Last Updated on March 13, 2024 by ethinos
The fossil fuels like petrol and diesel are increasingly becoming unsustainable, unhealthy, and pricier. It has become a liability for the health of the world as it causes immense levels of pollution. These fuels are also depleting rapidly and they are becoming costly. In such a scenario, the Electric Vehicles are likely going to be the future of transport.
The EV industry has rapidly evolved in the past decade and there has been immense expansion of its logistics infrastructure. With the focus of the governments across the world getting settled on making the planet greener and safer for future generations, the EV industry has got a steady and stable start.
In India, the EV industry is strongly backed by the government that is committed to clean energy and has earmarked ₹10,000 crore to EV customers and ₹26,000 crore to the automotive industry to encourage them to start sourcing and producing these vehicles.
With such a promising future scenario and positive indicators, an investment in EV stocks is a wise decision. Read on to know more about the EV stocks in India, what factors you should consider and which are the best stocks from this industry.
Table of Content
What is an EV?
An electric vehicle is a vehicle that is powered by electricity, unlike the traditional vehicles which are run either by petrol or diesel. There are two major variants of electric vehicles, one being an all-electric vehicle, which is run entirely on electricity, and the other being a hybrid electric vehicle which operates on electricity as well as combustible engine fuelled by petrol or diesel.
What Makes EV Stocks Worth Your Investment?
The EV industry is one of the newest sectors to enter the stock market in India. While this sector is still in its infancy, there are indicators that make the EV stocks a strong contender for the future. Here is why the EV stocks are worth your investment:
Economical Transportation Charges
In the era where petrol and diesel is in its costliest ever range, the EVs have lesser running charges. The use of renewable energies for operating the EVs makes them a great alternative to the costly usage of petrol and diesel.
Zero Carbon Emission
The use of EVs contribute significantly to the goal of reducing carbon emissions, which is the goal of the governments across the world. The use of renewable energy sources, like solar charging stations, can ensure zero carbon emission.
Tax Benefits
As the Indian government and state governments offer subsidies and tax benefits for the purchase of EVs, the sector is going to further itself in the coming years.
5 Best EV Stocks in India
You can invest in EV stocks for long-term gains or for the purpose of diversifying your portfolio. The EV sector includes the EV manufacturers, the EV battery and parts manufacturers, those companies which set up EV charging stations. Here are the five best EV stocks in India in 2023.
| Name of the Company | Category | Stock Price (October 2023) | Stock Price 6-months-ago (April 2023) | Stock Price 1-year-ago(October 2022) |
| Tata Motors | Automobile Manufacturer | ₹618 | ₹426 | ₹414 |
| Maruti Suzuki | Automobile Manufacturer | ₹10,211 | ₹8,447 | ₹8,703 |
| Mahindra & Mahindra | Automobile Manufacturer | ₹1,534 | ₹1,155 | ₹1256 |
| aTVS Motor Company Ltd | Automobile Manufacture | ₹1497 | ₹1089 | ₹1074 |
| India Oil Corporation Ltd | Charging Stations | ₹89 | ₹77 | ₹67 |
Introduction to Best EV Stock Companies in India
Here is a brief introduction about the best EV companies in India where your investment is expected to grow. This introduction will let you familiarise with the top companies in this sector.
Tata Motors
Established in 1945, Tata Motors Limited is a high-profile Indian automobile manufacturer and a $37 billion organisation. This company comes with the trust of Tata and manufactures a wide range of SUVs, cars, buses, trucks and defence vehicles. Tata Motors has an employee strength of 56,727, has sold 13,35,819 vehicles and has 9200 sales and service points. Tata Motors has four EVs in the market which include Harrier, Sierra, Avinya and Nexon.
Also Read: Tata Motors- Key Insights
Maruti Suzuki
The Indian subsidiary of Japan’s Suzuki Motor Corporation, Maruti Suzuki India Limited has a robust background and a leading share in the Indian car market. Maruti Suzuki is renowned for its low-maintenance and good performance vehicles which include hatchbacks, SUVs, sedans and many commercial models.The EVs manufactured by Maruti Suzuki include Jimny EV, Futuro E, eVX, and WagonR Electric.
Also Read: Maruti Suzuki India Ltd.- A Complete Guide
Mahindra and Mahindra
The company was established in 1945 and has since come a long journey to be India’s one to top automobile manufacturers. Mahindra and Mahindra is headquartered in Mumbai and has so far produced nearly 1.5 million vehicles. It manufactures SUVs, eSUVs, pick-ups, small commercial vehicles, trucks and buses. Its EVs include XUV400, Zor Grand, Treo Auto, Treo Zor, Treo Yaari, eAlfa Mini, eAlfa Cargo, and E Verito.
Also Read: Mahindra & Mahindra Ltd. – An In-Depth Analysis
TVS Motor
TVS Motor Company Limited was established in 1978 and is headquartered in Chennai. It is one of the leading manufacturers of 2-wheelers and 3-wheelers. It boasts of an impressive annual production of 4.95 million two-wheelers and 120,000 three-wheelers. It has three manufacturing locations at Hosur in Tamil Nadu, Nalagarh in Himachal Pradesh, Mysore in Karnataka, and Karawang in Indonesia. Its EVs include TVS X and TVS iQube.
Indian Oil Corporation
Indian Oil Corporation was founded in 1959 and is headquartered in New Delhi. It operates under India government’s Ministry of Petroleum and Natural Gas, and generated a revenue of $120 billion in 2022. In November 2021, Indian Oil announced that it will install EV charging facilities at its 10,000 fuel stations over the next three years. By June 2023, it operated the highest number of EV charging facilities in India and had installed such facilities at 5,600 fuel stations.
Healthy Investment Tips
The EV sector is comparatively a young industry and there is insufficient data available to forecast its long-term progress. So, do not make decisions based on emotions or your liking or dislikes. Know that benefits are as real as the risks associated with your investment.
You must also be certain about investment goals, whether you want to make a short-term investment, or stay on for a medium or long term. When you plan to invest in stocks, make sure you do a thorough research and have the basic knowledge about the fundamentals and working of the stock exchange, the behaviour and price fluctuation of the stocks, and the company in which you are planning to invest.
Frequently Asked Questions
The electric vehicle industry in India, as in elsewhere, is in its early stages. Any medium or long term investment in EV stocks is likely a good decision. You should, however, calculate all the risks associated with such investments before making any decision.
There are several sectors in which you can invest in 2023 and which have a potential to earn good profit. These sectors include IT, automobiles, oil and natural gas, and EV stocks.
The best electric vehicle stocks in India which you can buy are Tata Motors, Maruti Suzuki, Mahindra and Mahindra, TVS Motors, and Indian Oil.
The advantages of investing in EV stocks is that it is an upcoming sector which has a huge potential to grow. Since the world is increasingly trying to transition to clean energy, EVs can be a transport of the future.
EV stocks are likely to go up. However, you should properly understand and be careful about the risks while making any investment.
