Do you own an electric vehicle? If not already, you will likely own one soon. This is because our future is electric beyond petrol. You must be aware of that because we talk about this topic almost all the time. Let’s shift our focus to a new topic today. What are the companies and sectors can benefit from this sustainable revolution? TATA Motors is the name that comes to mind first but there are also other companies belonging to the automobile sector, and auto-ancillary sector, some are making batteries, some are involved in infrastructure and charging station development, and more. So, let’s discover the top EV Stocks In India in 2024 which are going to be benefitted from this Electric Vehicle revolution in the country in the coming years.
Industrial Trend- Electric Vehicle Market Growth and Projections
As per Indian Brand Equity Foundation (IBEF), India’s electric vehicle (EV) market is set to reach US$ 7.09 billion (Rs. 50,000 crore) by 2025. The CEEW Centre for Energy Finance identifies a US$ 206 billion opportunity by 2030, necessitating a US$ 180 billion investment in manufacturing and infrastructure.
Investment and Financial Opportunities– NITI Aayog and the Rocky Mountain Institute (RMI) forecast India’s EV finance industry to grow to US$ 50 billion (Rs. 3.7 lakh crore) by 2030. The India Energy Storage Alliance predicts a 36% CAGR in the EV market until 2026 and a 30% CAGR in the EV battery market.
Sales and Demographics– India sold 13,25,112 EVs in FY24 (until January 2024). Rising middle-class incomes and a large youth population are driving demand.
Global Market Context– The global EV market, worth US$ 250 billion in 2021, is projected to grow to US$ 1,318 billion by 2028.
Foreign Direct Investment– From April 2000 to December 2023, India’s automobile sector received US$ 35.65 billion in equity FDI, supporting the EV market’s growth.
Government Initiatives and Policy Support
The Indian government has committed US$ 3.5 billion in incentives over five years until 2026. This revamped scheme aims to boost the production and export of clean technology vehicles.
Key Initiatives– Initiatives like Make in India, the Automotive Mission Plan 2026, and NEMMP 2020 are expected to benefit the sector significantly.
FAME India Scheme Phase II– The FAME Scheme has been extended for two more years, up to March 31, 2024. In March 2023, the Central government allocated US$ 72.41 million (Rs. 800 crores) under the FAME India Scheme Phase II. This funding is for IOCL, BPCL, and HPCL to set up 7,432 public fast-charging stations nationwide.
Manufacturing and R&D Hub- NATRiP– The Government aims to make India a global manufacturing and R&D hub. It has established the National Automotive Testing and R&D Infrastructure Project (NATRiP) centres and the National Automotive Board to facilitate cooperation between the Government and the industry. Since 2015, five testing and research centres have been set up under NATRiP.
Automotive Mission Plan 2016-26-The Automotive Mission Plan 2016-26, a joint initiative by the Government of India and the Indian automotive industry, provides a roadmap for industry development.
Let’s move on to discuss about the top EV stocks in India in 2024 to know which companies are benefitting from this revolution in the country.
Top EV Stocks In India in 2024
The Top EV Stocks In India in 2024 are: Tata Motors Ltd, Mahindra & Mahindra Ltd, JBM Auto Ltd, Hero MotoCorp Ltd, Exide Industries Ltd, Bajaj Auto Ltd, Ashok Leyland Ltd, Olectra Greentech Ltd, TVS Motor Company Ltd, Suzlon Energy Ltd, Amara Raja Energy & Mobility Ltd, Sona BLW Precision Forgings Ltd. Discover the data sheet about all the companies by the end of the post.
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Data collected as of 13th May 2024.
Let’s Explore Some Of These EV Stocks In India
TATA Motors
One of India’s largest automotive manufacturers, Tata Motors has a strong presence in the electric vehicle market with offerings like the Tata Nexon EV and upcoming models. The company boasts a fleet of 9 million vehicles nationwide. TATA Motors is renowned for its innovation, offers a wide array of integrated, smart, and e-mobility solutions.
In FY22, Tata Motors took strategic steps by establishing two subsidiaries: Tata Motors Passenger Vehicles Ltd, dedicated to IC engine-powered passenger vehicles, and Tata Passenger Electric Mobility Limited, focusing on accelerating the passenger EV business.
A significant milestone was reached when Tata Motors inked a deal with TPG Rise Climate, securing an investment of Rs. 7,500 crore in the passenger EV business, thereby securing a 11% – 15% shareholding. The year FY22-23 witnessed the launch of groundbreaking products including the Tiago EV and TATA Ace EV. Noteworthy was the introduction of India’s first commercially launched 4-wheeled electric mini truck, along with the Intra Bi-fuel, India’s first Bi-Fuel pick-up truck.
Tata Motors boasts a robust network of subsidiaries, with 86 in total, including direct, indirect, associate companies, joint ventures, and joint operations, as of March 31, 2022.
For the past 1-year, the company has given an outstanding performance. The annual revenue surged by 11.83% to reach ₹74,452.96 Crores Meanwhile, the annual net profit soared by an impressive 189.65% to ₹7,902.08 Crores. Additionally, the stock price experienced a remarkable increase of 86.72%, surpassing its sector performance by 22.4%.
Here’s a detailed Fundamental Analysis Of Tata Motors: Beyond The Dashboard
Exide Industries
Exide Industries, known for its automotive batteries, has diversified into the electric vehicle battery segment, supplying batteries for EVs in India. The company specialises in the manufacturing of lead acid storage batteries and inverters, catering to a diverse range of needs. Their product line spans from 2.5 Ampere-hour (Ah) to 20,200 Ampere-hour batteries.
They offer automotive batteries, industrial batteries, and even submarine batteries, marketed under brands like EXIDE, SF, SONIC, and Standard Furukawa domestically. Internationally, their products are known under the DYNEX, INDEX, and SONIC brands.
In FY 2021-22, Exide Industries introduced its first lithium-ion-based home power backup system, branded as Exide Integra. This marks a significant leap in its product offerings. Notably, their batteries powered several new models including Maruti Suzuki’s new Baleno, Hyundai’s Alcazar, and MG Motor’s Astor.
To establish a new Li-ion cell manufacturing plant in India, the business formed Exide Energy Solutions Limited (EESL). It is a wholly-owned subsidiary, to strengthen its position in the market. As of March 31, 2022, Exide Industries boasts 8 subsidiaries and 2 associate companies. This showcases its robust presence and commitment to innovation and expansion.
In the past year, the annual revenue saw a notable increase of 10.9%, reaching ₹16,859.68 Cr. Similarly, the annual net profit experienced a moderate rise of 6.56% to ₹876.68 Cr. Moreover, the stock price surged impressively by 139.89%, outperforming its sector by a significant margin of 74.27%.
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Olectra Greentech Limited
Olectra Greentech specialises in electric buses and has been supplying electric buses to various state transport corporations across India. It is primarily engaged in manufacturing composite polymer insulators (12.5%) and electrical buses (87.5%). Since FY2018, it has ventured into manufacturing electrical buses.
Listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), the company has a subsidiary, a Joint Venture, and an Associate Company as of March 31, 2021. These include TF Solar Private Limited, SSISPL-OGL-BYD Consortium, and Evey Trans (SMC) Private Limited, respectively.
There were about 1,188 of its E-Buses on Indian roads as of March 31, 2023.
There was notable growth in several key metrics during the previous fiscal year. The annual revenue increased by 5.9%, reaching ₹1,165.74 Crores. Annual net profit showed a significant rise of 17.13%, totalling ₹76.8 3 Crores. Additionally, the stock price experienced a remarkable surge of 148.37%, surpassing its sector performance by 82.75%.
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TVS Motor Company Limited
TVS Motor Company, the flagship of TVS Group, ranks as India’s third-largest two-wheeler manufacturer. It produces two-wheelers, three-wheelers, and related accessories with an annual capacity of 4 million 2-wheelers and 120,000 three-wheelers. With a presence in over 60 countries, it stands out as a major exporter of two-wheelers and three-wheelers from India.
Distinguished by its presence in the domestic moped segment, TVS Motor Company holds a market share of approximately 25% as of H1FY24.
TVS Motor Company has ventured into electric scooters, targeting urban commuters looking for eco-friendly mobility solutions. In the fiscal year 2022-23, the company launched several new products and variants, including TVS Ronin, TVS NTORQ 125 XT, NTORQ 125 Race Edition, TVS Jupiter Classic, TVS Radeon Digi Cluster, TVS Sport, and the electric TVS iQUBE.
Looking ahead, TVS Motor Company plans to diversify its electric vehicle (EV) portfolio by introducing new EVs in the 5-25kW segment in FY24-FY25. Furthermore, it aims to unveil an electric three-wheeler during FY24.
In the past year, Annual revenue surged by 22.23% to ₹39,250.56 Crore. Annual net profit saw a robust increase of 26.92% to ₹1,686.37 Crore. The stock price soared impressively by 67.17%, outperforming its sector by 1.55%.
Suzlon Energy Ltd
Suzlon Energy is not an EV stock per se. Still, its involvement in the renewable energy sector supports the larger objectives of decarbonisation and sustainability, which are essential to expanding the electric vehicle market. As the use of electric vehicles increases, its wind energy solutions obliquely support the infrastructure needed for EV charging.
With a global presence across 17 countries, India’s largest renewable energy solutions provider, Suzlon Energy offers a comprehensive range of wind energy services. This includes from project design to asset management.
Beginning with a 3 MW wind farm project in Gujarat in 1995, Suzlon Energy has since achieved over 20 GW of worldwide wind energy installations by 2022-23. Its wholly-owned subsidiary, Suzlon Global Services Limited (SGSL), is a major player in the operations and maintenance industry, managing approximately 11.9 GW of wind assets in India.
In the past year, Annual revenue declined by 9.29% to ₹5,990.16 Crores. However, annual net profit surged remarkably by 1,527.43% to ₹2,849.01 Crores, indicating strong profitability despite revenue decline. The stock price skyrocketed by 378.79%, outperforming its sector by an impressive 256.96%.
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Company’s Datasheet
| Company | Sector | Current Price (In ₹ ) | Market Cap (In Crores) | ROE | Dividend Yield | Debt-to-equity | P/E Ratio | 3-year Returns | 1-year Return |
| TATA Motors | Automobile | ₹ 955 | ₹ 3,50,160 | 49.4 % | 0.19 % | 1.26 | 10.9 | 50% | 103% |
| Mahindra & Mahindra Limited | Automobile | ₹ 2,168 | ₹ 2,69,547 | 18.1 % | 0.74 % | 1.65 | 24.2 | 44% | 72% |
| JBM Auto Ltd | Auto Ancillaries | ₹ 1,804 | ₹ 21,330 | 16.3 % | 0.07 % | 1.82 | 119 | 122% | 144% |
| Hero MotoCorp Limited | Automobile | ₹ 4,737 | ₹ 94,709 | 22.5 % | 2.09 % | 0.03 | 24.6 | 20% | 87% |
| Exide Industries Limited | Auto Ancillaries | ₹ 437 | ₹ 37,162 | 7.30 % | 0.44 % | 0.09 | 42.4 | 36% | 138% |
| Bajaj Auto Limited | Automobile | ₹ 8,876 | ₹ 2,47,794 | 26.4 % | 0.89 % | 0.07 | 32.2 | 33% | 98% |
| Ashok Leyland Limited | Automobile | ₹ 192 | ₹ 56,363 | 15.0% | 2.61% | 3.87 | 23.9 | 21% | 32% |
| Olectra Greentech Limited | Automobile | ₹ 1,562 | ₹ 12,818 | 8.76 % | 0.02 % | 0.13 | 167 | 108% | 146% |
| TVS Motor Company Limited | Automobile | ₹ 2,027 | ₹ 96,291 | 27.4 % | 0.39 % | 1.97 | 57.1 | 51% | 67% |
| Suzlon Energy Limited | Capital Goods - Electrical Equipment | ₹ 38.4 | ₹ 51,816 | 0% | 0.00 % | 0.04 | 105 | 97% | 384% |
| Amara Raja Energy & Mobility Ltd | Auto Ancillaries | ₹ 1,041 | ₹ 19,061 | 14.8% | 0.59% | 0.02 | 23.3 | 12% | 71% |
| Sona BLW Precision Forgings Limited | Auto Ancillaries | ₹ 570 | ₹ 33,428 | 20.4% | 0.53% | 0.15 | 68.1 | % | 11% |
Data collected as of 13th May 2024.
Opportunities for the EV Stocks in India
Ola Electric IPO- Ola Electric is set to become the first auto company in India to launch an IPO in over two decades. The IPO is expected to be valued at Rs. 8,500 crore (US$ 1.01 billion).
Tata Motors Investment– In October 2023, Tata Motors signed an agreement to acquire a 27% stake in Freight Tiger, a SaaS company, for Rs. 150 crore (US$ 17.99 million).
Mahindra & Mahindra Fundraising– In July 2023, Mahindra & Mahindra entered advanced talks with British International Investment (BII) and other global investors to raise up to US$ 602.72 million (Rs. 5,000 crore) for its EV unit.
Hero MotoCorp Investment– In June 2023, Hero MotoCorp announced plans to invest up to US$ 180.81 million (Rs. 1,500 crore) to develop premium bikes and EVs in India.
Kinetic Green Energy Fundraising– In June 2023, Kinetic Green Energy and Power Solutions planned to raise up to US$ 100 million by selling a 10-15% stake in the company to investors.
Power Finance Corporation Loan– In April 2023, Power Finance Corporation Ltd (PFC) approved a US$ 76.39 million (Rs. 633 crore) loan for 5,000 passenger EVs and 1,000 cargo EVs.
Limitations and Challenges for the EV Stocks in India
While the electric vehicle (EV) revolution in India holds immense promise, there are several limitations and challenges that need to be addressed:
1. Infrastructure: Insufficient charging stations hinder widespread EV adoption, especially in rural areas.
2. Cost: High initial investment in EVs deters many consumers despite potential long-term savings.
3. Range Anxiety: Limited driving range on a single charge discourages EV adoption due to concerns about running out of power.
4. Battery Technology and Recycling: Dependence on reliable, affordable batteries and efficient recycling infrastructure is crucial for sustainable EV growth.
5. Grid Capacity: Increased demand for electricity from EV charging strains the grid, necessitating upgrades to ensure a reliable power supply.
6. Policy and Regulations: Clear, supportive policies are essential for promoting EV adoption and investment in infrastructure.
Addressing these limitations will require collaborative efforts from the government, industry stakeholders, and the community to overcome the barriers and realize the full potential of the EV revolution in India.
Let’s Wrap it Up
The electric future of India is imminent, driven by the ambitious goals of the government and the urgent need to address climate change and ecological imbalance. Globally, there’s a collective effort to combat these pressing issues, urging us to seek sustainable, cleaner, and greener solutions. Transitioning from conventional modes of transport to electric vehicles (EVs) is not just necessary, but imperative. As market enthusiasts, we not only have a responsibility to embrace this transition but also an opportunity to light our future with profits. The EV revolution presents untapped opportunities for the environment, emerging and established companies, and us as investors.
In conclusion, let’s recognize the potential of the electric revolution and explore the top EV stocks in India. Together, we can contribute to a greener future while potentially benefiting from the growth of this transformative industry.
That’s all for today’s post. Hope you get some valuable insights from here.
Happy reading!
Disclaimer
The blog is meant for informational purposes and serves the general analysis of the stocks. The contents provided here are based on careful research and analysis utilizing the fundamental and technical indicators over a while. The post does not have any direct recommendations about investing or trading in the securities market. Thorough research and careful consideration are necessary for individuals to fulfill their responsibility in making financial decisions. Seeking professional advice before making any financial decisions is always advisable.
