Electric Vehicle Stocks : Let’s spend a few words on why you should and shouldn’t bet on electric vehicles in India, and then I will list my favorite stocks that should be set to gain from this sector.
Don’t forget that it’s not just electric vehicle manufacturing companies that are set to gain, but also manufacturers of batteries, charging stations, and miners of raw material etc.
- The Indian Automobile Industry is currently the 5th largest in the world.
- Electric vehicles are expected to gain popularity rapidly as people become more and more conscious about clean energy.
- By 2030, India has set a target that 30% of all vehicles sold should be electric
- The government has been incentivising customers to purchase electric vehicles by reducing GST on them, and also giving a deduction in income tax
The idea of entering an emerging sector early is very intriguing.
But we cannot forget that ultimately all such ideas also have an element of risk, as the market is yet to be proven. I see the following potential problems that can elongate the return period:
- Inadequate electric supply in many parts of India
- Limited driving range on a single charge
- High Price of consumer electric vehicles
- Inadequate charging infrastructure as of today
Also Read How to Invest Wisely for great Future.
Electric Vehicle Stocks India
There are many stocks in India for electric vehicles. However, the holding period is at least 10 years to enjoy the benefits of compounding.
Original Equipment manufacturers:
Tata Motors is at the forefront of the EV cars revolution in India. In 2021, it has a market share of 68% in electric cars. Its models, Tiago, Nexon are already in the market. EV versions of Harrier, Safari also released in 2021. It has a huge technology advantage because of the Jaguar & Land Rower. Electric Vehicle Stocks has great weightage in Tata Motors.
Mahindra & Mahindra:
Mahendra is the first company in India to release an EV into the market of Electric Vehicle Stocks. Its e-Verito wasn’t received well in the market. However, it is planning to expand its EV footprint through the Commercial Vehicle segment. It has already inked a deal with Amazon to provide three-wheeler EVs for its logistics.
Maruti Suzuki has a market share of 50% in the Indian car market. However, it’s late in foraying to the EV market. It has announced its entry into this space e-Wagon R in the second half of 2021. Since it is a highly profitable company, it becomes easier for it to invest in EVs and capture market share.
Hero is the largest two-wheeler manufacturer in the country. It has a majority stake in Ather Energy, which is at the forefront of India’s two-wheeler EV revolution. Its 450x is already in the market and is garnering excellent reviews.
Ashok Leyland is in the business of EV bus manufacturing. It has already made contracts in Europe to deliver e-buses. The CV maker has been operating a fleet of electric buses as a pilot program in Ahmedabad and Chennai, and in London through its UK-based subsidiary Optare Plc.
The company, which is working to launch electric buses with swappable batteries and fast charging systems in India, has been investing in the research and development (R&D) of EVs over years. Ashok Leyland’s total R&D expenditure in FY20 stood at ₹673 crore, which was almost 4% of its annual turnover, up from ₹658 crores spent in FY19. Its a great Electric Vehicle Stocks.
Top Electric Vehicle Stocks in India – Battery Technology:
Originally, its a manufacturer of lead-acid batteries used in our petrol & diesel cars. Exide Industries, India’s largest manufacturer of batteries, and Leclanché announce the launch of a new joint venture to build lithium-ion batteries and energy storage solutions to power the growth of India’s electric vehicle market.
Also, Exide Industries and Sydney-based Ecoult are setting up a new lithium-ion battery manufacturing plant in East India named Ultra Battery.
India’s second-biggest traditional battery maker Amara Raja is looking to build a Lithium-ion assembly plant soon. The firm is already working in collaboration with different state governments to promote the use of electric vehicles.
They have collaborated with the Delhi government to set up charging stations. Amara Raja launched EV charging stations and battery swapping stations in collaboration with Tirupati Municipal Corporation along with a fleet of electric auto-rickshaws as part of the central government’s Smart Cities program.
BHEL & ISRO:
Bharat Heavy Electricals Ltd reached an MOU with the Indian Space and Research Organization (ISRO). BHEL is going to invest Rs 100 crore.
Also Read Best way to Start Investing in 2021
Top Electric Vehicle Stocks in India – Auto Ancillaries:
Motherson Sumi Systems is one of the largest manufacturers of wiring harnesses for commercial vehicles and rearview mirrors for passenger cars in the world. It has been ranked No. 1 auto ancillary in India for seven consecutive years by Fortune India 500.
The group’s customers are a who’s who of the carmaking elite, including General Motors Co., Jaguar Land Rover, BMW AG, Daimler AG and Volkswagen AG. As industry moves towards electric, it means we need more wiring and hence mothersumi becomes a key player.
Polycab is India’s leading wires & cables manufacturer. It’s mainly in copper wiring. As EVs rise, demand for internal wiring and also wiring at charging stations rises. This will be beneficial to copper wiring manufacturers like Polycab.
Top EV Stocks in India – Charging Network:
Tata Power is planning to increase its network of electric vehicle charging stations to 700 by next year. The company has already installed 100 fast charging stations in various cities, including Delhi, Mumbai, Bengaluru, Pune and Hyderabad, which it plans to take to 300 by March 2020.
The company is not just focusing on public spaces but will also provide home EV charging stations.The company is already in talks with metro rail authorities and municipal corporations for setting up EV charging stations. Besides, it will set up charging stations at Tata Group owned outlets such as Chroma, WestSide,
Titan watch showroom, and Indian Hotels, among others. Tata power has also signed MoUs for setting up commercial EV charging stations at HPCL,IOCL and IGL retail outlets.
The government Oil Marketing companies, have already inked deals with various firms to provide charging stations at their petrol pumps. HPCL has already established charging infrastructure at 50 pumps. BPCL and IIT-Madras have entered into a partnership to launch efficient charging infrastructure for electric vehicles. IOCL partnered with tata power & ola electric to launch EV charging stations.
Why Electric and What is the plan ahead?
One of the major reasons why countries are forced into adopting an electric alternative is climate change. India according to Environmental Pollution Index (EPI) 2018 is ranked 178 out of 180 in terms of air quality.
One of the strategies adopted to combat this has been the push for electric vehicles[EV]. This will not only improve the environment but also India’s overall economic health. India currently imports crude oil and which sets us back in a deficit of approx. $60 billion.
The aim set by the government has been 100% electrification by 2030. This is a humungous target considering the early stages of adoption that we currently are in. The electric vehicle adoption rate in India is less than 1% according to a McKinsey&Company report.
According to Bloomberg, in the six years leading up to October 2019, India has barely sold more than 8000 electric cars. If compared to countries like China these sales figured are achieved in less than 2 days.
Importance of EV Stocks in India 2021
When it comes to travel new technologies just keep popping up around the world. These alternative technologies in transport are mainly based around electronic vehicles with many companies jumping on the bandwagon to get some traction before the industry gets a radical shift away from traditional fossil fuels.
This change can also be seen as catchup that existing companies are trying to play in the electric vehicle (EV) segment with companies like Tesla and the bars set by them before its too late. Today, we take a look at the electric vehicle segment in India and the top Electric Vehicle Stocks in India for investors to watch out for in this segment.
In this article, we discussed the list of the top EV stocks in India along with leading Electric Vehicle Manufacturers, their current work in EV segment, and future prospects. The Indian government had set up the aim of replacing all internal combustion engines with EV’s by 2030.
A report from Mckinsey and Company from 2017 indicated that 40% of electrification was a more realistic picture of mobility in 2030. This report, however, was prior to the Pandemic ( Electric Vehicle Stocks ). This, in turn, will further set back electrification in the industry for years to come.
In addition, the steps taken in order to enable acceptance of EV will not suit their main purpose if alternative means of electricity production are not implemented. Currently, up to 60% of the electricity is produced from coal. Although the government has set major aims to bolster the growth of EVs a lot more has to be done in order to ensure they are implemented.