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Electric vehicles or EVs, are passenger cars powered by an electric motor that draws energy from a rechargeable battery, which can be charged from an external power source. Over the past few years, EVs have gained tremendous popularity for being cleaner, quieter and more efficient than traditional petrol or diesel vehicles.
With rapid advancements in battery technology, falling costs and an expanding charging infrastructure, EV sales are accelerating across the globe. India, too is witnessing this transformation, driven by environmental concerns, rising fuel prices and strong government support.
The growing shift towards sustainable mobility has fueled interest in best electric vehicle stocks in India, as many recognising their potential for long term growth. This demand has led to rising searches for good electric vehicle stocks and even low price EV stocks in India that could offer attractive returns.
In this blog, we look at some of the best electric vehicle stocks India has to offer, based on market performance, that not only present strong investment opportunities but also align with the country’s broader goal of fostering a greener future.
EV Industry in India – A Brief Overview
- 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.
What are EV Stocks?
Electric vehicle (EV) stocks are shares of companies involved in designing, producing and distributing electric vehicles, batteries, charging stations and related components. As the world shifts toward sustainable mobility, demand for EV stocks is rising, making them an attractive choice for investors interested in clean technology.
In India, both established automakers and innovative startups are driving this growth. Whether you’re looking for best electric vehicle (EV) stocks in India, exploring good electric vehicle stocks or considering low price EV stocks in India, there are options for different investment goals. The best electric vehicle stocks in India are poised to benefit from the country’s push for cleaner, greener transportation.
Why Invest in Electric Vehicle Stocks India?
India offers a promising opportunity for investors looking at the best electric vehicle stocks in India, due to several strong growth drivers like:
Government support: Indian government is actively promoting electric mobility through subsidies, tax incentives and infrastructure projects. This supportive policy framework is creating opportunities for EV companies in India to expand.
Growing market: A rising middle class, increasing fuel prices, and heightened environmental awareness are driving demand for electric vehicles. This makes the top EV stocks in India a compelling choice for long term investors.
Cost competitiveness: With a strong manufacturing base and affordable labor, domestic EV companies can compete globally while keeping production costs low.
Technological advancements: From better battery performance to improving charging infrastructure and innovative vehicle design, technology is making good electric vehicle stocks even more attractive.
Diversification benefits: EV sector is still in its early stages and less correlated with traditional auto stocks, making it an appealing option for investors seeking diversification, including those exploring low price EV stocks in India for affordable entry.
Best EV Stocks in India as per the Return
Note: The data provided is as of 16th April 2024.
- Ola Electric Mobility
Ola Electric Mobility is a leading Indian EV maker founded in 2017 and headquartered in Bengaluru. It designs and manufactures electric two-wheelers and core components like, battery packs, motors and frames, through vertically integrated operations. The company invests in in-house R&D and is building Ola Gigafactory.
- Supertech EV
Incorporated in 2022, Supertech EV makes and sells electric two-wheeler scooters and e-rickshaws. The company produces high-speed and low-speed models, along with e-rickshaw components. On 1 April 2023, it acquired Supertech Inc., expanding its capabilities in e-rickshaw and parts manufacturing. Today, SEVL focuses on designing, developing, manufacturing, and distributing quality electric scooters and e-rickshaws across India.
- Olectra Greentech
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
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
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
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
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
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
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
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.
Factors to Consider Before Investing in EV Stocks in India
EV market in India is growing fast, fueled by rising fuel costs, environmental concerns and government incentives. This has boosted interest in the best electric vehicle stocks in India and promising low price EV stocks in India. However, not all EV companies are equal, to find good electric vehicle stocks, investors must look beyond the hype and focus on key fundamentals that drive sustainable growth.
Here are the important factors to consider:
1. Healthy Financials
A company’s financial health is the foundation of its sustainability. In the competitive EV segment, you should look for businesses with strong revenue, consistent profit margins and a manageable debt level.
2. Innovation and R&D Commitment
Technology is the core of the EV industry, before investing assess the company’s dedication to research and development. Innovation in battery efficiency, charging speed, vehicle range and safety features can set a brand apart from its competitors.
3. Competitive Edge in the Market
As more automakers entering EV manufacturing, the competitive landscape is heating up. Investors should evaluate each company’s unique selling propositions (USPs), like advanced battery technology, stronger after sales service or affordable pricing.
4. Government Policies and Incentives
Government support plays a major role in shaping the EV industry in India. Policies such as tax breaks, FAME-II subsidies and incentives for EV infrastructure development can directly impact company profitability.
5. EV Infrastructure Readiness
Success of EV adoption in India depends on a strong charging and battery-swapping network. If an EV manufacturer is investing in its own infrastructure or collaborating with charging service providers, it indicates strong future potential.
6. Global Partnerships and Collaborations
International partnerships for manufacturing, supply chains or technology sharing can give EV companies a competitive advantage. Collaborations with global brands often bring in advanced expertise, cost efficiency and faster production timelines.
7. Brand Reputation and Consumer Trust
In a relatively new market like EVs, brand perception matters. Companies that have built a reputation for reliability, transparency and quality tend to attract more customers and maintain long term loyalty.
8. Supply Chain Stability
A strong and reliable supply chain helps EV companies produce and deliver vehicles on time. Since they depend on parts like lithium-ion batteries, having multiple suppliers reduces the risk of delays.
9. Technological Adaptability
EV sector evolves rapidly, with innovations in autonomous driving, AI-powered diagnostics and connected vehicle technology. Companies that quickly adapt to emerging trends will be better positioned to lead the market and deliver stronger returns.
Should You Invest in Electric Vehicle Stocks?
Before buying EV stocks in India, it’s important to understand the risks. As more players enter the EV market, competition intensifies, which can lead to pricing pressure and thinner profit margins. This directly affects company earnings and, their stock performance.
Other factors like regulatory changes, evolving product profiles and shifts in consumer preferences can also impact demand for EVs.
EV sector can see sharp price swings due to supply chain disruptions, geopolitical tensions, and macroeconomic trends. Whether you’re exploring low price EV stocks in India or established market leaders, these risks remain.
Final Words
India’s EV industry offers exciting opportunities, from good electric vehicle stocks with steady growth potential to emerging players with innovative technologies. The country’s focus on sustainable mobility is expected to drive demand further. But just like with any investment, thorough research is essential like, analyse market trends, company fundamentals and competitive positioning before buying best electric vehicle stocks India.
FAQs on Best EV Stocks in India
What are the best EV stocks to buy in India?
Some of the best EV stocks in India include Tata Motors, Mahindra & Mahindra, and Ola Electric, Hyundai Motor India, Bajaj Auto.
Is it a good time to invest in EV stocks?
It can be, provided you research thoroughly. EV stocks in india showing long-term promise but market volatility and competition require careful selection based on fundamentals and industry trends.
Who is leading EV in India?
Tata Motors currently leads India’s EV market with a significant share, followed by Mahindra and other emerging players focusing on affordable electric vehicles and expanding charging infrastructure.
Is it good to invest in EV stocks now?
Yes, if you have a long-term perspective. EV sector in India has growth potential, but investors should assess risks, competition, and evolving technology before committing capital.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
