8 - 11 minutes readBest EV Stocks in India?

List of the Best EV Stocks in India 2022 – India’s Electric Vehicle Manufacturers: When it comes to transportation, new technologies are constantly emerging all around the world. These alternative transportation solutions are mostly based on electric vehicles, with many companies getting on board to gain traction before the industry makes a major move away from traditional fossil fuels.

This shift can also be interpreted as existing companies attempting to play catch-up in the electric vehicle (EV) industry with companies like Tesla and the standards set by them before it’s too late. Today, we look at the electric vehicle industry in India and the finest EV stocks in India for investors to keep an eye on.

Best EV Stocks in India

What are EV Stocks?

An EV is an abbreviation for an electric vehicle. EVs are cars that are partially or entirely powered by electricity.

Electric vehicles have minimal operating expenses since there are fewer moving parts to maintain, and they are also very environmentally friendly because they consume little or no fossil fuels (petrol or diesel). While some EVs employed lead-acid or nickel-metal hydride batteries, lithium-ion batteries are currently regarded as the norm for modern battery electric vehicles since they have a longer lifespan and are good at retaining energy, with a self-discharge rate of only 5% per month. Despite this increased efficiency, there are still issues with these batteries since they can experience thermal runaway, which has resulted in fires or explosions in the Tesla Model S, despite efforts to improve battery safety.


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Electric Vehicle (EV) Sector Segmentation in India

Most people associate the electric vehicle sector with big automobile manufacturers like Tata Motors or Mahindra Auto, although this sector is not confined to manufacturers. The electric vehicle (EV) sectors can be divided into four primary categories based on the numerous parts, segments, and infrastructure used:

#1 Auto Manufacturers

This category covers companies that assemble all of the spare parts and technologies to create a car.

#2 Auto Parts and EV Software

This category includes companies that produce spare parts as well as other technological software that allows EVs to be smart and technologically advanced.

#3 Battery Manufacturing

The battery that drives an EV is its heart. An electric vehicle’s primary source of energy is a battery.

#4 EV Charging Stations

Because the battery that powers an EV must be charged on a regular basis in order to run the car, this group covers organizations that create the infrastructure required to set up charging stations in various public places as well as the customer’s residence.

With this categorization in mind, we have developed a comprehensive portfolio of 15 Indian electric vehicle (EV) stocks to watch in the future. The list includes both previously listed companies and newbies to the market who may prove to be a worthwhile investment.


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Auto Manufacturers (EV) Electric Vehicle Stocks in India

The following is a list of electric vehicle stocks in the automaker sector. We have separated the stocks into two categories: proven/established players and unproven/new players.

Proven/Established Players in EV Stocks in India

Here are some companies with automotive sector experience.

1. TATA Motors

TATA Motors, one of the market’s oldest companies, is the most diverse corporation in the industry. The corporation has a strong presence in every market, from four-wheeler passenger cars to heavy commercial vehicles such as buses, lorries, and trailers.

TATA Motors is one of the greatest electric vehicle stocks in India, with the assistance of its friends like TATA Chemicals for batteries, TATA ELXSI for software, and TATA Steel for body structure. TATA Motors has a lot of room for growth in the future, and it’s already exhibiting signs of it. TATA Motors’ share price is ₹454 as of April 2022, up ₹200 from the previous month (about 70 percent ).

2. Mahindra & Mahindra

Mahindra & Mahindra, like TATA Motors, has a strong presence in a wide range of vehicle classes, including passenger automobiles, lorries, and various commercial vehicles.

Mahindra has a long history in the agricultural transport market, having produced a variety of tractors. As of April 2022, the share price of Mahindra & Mahindra was ₹858.

3. Maruti Suzuki India Ltd

When it comes to budget-friendly entry-level cars, Maruti Suzuki India is the market leader. The company has the majority of the market share because it was the first in its category.

The main difference is that the firms mentioned above have already taken a step forward in the EV industry with their vehicles, but Maruti Suzuki has yet to enter the market. The business is expected to introduce its best-selling vehicle, the WagonR, in an electric model as its first vehicle on the market.

Maruti Suzuki India is the market leader in the entry-level car market. As the first in this area, the corporation controls the majority of the market.

4. Hero MotoCorp Limited

With four-wheelers dominating the EV market, there is little discussion of electric two-wheelers. Hero MotoCorp has taken the initiative to broaden the market for electric two-wheelers.

In the Indian market, where two-wheelers are the most affordable option for private transportation for anyone, a good lineup of already established players like Splendor, Passion Pro, and Hero Pleasure can turn out to be a good move, giving the two-wheeler giant the first-mover advantage, leaving competitors like Bajaj, TVS, and the newcomer Ola Electric in the dust. In terms of Hero MotoCorp share price, it was around ₹2343 as of April 2022.

Unproven/New Players in EV Stocks in India

Newcomers or companies with an uncertain position in the segment make up this group.

1. Himadari Specialty Chemical Limited

The company is well-known in the chemical industry, but it has just declared plans to enter the EV market by producing electric bicycles. As of April 2022, the company’s share price was reported to be about 79.

2. Greaves Cotton

Greaves Cotton has just bought a two-wheeler electric firm named Ampere Vehicles with the goal of joining the two-wheeler EV manufacturing market as the segment has a significant potential to develop in the future. Greaves Cotton’s share price has nearly doubled in the last year, rising from ₹127 to ₹206 as of April 2022.

Auto Parts and EV Software Stocks in India

Here is the list of Electric Vehicle Stocks in the Auto Parts sector.

1. Motherson Sumi Systems Limited

Motherson Sumi is one of India’s leading auto-parts producers. With a massive production scale, the company has already bought many small-scale auto parts manufacturers and has begun to create EV-specific parts.

Because an EV requires more components than a typical vehicle, Motherson Sumi’s business is likely to grow in the next years, making it profitable for the company. In the future, the company plans to supply EV-specific parts to its various consumers.

Motherson Sumi’s share price has grown from an all-time low of ₹54 to ₹145 as of April 2022 in the last two years.

2. TATA ELXSI Limited

TATA ELXSI is an IT-based software development business that specializes in the creation of software for TATA Motors’ electric vehicles.

Apart from this, the company has also developed stock software that can be used by any electric vehicle. ELXSI is also expected to sell this specifically designed software in the form of licensing to other auto manufacturers in the future.

In addition, the company has created stock software that can be utilized by any electric vehicle. ELXSI is also planning to sell this specifically created software to other automakers in the future through licensing.

TATA ELXSI’s share price has risen dramatically in the last year, with a 52-week low of ₹2315 and a 52-week high of 7800. As of April 2022, the share is now trading at ₹8626.

Battery Manufacturing for Electric Vehicle Stocks in India

Here is a list of stocks in the Battery Manufacturing industry that are related to electric vehicles.

1. Exide Industries Limited & Amara Raja Batteries Limited

Both of these businesses are significant participants in the battery market. Until now, they have been producing lead-based batteries for use in traditional automobiles. However, they are already on the way to producing lithium-ion-based batteries, which are a key component of an electric car.

For the past two years, Exide Industries’ share price has ranged between ₹150 and ₹200. Exide Industries’ current share price is ₹179 as of January 2022. As of April 2022, the share price of Amara Raja Batteries was ₹161.

2. TATA Chemicals Limited

Tata Chemicals’ perspective differs from that of its competitors. The company’s goal is to create a battery generation ecosystem. They want to collect raw materials for battery production, manufacture the batteries at their manufacturing facilities, and recycle the worn-out batteries in the future.

The alliance with its family company TATA Motors would serve as validation and lead to significant exposure of TATA Chemicals’ batteries in the native Indian market as well as the worldwide market under the names of its subsidiaries Land Rover and Jaguar. TATA Chemicals’ share price concluded at ₹1016, up approximately ₹440 from the previous year.

EV Charging Stations Electric Vehicle Stocks in India

The following is a list of EV charging station stocks. Electric vehicle charging station stocks will also perform better because they are part of the EV ecosystem.

1. TATA Power Company Limited

TATA Power is a consumer energy provider with a well-established business. With a rising EV user base in India, TATA Power, in collaboration with TATA Motors, has also joined the race to put up EV battery charging and swapping stations across the country.

The company has installed public charging stations in various parking lots and malls, as well as private charging stations in client homes and authorized automotive servicing locations. TATA Power’s share price was approximately 284, representing a 170 percent increase over the previous year.

2. Power Grid Corporation of India Limited

A state-owned firm that specializes in high-voltage transmission and grid management, as well as providing high-power electricity to industries such as telecommunications. The business is on a mission to establish charging stations across India.

With a state ownership label, the company can be expected to receive government contracts and deals in the future to put up charging stations. As of April 2022, the share price of Power Grid Corp was estimated to be between ₹210 and ₹229.

3. National Thermal Power Corporation Limited (NTPC)

NTPC, one of India’s leading thermal power-producing corporations, had recently begun its transition to solar power generation.

The company primarily manufactured and installed solar panels and other solar-powered machinery. Following its success in the solar power sector, the state-owned power firm is now focusing on EV power generation through the installation of charging stations.

According to reports, we may see solar-powered EV charging stations under the moniker NTPC in the future. The NTPC share price was discovered to be at levels of 152, representing a 35 percent increase over the previous year.

4. Indian Oil Corporation Limited (IOCL)

IOCL is India’s largest state-owned petrochemicals corporation, with the greatest market share in the modern petroleum industry. It is a prominent player in the petrol and diesel industries. Despite the fact that the EV industry is a huge competitor to IOCL and its business, it has taken a move toward the EV sector by installing charging stations at its petrol pumps across India.

With the increased demand for charging stations at gas stations, the firm has recommended increasing the number of charging stations at gas stations. As of April 2022, the share price of IOCL was approximately ₹129.

Conclusion

This brings us to the end of our list of the finest electric vehicle stocks in India. The essential point to note here is that a TATA business can be found in every part of the EV sector, and this is the ecosystem that the TATA Group of Companies is aiming for. A whole production cycle comprises the creation of spare parts and batteries, the development of software, the assembly of these elements to make an electric vehicle, and the installation of charging stations for EVs in various locations across the country.

Apart from that, prospective competitors such as Hero MotoCorp and Maruti Suzuki are in the process of introducing their EVs in the market. From a high level, the companies indicated above could be a good bet to make because the EV category in India has yet to reach its full potential. We hope that the information we gave is useful to your inquiry into the EV world. In the meantime, Happy Investing!