3 - 5 minutes readWhy are EV Stocks in demand?

PM Modi stated at the COP26 Summit in Glasgow in November 2021 that India will obtain 50% of its energy from renewable sources by 2030 and achieve net-zero carbon emissions by 2070. After China, the United States, and the European Union, India is the world’s fourth-largest carbon dioxide emitter. As a result, the Indian government has aggressively pushed for the adoption of electric vehicles in the country. The concentrated efforts appear to be bearing fruit, as 2022 appears to be the year of Electric Vehicle stocks or EV stocks.

Why are EV Stocks in demand?

EV stocks are hot for good reason as the industry rapidly takes market share from gasoline-powered rivals.

The exponential increase in the number of electric two-wheelers in India by 2021, as well as the simultaneous debut of electric cars by Tata, BMW, Kia, Honda, and Hyundai, have all shifted the focus of the Indian automotive market to electric vehicles. This interest is mirrored in EV stocks, and even if you are not a stock market participant, it is difficult to miss or dismiss the buzz surrounding the Indian EV sector.

Climate change is one of the primary reasons that countries are being obliged to adopt an electric alternative. According to the Environmental Pollution Index (EPI) 2020, India ranks 168th out of 180 countries in terms of air quality.

Electric vehicles (EVs) are gaining market share at a rate that investors may not have predicted for years. According to EV-Volumes.com, EVs accounted for 6.3 percent of vehicles sold in the first half of 2021, more than double the 3 percent market share in the first half of 2020. In certain European countries, EVs account for more than 50% of all passenger vehicles sold each month.

The push for electric vehicles has been one of the tactics used to fight this (EVs). This will benefit both the environment and India’s general economic health. India now imports crude oil, which results in a $60 billion deficit.

The government has set a goal of reaching 100 percent electrification by 2030. Given the early phases of adoption that we are now in, this is a massive aim.


You may also read about: Best EV Stocks in India?


If you are an investor seeking the greatest sector to invest in with a bright future, the electric vehicle is a tempting lure. In India, EV stocks are rising, and in the future, you will see not only car stocks, but also stocks that assist the industry.

We have extorted Mother Earth and reached the limit of natural resource use, and we must now look for alternate means to meet our requirements. The automobile industry is one such sector that is entirely dependent on natural resources. It is heavily reliant on gasoline and diesel. But, as we all know, renewable energy sources are rapidly dwindling and are finite, therefore we began the road toward natural gas as an alternative.

It is past time to transition to renewable energy sources. The automobile sector is among the leaders in developing electric-powered vehicles for consumers, thereby making the earth safer and greener. Thus, shifting to more sustainable options proved to be a wise decision for automakers.

Following the pandemic, people began to recognize the need for electric automobiles. The worrisome level of pollution, which was drastically decreased during the lockout, has provided a new viewpoint on sustainable transportation.

Because of the rise in electric vehicles, 2022 is the best year to acquire electric vehicle penny stock in India. A policy for EV infrastructure and the battery industry was released in the latest union budget. As a result, the GOI intends to achieve 100 percent e-mobility in the country within the next decade.

The automobile industry is one such sector that was entirely dependent on natural resources. The industry has been heavily reliant on natural fuels such as gasoline and diesel. However, these sources of energy are finite, so we had already begun our path to use natural gas as an alternative. 

With a similar goal of transitioning to a more sustainable source of energy, the automobile industry has begun creating electrically driven automobiles for consumers, which has shown to be a beneficial decision for automakers.

One such advantage can be observed in the stock prices of these manufacturers. The adoption of electric car production has resulted in an increase in the value of these automobile behemoths’ stock. So we studied the best electric vehicle stocks in India and selected the best pick for you to consider investing in.

Conclusion

There’s a reason for all the excitement around EV stocks. EVs are gradually replacing internal combustion engine (ICE) automobiles.

As previously said, the shift to 100 percent EVs will provide opportunities not just for EV manufacturers but also for a number of other EV stakeholders. You only need to invest in the appropriate EV stocks to make a fortune.

Fortunately, IPO Spy’s investigation has identified a previously unknown technique to capitalize on this gigantic 15x opportunity in Electric Vehicle (EV) Stocks.