Top Electric Vehicle Companies in India: Why Should You Invest in Them?
Top Electric Vehicle Companies in India: Overview
The electric vehicle has by now become a megatrend in the country. Every once in a while you will see an EV company making headlines in the finance industry. This indicates how the EV revolution has almost taken the nation by storm.
In India, the footprints of the domain are all set to capture the market. With the way the hype is set up among car enthusiasts, it wouldn’t be an exaggeration to state that there might be a day when almost all the cars sold in India would be an EV. If we look at the stats, we can see that back in 2017, when the country had initially started to explore and expand in the EV, the major companies in this space were Graphite India and HEG, while if we consider these stocks now, both have surged over 800% in a year. To understand the potential of the industry in the coming years, let us dive into its intricate details through this article:
Top Electric Vehicle Companies to Invest in India
If you are a real-time investor and are looking for a reliable sector for future investments, EV stocks are certainly your hot bait. With EV stocks booming in India, it shall help you to thrive in profits even in this falling market of 2022.
Let us find out the top EV companies and their market potential so as to give you a brief idea of which stocks should be probable options to fit in your portfolio to give you the best returns:
|Company Name||Latest Share Price||1 Year Share Return(%)||5-Year Share Return (%)|
|Amara Raja Batteries||Rs. 572.5||-2.43%||-29.7%|
|Ashok Leyland||Rs. 141||13.63%||4.80%|
|Exide Industries||Rs. 173||13.17%||-17.59%|
|Graphite India||Rs. 300||-36.46%||-51.6%|
|High Energy Batteries||Rs. 345.05||6.45%||255%|
|Himadri Speciality Chemical||Rs. 85||55.3%||-46.9%|
|Mahindra & Mahindra Limited||Rs. 1,318||55.1%||83.3%|
|Maruti Suzuki India||Rs. 8,733||0.3%||0.75%|
|Olectra Greentech||Rs. 391||-42%||99%|
|Tata Motors Limited||Rs. 433.25||-9.12%||20.4%|
|Tata Power Company Limited||Rs. 200.90||-9.3%||134%|
(Data as of February 23, 2022, Source: Google Finance)
Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns
Overview of the Electric Vehicle Industry In India
In India, the recent flux of the electric vehicles industry has made the year 2022 a highlight of the field. Also, the recent union budget that has introduced a policy for the EV infrastructure and the battery industry, aims for about 100% electric mobility in the nation by the next decade. This makes the industry an attractive incentive for real-time investors.
It shall also be interesting to note that the automobile industry in India contributes about 7.5 % to its GDP and an eye-popping 49 % of manufacturing GDP. This has a significant rippling impact on the nation’s economy. This implies that in the coming years, the growth of the EV industry shall also lead to the growth of multiple auto ancillaries and the related sectors as they keep up with the trends.
Also, India is the largest manufacturer of some vehicles such as tractors, the second-largest bus manufacturer, and accompanied the largest producer of 2W AND 3W globally. This shall lead to the vehicle penetration of 72 vehicles per 1000 people by the end of 2025 as per the market trends. India also accounts for about 40% of the total $31 bn of global engineering. Also, about 8% of the nation's R&D expenditure accounts for the automotive sector.
However, the EVs in India as yet have only been in the variants of fossil-fuel driven 2 and 4-wheelers. India is yet to experience high-performing luxury variants or even supercars like that Teslas in the automobile market.
Nevertheless, it cannot be denied the market potential is huge and yet to be explored. At the same time, the automotive segment is likely to witness a splurging growth in the Indian market with the introduction of EVs.
Top Electric Vehicle Companies in India: Why Invest in Them?
It can be pictured that the automobile market in India must be on a watchlist for exploration by a long-term investor. Let us consider some of the following rationales for investing in EV stocks in India in 2022
- The Automotive Mission Plan (AMP) of 2016–26 has captured the collective ambition of the government of India as well as the automotive industry. The industry seeks to contemplate its size and its contribution to the country’s development along with its footprint and competition across the globe.
- About 65 million direct and indirect jobs are expected to be created in the automobile sector in the coming decade. This suggests a lucrative motive for investors to consider investing in the automobile industry.
- The AMP 2016-26 envisages that the sector is likely to contribute more than 12 % to the country’s GDP and shall constitute a minimum of 40% of the manufacturing sector by the end of 2026. This figure is set in order shall change the automobile scenario and India.
- One interesting thing to note is that the plans for in-house manufacturing of lithium-ion batteries in the country might bring down the EV cost in due time and this shall reduce the dependency as well as the troubling import duties. Thus creating an opportunity for a huge market in India soon.
- The future of automobile manufacturing is said to be lying in the hands of EVs in India. With the current climatic conditions and concerns over it, EVs are likely to become the mainstay of the industry in the coming years. This must therefore be a target for a smart investor as the future of the EV market looks quite promising in India.
Suggestions for Investors Investing in EV Stocks:
- Research: It is suggested to do extensive research before investing in an automobile company in India. It is vital to understand the financial growth potential of the companies instead of backing your investment on historic data in the case of EV stocks.
- Look out for market leaders: India has seen substantial growth in the field of the auto–sector and is likely to further see exponential growth in the sector. Therefore it is important for an investor to check out the market competition and the trending companies of the industry which shall account for providing high future returns.
- Check on government investments: These stocks are likely to drive the demand-supply of the market in India. EV drives have been receiving huge support from the government of the nation, specifically for in-house manufacturing. The electric vehicle industry has geared up massively in India. Also, with the collaboration of the government of India and automobile manufacturers, the industry is set to see the light of development.
- Mergers and acquisitions: Another factor that acts as a driving force for the investment industry, is mergers and investment plans that have been lined up currently with the home companies. These are extensive fundamentals that an investor must consider to gather an in-depth analysis of where to park their investments in the market.
The need for electric mobility and green energy has skyrocketed the electric vehicle stocks in the country and among automobile manufacturers. These industries are in line to benefit from the set motive however it shall be a difficult road to step in as for standard The EV giant Tesla has marked this new era of the EV industry in the world.
As far as the market flourish is concerned, the pandemic has created a demand for products that helps to curb the alarming pollution level, and electric vehicles are a remarkable way to significantly reduce the emissions in the environment and a step towards sustainable growth.
However, from an investment point of view, following the recession pattern in the country, it shall not be advisable to put everything at stake rather analyze the positives and negatives and if the country has the potential to reach the said benchmark otherwise these numbers shall only be good to be true in pen and paper. Therefore it is advised to invest with caution and apply sincere due diligence before making a viable investment decision.
Important things to remember:
1. Do Not Blindly Follow Hot Tips
No matter how credible the source is, never follow a stock marketing tip blindly without conducting thorough research personally. Always select the stocks after doing proper research and analysis on the performance as well as the companies. While some tips can work out to give you huge benefits, the wrong ones can push you down under the risk pretty quickly.
2. Eliminate Loser Stocks from Portfolio
There is absolutely no guarantee that a stock will rise after a great fall. Know that it is extremely important to be practical about what is possible and what's impossible in the stock market. So, upon realizing that a stock is performing poorly in your portfolio, accept your mistake and sell it immediately to prevent further losses.
3. Don't Exceed Your Investment Budget Abruptly
While it's true that long-term investments are way better than other forms of investment, you shouldn't exceed your investment budget in a haste. Instead, decide on a fixed amount and invest it across various good stocks. Rather than investing in only one stock, divide your budget evenly across multiple good-performing stocks and shares.
Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns
What difficulties is India's EV industry facing?
Along with high cost, range anxiety, and inadequate charging infrastructure are significant barriers to widespread adoption. Consumers who purchase electric vehicles have high expectations for their vehicles' technological features. However, the pricey batteries account for a significant portion of the total cost of an EV.
What rules apply to an electric vehicle in India?
The same is true of the rules for electric cars. Driving a car without a license on a public road is prohibited. You do not need a driver's license to operate a car and two-wheeled electric vehicle (EV) with a top speed of up to 25 km/h and a power output of up to 250 watts.
Which manufacturers in India offer the most excellent electric vehicles?
Tata Motors, JBM Auto, Ola Electric Mobility, Mahindra Electric Mobility, Olectra Greentech, Ashok Leyland Electric, Hyundai, Hero Electric, Menza Motors, Lohia Auto, Kia Motors, etc. are the top manufacturers of electric vehicles in India.
What kind of battery do electric cars use?
Most all-electric and plug-in hybrid automobiles on the road use lithium-ion batteries. An advanced battery technology known as a lithium-ion (Li-ion) battery makes use of lithium ions as a crucial part of its electrochemistry. Lithium atoms in the anode are ionized and liberated from their electrons during a discharge cycle.
How long do EV batteries last?
Most EV batteries today have a life expectancy of 15 to 20 years within the car, plus a different life after that. It's also important to note that EV battery technology is still developing. As technology advances, it is anticipated that the battery lifespan will rise and that batteries will get more affordable, smaller, and lighter.
Are EVs sustainable in India?
According to projections from the Ministry of Skill Development and Entrepreneurship, the EV industry in India might produce 50 million or 1 crore indirect jobs by 2030 in addition to 10 million or 1 crore direct jobs.
Is India prepared for the benefits of electric vehicles?
Yes, India is prepared; creating and utilizing electric vehicles is not a difficult task. By pursuing a shared, electrified, and connected transportation future, India may reduce its projected energy demand for passenger road-based mobility by 64% and its carbon emissions by 37% by 2030.
Why is India in need of EVs?
By 2030, switching to electric mobility will enable India to reduce CO2 emissions by around one gigatonne. Every electric vehicle on the road reduces hazardous air pollution for future generations.
What are the prospects for EV in India?
From 2021 to 2030, the EV industry is expected to expand with a CAGR of 94.4%. Government attempts to incentivize manufacturers and customers to embrace EVs in India. Strict greenhouse gas (GHG) emissions regulations and Rising fuel prices have also contributed to the expansion of the EV market in India.
How are EV markets in India expanding?
The development of the e-charging infrastructure coincides with the installation of the FAME I and II schemes. With the decrease of the Goods and Services Tax (GST) on EV sales and subsidies of Rs. 10,000 crores, the government of India has given EV companies a significant boost.
How can electric cars be made better?
In order to reuse the expensive metals used in the batteries of electric cars, battery recycling needs to be improved. This will make batteries more environmentally friendly.
Is registration required for electric vehicles?
For battery-operated vehicles, the Ministry of Road Transport and Highways has announced an exemption from the registration and renewal fees for registration certificates and the assignment of new registration marks.
Can great distances be covered by electric cars?
Yes, most electric cars can go more than 200 miles on a single charge, but drivers who want to go further should know how and when to charge their cars. Although 'range anxiety,' or the worry that your electric car won't get you far, is on the decline, 'charging anxiety,' the opposite concern, is on the rise.
Which EV charging method is the fastest?
The quickest place to charge an EV is at a public DC fast charging station with a power of at least 50 kW. This allows you to charge your battery from 20% to 80% in around 40 minutes.
How long does it take to charge an electric vehicle?
An electric car can be charged in as little as 30 minutes or 12 hours. This is dependent on the battery size and charging point speed. With a 7kW charging station, it takes the typical electric car (60kWh battery) just under 8 hours to be fully charged.