Who would have guessed that Tesla’s net worth would jump to over $650 billion by the end of the year, from $117 billion in January 2020? That’s a very short period of time.
India is undergoing an electric vehicle revolution at the moment and investors are looking for companies that will benefit from the EV disruption as a result of this precipitous rise.
Investors can’t keep their hands away from companies even vaguely associated with this space, even if it’s a loss-making company, with the Indian government firing cylinders for electrifying the vehicle sector.
As we all know, the auto industry will not be the only one to profit from this megatrend. Opportunities exist in a variety of industries. Many stocks have now become proxy plays for investors hoping to participate in the worldwide electric vehicle boom.
Let’s take a look at the top EV stocks in each category and see what type of returns they’re providing the investors.
[Kindly note that this is not a stock advise. Do your own research before taking any decision regarding these stocks.]
1. Commercial Vehicles
Tata Motors, Olectra Greentech, JBM Auto, Ashok Leyland, SML Isuzu, Eicher Motors, and M&M are among the top EV stocks in the commercial vehicle industry.
Tenders are being sought from state governments to purchase electric buses for public transportation. This gives electric bus manufacturers like Ashok Leyland, JBM Auto, Olectra Greentech, Tata Motors, and Eicher Motors a big boost in orders and an opportunity to kickstart their business in the sector.
Tata Motors was one of the first businesses to produce an entirely self-contained electric commercial vehicle and is ready to release its first electric truck. With a market share of more than 70%, Tata Motors is already the market leader in the electric passenger vehicle class.
Maharashtra’s environment minister, Aditya Thackeray, recently promised that by 2028, all of Mumbai’s public transportation buses will be electric. This is a significant plus since the replacement of public buses with electric buses will provide chances for electric bus manufacturers.
2. 2,3 and 4-Wheeled Vehicles
This is the most obvious option for investors interested in the EV market. The key is to choose firms that make electric vehicles in the 2,3 and 4-wheeler sectors.
Tata Motors is in the 4-wheeler market, whereas TVS Motors, Bajaj Auto, Hero MotoCorp, and Greaves Cotton are among the 2 and 3-wheeler manufacturers. Despite the current significant gaps in the 4-wheeler EV space, such as a lack of goods and excessive pricing, companies have huge hopes for the future as these will be a thing in the past just like the range issue is gone.
2-wheelers dominate the Indian automobile market, accounting for 75% of all cars sold in the country. India’s domestic two-wheeler manufacturers are accelerating their electric vehicle ambitions in order to acquire a reasonable market share in the future years.
India is undergoing an EV revolution, with strong adoption rates in the 2,3 and 4-wheeler segments and growing interest in the private four-wheeler sector.
3. Manufacturers of Electric Vehicle Batteries
Modern electric vehicles are powered by lithium-ion (Li-ion) cells. But the most expensive component in an EV is also the lithium-ion battery, which accounts for 40-50% of the total cost. These batteries have revolutionised how goods are designed in today’s society.
Lithium-ion batteries are being heralded as the future of car energy, and properly so, given their inherent benefits. Lithium-ion batteries, for example, are substantially lighter than other rechargeable batteries and keep their charge exceedingly well while delivering steady energy production.
The rising use of electric vehicles in India will increase the demand for lithium-ion battery production. Most electric vehicle manufacturers currently import cells and batteries from China, which is the world’s largest supplier of lithium-ion cells. Some companies, on the other hand, are speeding up plans to manufacture lithium-ion cells in the country, expecting to take advantage of government incentives worth Rs 18,000 crore.
Amara Raja Batteries, Exide Industries, and Kabra Extrusion Technik are the market leaders in this area.
4. Infrastructure for EV Charging
Charging ports are the next most significant component in electric vehicles, after lithium-ion batteries. EV manufacturers are putting a lot of money and effort into charging station infrastructure.
The market for electric vehicle charging stations is expected to reach $29.7 billion by 2027, with a CAGR of almost 40% between 2020 and 2027. In order to accelerate the adoption of electric vehicles in India, the government plans to deploy up to 70,000 EV chargers over the next few years and the work has already begun.
Using the 70,000 gas pumps, at least 22,000 electric vehicle charging stations will be installed. Oil giants such as Indian Oil Corporation and BPCL have already committed to installing 17,000 electric vehicle charging stations through their outlets.