly. The index itself only holds 15 stocks.

Large-Stock Dependence

The index is not evenly spread. The top five constituents accounted for roughly 65.3% of the index as of 30 March 2026, which means a small set of stocks can drive returns.

Higher Volatility

As of 30 March 2026, the Nifty Auto Index had a 1-year standard deviation of 20.14 and a beta of 1.23 relative to the Nifty 50, indicating higher sensitivity to market moves.

Valuation Risk

As of 30 March 2026, the index traded at a P/E of 28.10 and P/B of 4.07. That means price swings can matter more when expectations are already elevated.

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Factors to Consider Before Investing in Nifty Auto ETFs

Index Composition

Review the underlying index constituents first. As of 30 March 2026, the Nifty Auto Index included 15 companies across automobile manufacturers, auto ancillaries, and tyre businesses, with index weights tilted toward a smaller set of larger companies.

Sector Concentration

The auto sector is cyclical and is influenced by factors such as consumer demand, financing conditions, rural demand, input costs, and export trends. This can have a more visible effect in a sector-specific ETF than in a broad-based market ETF. SIAM’s January 2026 and February 2026 industry updates showed healthy sales momentum, though sector cyclicality remains an underlying feature of the space.

Valuation and Risk Metrics

As of 30 March 2026, the Nifty Auto Index had a P/E of 28.10, P/B of 4.07, dividend yield of 1.34, beta of 1.23, and a 1-year standard deviation of 20.14. These metrics help describe the index’s valuation and historical volatility profile at that point in time.

Rebalancing and Methodology

The Nifty Auto Index is reviewed semi-annually, with changes taking effect on the last working day of March and September. As a result, the ETF’s constituents and stock weights can change over time in line with the index methodology.

Tracking Error and Implementation

Fund documents for index-based products note that returns may differ somewhat from the benchmark because of tracking error and portfolio implementation factors. ICICI Prudential’s disclosed framework states that the annualised tracking error, measured using daily return differences, is expected not to exceed 2% except in unavoidable circumstances.

Conclusion

Nifty Auto ETFs provide a simple way to track the listed auto sector through one market-linked instrument. Their performance is shaped by the structure of the Nifty Auto Index, the cyclical nature of the automobile industry, valuation levels, tracking efficiency, and tax treatment. A clear understanding of these factors can help readers evaluate how Nifty Auto ETFs work and how they differ from broader market ETFs.

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Frequently Asked Questions on Nifty Auto ETFs

  1. What are Nifty Auto ETFs?

    A Nifty Auto ETF is an exchange-traded fund that tracks the Nifty Auto Index. It gives exposure to a group of listed auto and auto-related companies through a single market-linked product.

  2. Is there any ETF for the auto sector?

    The following are the best auto sector ETFs as of 9th April, 2026:
    1. Nippon India Nifty Auto ETF
    2. ICICI Prudential Nifty Auto ETF

    Disclaimer: This is for informational purposes only, not investment advice. Please do your own research or consult a SEBI-registered Investment Advisor.

  3. How do Nifty Auto ETFs work?

    Nifty Auto ETFs invest in the same stocks that form the Nifty Auto Index, usually in similar proportions. Their objective is to closely mirror the index’s performance, before expenses and tracking differences. Since they are traded on the stock exchange, investors buy and sell ETF units like shares.

  4. What are the advantages of investing in Nifty Auto ETFs?

    Nifty Auto ETFs offer sector-specific exposure in a single instrument. They make it easier to track a basket of auto stocks instead of following individual companies one by one. They also provide exchange-traded access, transparency of holdings, and a passive structure linked to a defined index.

  5. What are the risks of investing in Nifty Auto ETFs?

    Nifty Auto ETFs carry sector concentration risk because they are linked only to the automobile segment. Their performance can be affected by demand cycles, input costs, financing trends, rural recovery, exports, and broader economic conditions. Like other ETFs, they can also see tracking error and liquidity-related differences in market trading.

  6. Are Nifty Auto ETFs passively managed?

    Yes, Nifty Auto ETFs are generally passively managed. They do not aim to outperform the index. Instead, they seek to replicate the performance of the Nifty Auto Index as closely as possible.

  7. Are Nifty Auto ETFs a good investment?

    Whether Nifty Auto ETFs are suitable depends on an individual’s financial goals, risk tolerance, and view of the auto sector. Since they are sector-based products, their performance can be more concentrated than diversified equity ETFs. They are best understood as a way to gain exposure in the auto segment, not as a guaranteed-return product.

    Disclaimer: This is for informational purposes only, not investment advice. Please do your own research or consult a SEBI-registered Investment Advisor.

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.