Halal Automotive Stocks
Automobile manufacturers, electric vehicle companies, and transportation firms. The automotive sector is generally permissible in Islamic finance. Electric vehicle companies are particularly popular among halal investors due to their alignment with environmental stewardship (khalifah).
3
Compliant
12
Non-Compliant
0
Needs Review
Automotive Shariah Compliance Results
15 stocks screened against AAOIFI 30/30/5 standards.
| Symbol | Company | Status |
|---|---|---|
| TSLA | Tesla, Inc. | Compliant |
| TM | Toyota Motor Corporation | Non-Compliant |
| F | Ford Motor Company | Non-Compliant |
| GM | General Motors Company | Non-Compliant |
| RIVN | Rivian Automotive, Inc. | Non-Compliant |
| LCID | Lucid Group, Inc. | Non-Compliant |
| NIO | NIO Inc. | Non-Compliant |
| LI | Li Auto Inc. | Non-Compliant |
| XPEV | XPeng Inc. | Non-Compliant |
| RACE | Ferrari N.V. | Compliant |
| STLA | Stellantis N.V. | Non-Compliant |
| HMC | Honda Motor Co., Ltd. | Non-Compliant |
| APTV | Aptiv PLC | Non-Compliant |
| BWA | BorgWarner Inc. | Non-Compliant |
| ALV | Autoliv, Inc. | Compliant |
Frequently Asked Questions
Which Automotive stocks are halal?
Based on AAOIFI 30/30/5 screening, 3 out of 15 screened Automotive stocks are currently Shariah compliant. Compliance status is updated regularly as new financial data becomes available. Use the table above to see the full breakdown of compliant, non-compliant, and needs-review stocks.
Is the Automotive sector halal to invest in?
The Automotive & Transportation sector is not inherently halal or haram as a whole. Each company must be individually screened against Shariah compliance standards. Some Automotive companies pass all AAOIFI criteria while others fail due to excessive debt, cash holdings, or non-permissible income. Always screen individual stocks before investing.
What is the AAOIFI 30/30/5 screening standard?
The AAOIFI 30/30/5 standard is the most widely adopted Shariah screening methodology. It requires: (1) the company does not primarily operate in haram industries, (2) interest-bearing debt is below 30% of market capitalization, (3) cash and interest-bearing securities are below 30% of market cap, and (4) non-permissible income is below 5% of total revenue. A stock must pass all four criteria to be considered Shariah compliant.
Can a Automotive stock's halal status change?
Yes. Shariah compliance status can change every quarter when companies release new financial data. Changes in debt levels, cash holdings, or revenue composition can push a stock above or below the AAOIFI thresholds. Halalytic uses the latest available financial data so you always see the current compliance status. We recommend checking compliance regularly, especially after earnings reports.
Do I need to pay zakat on Automotive stocks?
Yes. If you hold stocks for investment (not just for day trading), you must pay zakat of 2.5% on the market value of your holdings once they exceed the nisab threshold and have been held for one full lunar year (hawl). Use the Halalytic Zakat Calculator to determine your exact zakat obligation on stock holdings.
Explore Other Sectors
Check Shariah compliance for stocks in other industry sectors.
Islamic Finance Tools
Good to know: Compliance status can change as new company data becomes available. For important decisions, we recommend checking the current data and confirming the result with a qualified Shariah adviser.
Screen Any Stock for Free
Check the Shariah compliance of any publicly traded company using the Halalytic stock screener.
Open Stock Screener