Lately, the story surrounding the auto industry's top stocks has focused on which companies can perfect the electric car. But that may be the wrong question for investors. Discussing electric car companies side-by-side with traditional automakers is like comparing a fine dining restaurant to a grocery store. Customers can get their groceries at either location, but grocery stores are a more sustainable option for the majority of people.
When picking auto stocks, the answer lies in the companies that offer the most value to most consumers. The answer may not be as exciting as the electric vehicle industry, but it makes for a more affordable investment.
For an auto stock to be truly classified as a blue chip, its market performance must be as reliable as its product. Here are three top auto stocks rooted in accessibility and customer satisfaction to help round out your portfolio.
Honda Motor Co., Ltd. (HMC)
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Through diversification and commitment to quality, Honda motor (New York Stock Exchange:HMC) has become one of the most respected car brands in the world. This reputation usually comes with lower prices than competing brands offering similar products. Unlike more classic luxury brands, our commitment to durability means our vehicles can last an average of over 200,000 miles after manufacture.
But these cars aren't just long-lasting; they're also relatively cheap to maintain. The reason for this is the simplicity of Honda's design and the commonality of parts that allows for mass production of replacement parts. By keeping production costs low, Honda is able to offer more features while pricing more reasonably than its competitors.
Its global consumer car market share of 5%, combined with strong sales of two-wheelers, makes Honda stock a strong contender. Thanks to this approach, Honda enjoys stable financial performance and a “Moderate Buy” rating.
BMWYY
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Value can be subjective, but pure money is BMW (OTCMKTS:BMWYY) focuses on the driver experience and defines its approach to value. BMWs are not considered affordable to own or maintain, but they do hold a reputation for providing superior vehicle performance. BMW understands this and caters to the type of driver who values driving enjoyment over cost-effectiveness.
A focus on the luxury market has seen BMW grow from a high-quality German import brand to a pure luxury brand that continually innovates. Customers and investors alike can observe this in the way the company has shaped itself as a brand. Gone are the days of high-speed racing cars, and BMW now represents the height of luxury.
Additionally, BMW has pledged that by 2030, at least half of all newly manufactured cars will be electric. BMW remains a “moderate buy” and one of the top stocks among car companies due to its focus on a constantly evolving driving experience.
Toyota Motor Corporation (TM)
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Many of the world's best-selling car models are toyota motors (New York Stock Exchange:TM), the company and its stock price can only go up. While Toyota is the world leader in passenger car sales, it is constantly improving its designs and products. This dedication to growth has made Toyota unmatched in terms of quality and overall recognition.
Furthermore, they recently announced the release of a new 2025 Camry model. This year's Camry improvements highlight Toyota's focus on hybrid electric vehicles and pave the way for a bright future for the company's stock. That's because the Toyota Hybrid System 5 is practical, yet has all the best performance features of an electric motor.
Toyota continues to be one of the top stocks in the auto industry due to its focus on functionality and affordable pricing. Whether a customer is looking for a new car or a new car, the signage shows Toyota is a strong choice.
On the date of publication, Viktor Zarev did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
