The automotive industry is undergoing a profound transformation driven by technological innovation and changing consumer preferences. Also, Electric vehicles (EVs), autonomous driving, and advanced mobility solutions are reshaping the landscape.

Thus, investors looking to capitalize on this transformative trend might consider BYD Company Limited (BYDDY), Isuzu Motors Limited (ISUZY), and Suzuki Motor Corporation (SZKMY) for promising growth.

One of the most significant changes in the industry is the shift toward EVs. In the third quarter of 2024, the sales of EVs in the United States grew by 11% year-over-year, and EVs' share hit 8.9%, the highest recorded since last year. The growth in sales is fueled by incentives and discounts from the government and growing environmental awareness.

The global automotive industry is projected to grow at a 6.8% CAGR, reaching $6.86 trillion by 2033. Advancements in technology, environmental policies, and increasing consumer demand for sustainable and innovative vehicles have fueled this shift.

Autonomous driving technology is another frontier driving excitement in the auto sector. Firms at the forefront of developing self-driving capabilities are becoming game-changers, revolutionizing logistics, ride-sharing, and personal transportation. The progress in AI and sensor technology is accelerating these developments.

Considering these encouraging trends, let’s take a look at the fundamentals of the three best Auto & Vehicle Manufacturers industry stocks, beginning with the third choice.

Stock #3: BYD Company Limited (BYDDY)

Headquartered in Shenzhen, China, BYDDY engages in the automobiles and batteries business.  The company operates in two segments: Mobile Handset Components, Assembly Service and Other Products; and Automobiles and Related Products and Other Products.

On November 14, BYDDY entered into a strategic partnership with The Singing Machine Company, Inc., a subsidiary of Algorhythm Holdings, Inc., along with Stingray. Under the agreement, Singing Machine will launch a globally available in-car karaoke microphone, designed to fully integrate with the Stingray Karaoke app and BYD’s infotainment system in its vehicles. 

On October 25, BYDDY unveiled the first plug-in hybrid SUV for Paraguayan households, the BYD SONG PRO model. This launch is equipped with BYD’s Super Hybrid DM-i technology and should help further expand BYDDY’s new energy product lineup in the Paraguayan market.

During the fiscal third quarter, which ended September 30, BYDDY’s total operating revenue rose 18.9% year-over-year to RMB502.25 billion ($69.37 billion). Its other income grew 221% from the prior-year quarter to RMB9.05 billion ($1.25 billion). Also, its total profit amounted to RMB31.32 billion ($4.33 billion), up 20.2% from the prior-year period, and earnings per share came in at RMB8.68, up 18.1% year-over-year.

The consensus revenue estimate of $106.43 billion for the fiscal year (ending December 2024) represents a 27.5% increase year-over-year. The consensus EPS estimate of $3.78 for the same period indicates a 39.6% improvement year-over-year.

Over the past nine months, the stock has gained 41.7%, closing the last trading session at $66.66.

BYDDY’s POWR Ratings reflect its promising outlook. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

BYDDY has an A grade for Sentiment and a B for Growth and Quality. It is ranked #7 out of 50 stocks in the Auto & Vehicle Manufacturers industry. Click here to see the other BYDDY ratings for Value, Momentum, and Stability.

Stock #2: Isuzu Motors Limited (ISUZY)

Based in Tokyo, Japan, ISUZY is an automobile manufacturer that engages in the manufacturing and selling of commercial vehicles, light commercial vehicles, and diesel engines and components worldwide.  Its products include heavy-duty and medium-duty trucks, buses, light-duty trucks, passenger pickup vehicles, pickup trucks, SUVs, and marine and industrial engines.

On November 20, ISUZY announced the launch of the new D-MAX 1-ton pickup truck and MU-X 7-seater passenger vehicles in Thailand, equipped with a newly developed RZ4F 2.2L diesel engine and 8-speed automatic transmission. This launch will go on sale from November 28 onwards in Thailand.

On August 27, ISUZY announced a strategic partnership agreement with Applied Intuition, Inc., to jointly develop Level 4 autonomous commercial trucks for a span of five years. This partnership should help ISUZY gain advanced autonomous driving technology and provide a solid and reliable foundation for the company’s goals.

ISUZY’s net sales for the first half, which ended on September 30, 2024, stood at ¥1.54 trillion ($9.96 billion). Its gross profit grew marginally from the year-ago value to ¥334.17 billion ($2.17 billion). Moreover, the company’s profit attributable to the owners of the parent came in at ¥69.17 million ($448.67 million).

Analysts expect ISUZY’s revenue for the fourth quarter (ended March 2025) to increase marginally year-over-year to $5.43 billion. For the fiscal year ending March 2025, its revenue will likely grow 149% year-over-year to $20.98 billion.

Shares of ISUZY have surged 8.5% year-to-date to close the last trading session at $13.40.

It’s no surprise that ISUZY has an overall rating of B, equating to a Buy in our POWR Ratings system. It has an A grade for Value and a B for Stability and Quality. Out of 50 stocks in the same industry, ISUZY is ranked #4.

Beyond what is stated above, we’ve also rated ISUZY for Growth, Momentum, and Sentiment. Get all ISUZY ratings here.

Stock #1: Suzuki Motor Corporation (SZKMY)

Headquartered in Hamamatsu-shi, Japan, SZKMY engages in the manufacture and marketing of automobiles, motorcycles, and marine products. Its diverse offerings include mini-vehicles, standard-sized vehicles, outboard motors, and additional services such as solar power generation and logistics.

On November 11, SZKMY’s Indian subsidiary Maruti Suzuki India Limited, launched the All-New Dzire compact sedan in India with a progressive sleek design and plush interior with class-leading features. This launch emphasizes innovation, comfort, and efficiency. It will also be exported to other countries like the Middle East, Africa, Latin America, and the ASEAN regions.

In the same month, SZKMY unveiled the new DR-Z4S dual-purpose model and DR-Z4SM supermoto model, primarily available in North America and Europe. This new launch complies with emission, noise, and brake regulations and allows riders to enjoy a smooth ride.

For the six months that ended September 30, 2024, SZKMY’s revenue rose 11.7% year-over-year to ¥2.86 trillion ($25.52 billion). The company’s gross profit and operating profit increased 20.9% and 40.7% from a year-ago period to ¥797.32 billion ($5.17 billion) and ¥334.95 billion ($2.17 billion), respectively. Its profit and earnings per share came in at ¥270.78 billion ($1.76 billion) and ¥112.71, up 34.7% and 44.6% year-over-year, respectively.

Street expects SZKMY revenue for the fiscal 2025 third quarter (ending December 2024) to increase 7.1% year-over-year to $9.27 billion.

SZKMY shares have surged 8.5% over the past month and 6.1% over the past year to close the last trading session at $42.41.

SZKMY’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.

It also has a B grade for Growth, Value, Stability, and Quality. Within the Auto & Vehicle Manufacturers industry, it is ranked first. Click here to see SZKMY’s ratings for Momentum and Sentiment.

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BYDDY shares were trading at $65.77 per share on Tuesday afternoon, down $0.89 (-1.34%). Year-to-date, BYDDY has gained 20.51%, versus a 27.35% rise in the benchmark S&P 500 index during the same period.

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