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In our previous blogs, we’ve discussed the top electric vehicle stocks for four wheelers and two wheelers, along with the best electric vehicle battery manufacturing companies. If you haven’t had a chance to read them yet, you can find them in our blog section. We’ve highlighted companies actively contributing to the EV sector and provided insights into some stock names. In this blog, we’ll cover the top electric vehicle component manufacturers companies.
But first, let’s understand a little about the EV sector and current development in this growing sector.
What are EV Stocks?
Electric vehicle stocks are shares of companies involved in making electric vehicles and everything that goes with them, like batteries and charging stations, etc. As more people want eco friendly transportation the demand for these stocks is going up. Investors who care about the environment and new ways of getting around see them as a good investment.
These stocks cover a wide range of companies, from big car makers to new startups and those making parts for electric vehicles. Electric vehicle stocks can be grouped into categories like electric vehicle producers, battery makers, parts suppliers and companies that make software for electric vehicles and charging stations.
Vehicle Components and EV Software
Companies in this sector manufacture crucial components required for vehicle assembly, including engines and electronics. When it comes to electric vehicle stocks, companies focused on EV software play a key role. They create software for managing batteries making vehicles more energy efficient and improving connectivity.
Companies like Bosch and Delphi, known for making components, along with software focused firms like NVIDIA and Aptiv, play a critical role in the industry. They drive innovation in both regular and electric vehicles by creating new hardware and integrating advanced software.
Why Invest in EV Stocks?
Interested in investing in electric vehicle (EV) stocks? It’s a great opportunity as the auto industry shifts towards sustainability. Governments worldwide are encouraging the switch to electric cars, driving fast growth in the EV market.
In India, EV stocks offer huge potential for growth as technology improves and infrastructure expands. Plus, more people are embracing the environmental benefits of EVs, boosting demand. The Indian government aims for 30% EV penetration by 2030.
So, if you want to invest in something financially rewarding and environmentally friendly, Indian EV stocks could be perfect for you.
EV Industry 2024 Overview
India ranks 3rd globally in automobile sales and aims to promote eco friendly options by collaborating with carmakers and policymakers. The automotive sector contributes about 7.1% to India’s GDP and offers job opportunities.
By 2024, the Indian electric vehicle market is forecasted to reach $34.80 billion with potential growth of $110.74 billion by 2029. India targets ambitious EV sales goals by 2030. 30% of private cars, 70% of commercial vehicles, 40% of buses and 80% of 2 wheelers and 3 wheelers to be electric with a focus on local manufacturing through the Make in India initiative.
In the 2023-24 Union Budget, the government allocated approximately ₹35,000 crore for key investments to support the transition to cleaner energy and achieve net zero targets by 2070. Initiatives like the Production Linked Incentive Scheme (PLI) and Faster Adoption of Manufacturing of Electric Vehicles Scheme – II (FAME – II) aim to boost the electric vehicle industry.
Latest Update – 1st April 2024
Starting from 1 April 2024, the Electric Mobility Promotion Scheme 2024 (EMPS 2024) has been active, with a budget of ₹500 crore, until July 31, 2024. Introduced by the Ministry of Heavy Industries, EMPS 2024 aims to accelerate electric vehicle adoption in India.
Under EMPS 2024, financial support is provided for electric two-wheelers and three-wheelers. Each two-wheeler receives up to ₹10,000 support, benefiting around 3.33 lakh vehicles. Small three-wheelers like e-rickshaws and e-carts receive up to ₹25,000 support, benefiting over 41,000 vehicles. Larger three-wheelers receive up to ₹50,000 in financial support.
As of April 16, 2024, this scheme has been running for over two weeks. It aims to support 3,72,215 electric vehicles and promote advanced battery technologies. As part of the Atmanirbhar Bharat initiative, EMPS 2024 aims to foster a competitive electric vehicle manufacturing industry in India and create job opportunities along the supply chain.
Top Electric Vehicle Component Manufacturing Companies
Note: The data provided is as of 18th April 2024.
- Servotech Power Systems
Servotech Power Systems specializes in solar products. It is also venturing into the electric vehicle market by setting up a plant in Uttar Pradesh. Its goal is to produce 10,000 EV DC chargers every year. To support this move, Servotech Power is investing ₹3 billion and issuing ₹750.6 million in warrants for manufacturing and research purposes.
Servotech is also innovating in the EV charger technology field, with two patents filed to improve fast charging capabilities. They plan to collaborate with universities and IITs for more innovative ideas. Additionally, they aim to establish 5,000 charging stations through their subsidiary, Servotech EV Infra, within 2-3 years. They’re leveraging their strong presence among oil marketing companies (OMCs) and original equipment manufacturers (OEMs) and looking to expand their network further.
- Ecoplast
Ecoplast Ltd is a leading supplier of polyethylene and co-polymer films for packaging and surface protection. They’ve diversified into manufacturing plastic components for electric vehicles, like battery enclosures and body parts. Their focus on sustainability and innovation makes them a trusted partner for EV manufacturers in India, attracting investors looking for promising EV stocks.
- Pricol
Pricol Limited manufactures instrument clusters and other auto parts for car manufacturers and aftermarket sales. Established in 1974 and headquartered in Coimbatore, Tamil Nadu, they specialize in products like driver information systems, sensors, pumps, telematics, and wiping systems.
Their products serve leading automotive companies in India and over 45 countries worldwide, with a range of over 2000 variants. Pricol generates more than 80% of its revenue from original equipment manufacturers (OEMs), with a large share coming from two wheeler OEMs, where they hold a market share of over 65%.
At the Auto Expo 2023, Pricol introduced new electric vehicle ready products such as Heads Up Display (HUD), Disc Brake, E-cockpit, Round TFT Instrument Cluster, TFT Smart Clusters and Electric Coolant Pump.
- Fiem Industries
Fiem Industries manufactures and supplies auto components such as automotive lighting, including headlamps, tail lamps, blinker lamps, and fog lamps, as well as rear-view mirrors, sheet metal parts, and plastic molded parts. Additionally, Fiem has expanded its product range into LED luminaires for indoor and outdoor use and integrated passenger information systems featuring LED displays.
- Motherson Sumi Wiring India Ltd
MSUMI leads India’s wiring assembly sector with a significant 40% share, mainly from the domestic market, particularly the Indian Passenger Vehicle industry. As the automotive sector moves towards electrification, MSUMI’s proficiency in economical wiring solutions positions it well to capitalize on the rising demand for wiring per vehicle, particularly with electric vehicles (EVs) requiring double the wiring of traditional internal combustion engine (ICE) vehicles.
To address this growing need, MSUMI has introduced a dedicated line in Chennai for high-voltage wiring systems tailored for EVs and hybrids across different vehicle categories.
- Vedanta
Vedanta Aluminium, a leading producer in India, supports the EV sector by providing eco-friendly aluminium products. These products, like low carbon ‘green’ aluminium, help make EVs more efficient and eco-friendly. With certifications from BIS and EPD, Vedanta Aluminum is known for its quality and sustainability efforts, contributing to a greener future for the EV industry.
- Rajratan Global Wire
Established in 1989, Rajratan Global Wire Ltd specializes in manufacturing bead wire and high carbon steel wire. Their bead wire is used in various types of tires including those for automobiles, earth moving equipment and aircraft. It ensures tire safety, strength and durability by preventing vibrations during driving. Additionally, their high carbon steel wire, also known as black wire finds applications in automobile, construction and engineering industries.
Final Words
We’ve published three articles on the best electric vehicle stocks in India including today’s blog on top electric vehicle component manufacturers. Investors interested in the EV industry can gain insights from these articles to understand the market and related stocks better. EV stocks appeal to investors interested in green technology and long term growth but it’s crucial to consider the associated risks. Before investing, evaluate your risk tolerance and investment objectives carefully to ensure they align with your financial goals.
