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In our last blog, we talked about the top Electric Vehicle Battery Manufacturers in India. We covered a range of topics including the Rise of Electric Vehicles in India, the country’s important role in the Electric Vehicle Market, and various Government Initiatives and Schemes for Electric Vehicles. We also highlighted some of the best Electric Vehicle Battery Manufacturer stocks. If you missed that blog, you can find it in our blog section.
In this blog, we’re going a step further. We’ll explore the top Four Wheelers and Two Wheelers EV Stocks in India. But first, lets understand a little about EV sector.
What are EV Stocks?
Electric vehicle stocks represent shares of companies actively involved in the booming electric vehicle market. These companies are the driving force behind the design, production and distribution of electric vehicles, cutting edge battery technology, charging infrastructure and all the essential components that make electric transportation possible.
With the global shift towards sustainable mobility gaining momentum, the demand for EV stocks is surging, leading to an expansion in the availability of related resources. Investors who are passionate about environmental sustainability and advancements in transportation often see EV stocks as an exciting and promising investment opportunity.
This market includes established automakers, innovative startups and specialized enterprises dedicated to developing electric vehicle components all contributing to the exciting landscape of clean and efficient transportation solutions.
Why Invest in Electric Vehicle Stocks India?
Thinking about investing in electric vehicle stocks? It’s an exciting opportunity as the automotive industry undergoes a big transformation. With everyone talking about going green and reducing carbon emissions, EV stocks are becoming super important for the future of transportation. Governments around the world are even passing laws and giving out incentives to encourage people to switch to electric cars, which is making the EV market grow really fast.
Investing in EV stocks in India means you’re getting in on a sector that’s set to boom. As technology gets better, batteries improve and infrastructure gets upgraded, there’s a lot of potential for growth. Plus, more and more people are realizing the benefits of going green, which is driving up demand for EVs. So, if you’re looking to invest in something that’s not only financially rewarding but also making a positive impact on the environment, EV stocks in India could be a great fit for you.
Overview of EV Industry 2024
India is a major player in the global automobile sector, ranking 3rd in sales worldwide. The country is aiming to team up with both carmakers and policymakers to promote more eco friendly options. Automotive industry plays a significant role in India’s economy, contributing approximately 7.1% to its GDP and generating numerous employment opportunities.
Electric vehicle market in India is expected to be worth a whopping USD 34.80 billion by 2024 and could grow even more hitting around USD 110.74 billion by 2029. India has some ambitious goals for EV sales by 2030 aiming for 30% of private cars, 70% of commercial vehicles, 40% of buses and a whopping 80% of two wheelers and three wheelers to be electric. Plus, they’re pushing for all EVs to be made locally through the Make in India initiative.
In the Union Budget of 2023-24, the government set aside about ₹35,000 crore for key investments to help with the shift towards cleaner energy and achieve net zero targets by 2070. On top of that, they’ve rolled out initiatives like the Production Linked Incentive Scheme (PLI) and the Faster Adoption of Manufacturing of Electric Vehicles Scheme – II (FAME – II) to give a boost to the electric vehicle industry.
Latest Update As of 1st April 2024
Starting from Monday 1 April 2024, a new scheme worth ₹500 crore will be in action until the end of July 2024 aiming to boost electric mobility in India. This scheme is called the Electric Mobility Promotion Scheme 2024 (EMPS 2024) and was introduced by the Ministry of Heavy Industries to speed up the adoption of electric vehicles across the country.
Under EMPS 2024, financial support will be provided for the purchase of electric two wheelers and three wheelers. For instance, up to ₹10,000 support will be given for each two wheeler, with the goal of assisting around 3.33 lakh two wheelers. Similarly, small three wheelers like e-rickshaws and e-carts will get up to ₹25,000 support, benefiting over 41,000 vehicles. Larger three wheelers will receive up to ₹50,000 in financial support.
This scheme running from 1 April to 31 July 2024 aims to promote the adoption of electric vehicles and boost the development of the EV manufacturing ecosystem in India. It targets to support 3,72,215 electric vehicles. The scheme prioritizes advanced technologies offering incentives only to vehicles equipped with advanced batteries.
As part of the government’s Atmanirbhar Bharat initiative, EMPS 2024 seeks to build a robust and competitive electric vehicle manufacturing industry in India. It also aims to create more job opportunities along the entire electric vehicle supply chain.
Top Four Wheelers and Two wheelers Electric Vehicle Stocks 2024
Note: The data provided is as of 16th April 2024.
- Olectra Greentech Ltd
In India, there’s a noteworthy EV company deeply involved in crafting electric buses. Olectra Greentech K9 model has a remarkable braking system, trimming energy consumption by 30% and facilitating quicker charging. The company stands out as one of the few Indian EV related stocks producing Tarmac electric buses tailored for Indian airports.
- JBM Auto Ltd
JBM is a major player in the electric bus manufacturing sector. They’re deeply engaged in making electric buses and the parts needed for them which helps create a more environmentally friendly public transportation system in India. JBM Auto also plays a role in setting up charging stations for electric vehicles, particularly for cab companies in big cities across India.
- Tata Motors Ltd
Tata Motors is leading the charge in India’s electric vehicle market with the launch of models like Tata Nexon EV Prime, Tata Nexon EV Max and Tata Tigor EV. Their strong commitment to expanding EV infrastructure and product range highlights their role in electrifying Indian roads. They’re expecting sales to soar to 65,000-70,000 units in 2024, with a growth rate of 60% to 70%. Not stopping there, Tata aims to introduce EVs with a longer range of 600 km on a single charge pushing the boundaries of electric mobility.
With a global presence spanning Asia, Europe, Russia, Middle East, Central and South America, North America, Oceania and Africa, Tata Motors is making waves in the international automotive market.
- Bajaj Auto Ltd
Bajaj Auto Ltd., a leading Indian automobile manufacturer known for motorcycles, scooters, and three-wheelers, has embarked on an electric vehicle journey with the Pulsar in 2001 and now introduces the iconic Chetak in 2021. In the fourth quarter of the current financial year, Bajaj is set to expand its electric vehicle business, focusing on electric three-wheelers and two-wheelers. Last year, they launched electric three-wheelers in select cities, now expanding to 23 cities with plans for 70-80 cities in the near future. With a new manufacturing facility to be operational by the end of this quarter, Bajaj aims to unlock capacities and grow networks, investing close to ₹400 crore. Additionally, they are ramping up production of the Chetak electric scooter introduced in FY21.
- Hero MotoCorp Ltd
Hero MotoCorp Ltd, known as the world’s biggest maker of motorcycles and scooters, aims to introduce three electric two wheelers for the general public in the financial year 2025 to enhance its range of products. For India’s electric vehicle sector, Ather Energy and Hero MotoCorp have joined hands to build the largest fast charging network in the country. This network will consist of more than 1,900 fast charging stations across 100 cities in India, making it the biggest of its kind globally for electric two wheelers.
- Mahindra and Mahindra Ltd
Mahindra & Mahindra, a top automotive manufacturer in India, is deeply involved in the EV sector with models like the e-Verito, e2o, and eKUV100. It’s also investing heavily in future EV technologies and infrastructure. The company is making a big shift in production strategy, aiming to have 30% of its overall auto manufacturing focused on EVs by 2027.
- Maruti Suzuki India Ltd
Based in New Delhi, Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, is India’s largest passenger car maker. They focus on producing and selling cars in India, offering 16 models with over 150 variants like Alto, Baleno, Swift, etc. Besides cars, they provide services such as finance, insurance, and accessories.
Maruti Suzuki operates manufacturing plants in Gurugram and Manesar, serving customers in Europe, Asia, Oceania, and Latin America. They’re gearing up to enter the electric vehicle market by 2026-2027 with a new electric hatchback, competing with Tata Motors’ Tiago EV. This EV, based on Suzuki’s eWX concept, aims to make electric vehicles more affordable for Indian consumers. Maruti Suzuki plans to invest over ₹10,000 crore to localize EV production and targets sales of half a million EVs annually by FY 2031.
- Ashok Leyland Ltd
Ashok Leyland Ltd, a major player in commercial vehicles, is excited about its new electric light commercial vehicles (e-LCVs), called the IeV series. These vehicles received a whopping 10,000 bookings shortly after their unveiling in September 2023, with plans for launch in the fourth quarter of the current fiscal year.
Developed by Ashok Leyland’s EV division, Switch Mobility, the IeV 3 and IeV 4 models are designed for environmentally friendly last-mile transportation. They’re nicknamed ‘twin brothers’ and feature a 330 V high voltage EV system, offering ample cargo space. These vehicles will be made at the Hosur facility with a project cost of around ₹100 crore.
Moreover, Ashok Leyland is investing ₹1,200 crore in Switch Mobility to support capital expenditure, research and development, and operations in the UK and India. This move aims to bolster investor confidence in their electric vehicle offerings.
Final Words
As India’s electric vehicle (EV) sector grows, so do investment chances. Yet, it’s a fast-paced world, with tech changes and rules shifting constantly. To make the best investment decision, research is key. Seek advice, analyze trends, and then invest wisely. With India prioritizing clean transport and EV tech booming, it’s a promising market. But careful planning and expert guidance ensure you ride the wave successfully.
