Top Electrical Vehicle Stocks India: Why Should You Invest ?

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Electrical Vehicles Industries Overview:

The electric vehicle has now become a national megatrend. Infrequently, EV companies make headlines in the financial sector. This suggests that the EV revolution has nearly swept the nation.Here is the list of Electrical Vehicle stocks india.

In India, the domain’s footprints are poised to capture the market. It would not be an exaggeration to say that the vast majority of automobiles sold in India could one day be electric vehicles, given the level of excitement among automotive enthusiasts. Graphite India and HEG were the leading firms in the EV industry in 2017 when the country was only beginning to research and expand in the sector. However, if we evaluate these stocks today, they have both increased by over 800% in the past few years. To comprehend the industry’s potential in the approaching years, let’s examine it comprehensively through this article.

What Will The EV Market Look Like In The Future?

Recent changes in the electric car market in India have made 2022 an important year for the sector. In addition, the current union budget, which includes a policy for the EV infrastructure and battery industry, aims for around 100 per cent electric mobility in the country over the next decade. This gives the industry a compelling investment opportunity for real-time investors.

It is also important to know that the automobile industry contributes approximately 7.5% to India’s GDP and a staggering 49% to its manufacturing GDP. This has a tremendous ripple effect on the economy of the nation. This suggests that in the next years, the rise of the EV business will also result in the growth of many auto-related ancillary industries and linked industries, as they adapt to the trends.

In addition, India is the largest producer of some vehicles, such as tractors, the second-largest producer of buses, and the largest producer of 2W and 3W in the world. According to industry trends, this will result in a car penetration of 72 per 1000 inhabitants by the end of 2025. India is also responsible for roughly 40 per cent of the $31 billion worldwide engineering market. In addition, around 8% of the nation’s R&D budget is allocated to the automotive industry. India’s automobile market has not yet witnessed high-performance premium variations or even supercars comparable to Teslas.

Nonetheless, it cannot be denied that the market’s untapped potential is enormous. In addition, the introduction of EVs to the Indian market is projected to result in a rapid expansion of the automotive industry.

Why Must We Happily Switch To Electrical Vehicle?

Today, the transition to electrified transportation is becoming increasingly inevitable. Electric vehicles are a highly appealing option, especially for the environment and the people in our community. As we continue to make progress, the shift to electric fleet cars can play a significant part in addressing the next major sustainability challenge posed by fossil fuel-based transportation.

Let’s examine why the change is a fantastic opportunity for both manufacturers and people.

Cost advantages – Low Maintenance Costs

Since the majority of automobiles are acquired through financing, the cost of ownership is of paramount importance to car owners. The day-to-day operating costs and maintenance expenditures are much less than those of petrol or diesel-powered vehicles. As EVs are inherently more reliable than internal combustion engine (ICE) vehicles due to fewer mechanical parts prone to failure and as they frequently provide better data to enable more proactive maintenance, the average maintenance cost for an EV can be approximately 50% less than that of a conventional vehicle.

Changeable battery technology

This technique enables the exchange of depleted batteries for charged ones at a charging station. While this technology is still in its infancy, once widespread acceptance occurs, electric vehicles will be the preferred means of transportation for automobile owners. For example, With vehicles such as the MG ZS EV, MG is aiming to bring this future technology to our country today.

Driving Experience

Many EVs are designed to be more pleasant and give a significantly smoother ride than ICE (internal combustion engine) vehicles. The suspension must be robust to support the weight of the batteries, and the absence of noise is complemented by a comfortable ride. Electric motors produce only a faint whirling sound, therefore passenger comfort is much enhanced. Using regenerative braking, one can also charge their vehicle while driving.

Higher Resale Value

EVs are simple to service. They require no maintenance and have a few moving parts that may ultimately require replacement. Unlike the average ICE vehicle, EVs have a smoother transmission and less wear and tear on spark plugs, valves, muffler/tailpipe, distributor, starter, clutch, drive belts, hoses, and a catalytic converter. EVs are also becoming increasingly appealing to people interested in experimenting with green mobility. Consequently, they have an excellent resale value. Few automakers, including MG, offer a buyback programme.

Zero Emissions

Pollution is a problem in cities all over the world, and India is no different. Given the climate problems the world is facing right now, there will come a time when parts of the country, especially big cities, will have “zero-emission zones.” When they are on the road, electric cars give off no pollution. Because EVs don’t make any emissions, CO2 and other harmful greenhouse gases will be reduced.

Top Electrical Vehicle Stocks India – Leading Vehicle Manufacturers (market-cap basis)

Maruti Suzuki Ltd

Maruti Suzuki India Limited, formerly Maruti Udyog Limited, is an Indian automobile manufacturer headquartered in New Delhi. It was founded in 1981 and was owned by the Indian government until 2003, when it was acquired by Suzuki Motor Corporation of Japan. As of February 2022, Maruti Suzuki holds a 44.2% share of the Indian passenger car market.

When Maruti Udyog Limited was created by the Indian government on January 24, 1981, Suzuki Motor Corporation was a small participant. Suzuki replaced Maruti Udyog Limited as the official JV partner and licence holder in August 2021. Maruti launched its first manufacturing facility in Gurugram, Haryana, in the same year. 1982 saw the signing of a licence and joint venture agreement (JVA) between Suzuki of Japan and Maruti Udyog Ltd. Initially, Maruti Suzuki primarily imported automobiles. During the first two years of India’s limited market, Maruti was permitted to import two totally completed Suzuki vehicles, and even then, the initial goal was to use no more than 33% Indian components. These considerably dissatisfied local manufacturers. There were concerns that the Indian market wouldn’t be able to maintain Maruti Suzuki’s relatively high production levels, and the government even considered altering the gas tariff and decreasing the excise tax in order to increase sales. Local production commenced with the debut of the SS30/SS40 Suzuki Fronte/Alto-based Maruti 800 in December 1983. 1984 saw the introduction of the Maruti Van, which used the same three-cylinder engine as the 800, and an increase in the Gurgaon plant’s installed capacity to 40,000 vehicles.

The 970 cc Suzuki SJ410-based Gypsy with four-wheel drive was introduced in 1985. The company’s 100,000th automobile was the 796 cc hatchback Suzuki Alto (SS80), which superseded the original 800 in 1986. In 1987, the company began exporting to western markets with the shipping of 500 autos to Hungary. In 1988, the capacity of the Gurgaon factory was increased to 100,000 units annually.

Mahindra & Mahindra Ltd

The Mahindra and Mahindra and Reliance Industries Ltd. have joined forces to look into making EV products and services. This partnership will also look into building charging stations for two-wheelers, three-wheelers, quadricycles, and e-SVCs (small commercial vehicles). With so much money backing it and the Reliance name, this EV stock is one that everyone is watching.

Tata Motors Ltd

Tata makes more vehicles than any other company in India. Its automobile business makes cars, utility vehicles, buses, trucks, and military vehicles, among other things. But compared to Mahindra, Tata is a newcomer to the electric vehicle (EV) market.

In India, Tata Motors Ltd and Fiat work together to make cars. One of the best things about Tata is that it can use resources from all over the world. Tata tries to come up with new technologies for cars that are both useful and good for the environment. With R&D and design centres in India, the United Kingdom, Italy, and Korea. Tata Motors and its UK-based subsidiary, Tata Motors European Technical Centre (TMETC), want to be a big player in India’s market for electric vehicles (EVs). Tata has focused on the Indian market for passenger vehicles and electric buses when it comes to electric vehicles (EVs). When it comes to four-wheeled vehicles, Tata has four to choose from. There are electric versions of the Nexon EV, Tigor EV, Nano EV, and Tiago. Tata thinks that State transport unions will want to buy its electric buses. In the long run, it is thought that around 400,000 buses will be needed to meet the demand.

Tata has also put a lot of effort into setting up charging stations as part of its work to improve the infrastructure of the industry.

Ashok Leyland

Ashok Leyland Ltd is the main company of the Hinduja Group. It is the fourth largest bus maker in the world and the market leader in India for trucks. The company has teamed up with Sun Mobility to learn more about the vehicle business. Ashok Leyland makes electric versions that work well in India and has also made it possible to swap batteries in electric buses to meet the country’s e-mobility needs. It has made a number of different types of electric buses, such as the Circuit, HYBUS, Electric Euro 6 Truck, and the iBUS. The company’s main goal right now, though, is to put more effort into exports.

Olectra Greentech

Olectra Greentech Ltd has been a leader in EV public buses since it was founded in 1992. This makes it hard to ignore. The company makes the most electric buses in India right now. The business belongs to the MEIL group. The company has many different kinds, such as the K6, K7, and K9 E buses. People think that their K9 series of E buses is a big step forward. It has regenerative braking, which makes up for 30% of the energy lost when stopping. Because of its fast charging technology, the buses can be fully charged in 2 to 3 hours. Lastly, their Iron Phosphate batteries let them go a long way on a single charge. The company is also the only one in India that makes electric airport buses that run on tarmac.

Recent changes for the company include opening a factory in Hyderabad that can make up to 10,000 units. The company had orders for 2000 buses worth between Rs. 3000 and Rs. 3500 crores for the December quarter of 2021.

List of Electrical Vehicle Stocks India For Investors (data as on 12/08/2022)

Company’s Name	Share price (INR)	Market Capitalization (INR)
Maruti Suzuki India Ltd	Rs. 8755	2.6 Lakh Crore
Tata Motors Ltd	Rs. 402.20	1.5 Lakh Crore
Mahindra & Mahindra Ltd	Rs. 1215.15	1.6 Lakh Crore
Ashok Leyland Ltd	Rs. 150.70	44.79 Thousand Crore
Olectra Greentech Ltd	Rs. 570.10	4.6 Thousand Crore

Associated Industries & Electrical Vehicle Stocks India Segement

The fact that the Electrical Vehicle Stocks India market is still young is seen as a chance waiting to be taken. MG Motors, Maruti Suzuki, Renault, Audi, Volvo, Hero, Ather, etc. are also in the Electrical vehicle stocks india with their own products. When the EV industry grows, other industries that work with it will also grow. This includes the battery and the EV chargers. Companies like Siemens, Schneider, Delta, etc. have shown interest.

But unfortunately, these companies won’t get involved until there is a big demand in the public four-wheeler market. On the other hand, consumers’ worries about the lack of fast chargers in India have been one of the main reasons why the EV industry hasn’t grown.

Due to the small size of the business, unorganised and small players are in charge. In order to stop this, the NITI Ayog is setting up EV chargers, which is a very important part of the plan. In India, there are 270 EV chargers that are already set up. NITI Aayog is working with NTPC to set up 100,000 charging stations for electric vehicles stocks india. ISRO has worked with other government agencies, like BHEL, to make batteries that use Lithium technologies.

At the moment, China, South Korea, Vietnam, Singapore, and Japan supply most of the world’s lithium needs. Reliance, Suzuki, Toshiba, Denso Corp, JSW Group, Adani, Mahindra, Hero Electric, Panasonic, Exide Batteries, and Amara Raja are among the other companies that have shown interest in making lithium batteries in India.

Why Invest In Electrical Vehicle Stocks?

Long-term investors should include India’s vehicle market on their list of markets to investigate. Consider the following arguments for investing in electric vehicle stocks in India in 2022:

The Automobile Mission Plan (AMP) of 2016–2026 has captured the government of India and the automotive industry’s united aspirations. The industry desires to consider its size, its contribution to the nation’s development, as well as its global footprint and competition.

Approximately 65 million direct and indirect employment are anticipated to be produced in the automobile industry over the next ten years. This indicates that investors have a profitable reason to consider investing in the vehicle business.

The AMP 2016-26 anticipates that the industry will contribute more than 12% of the country’s GDP by the end of 2026 and will comprise at least 40% of the manufacturing sector. This number is intended to alter the vehicle landscape in India.

Plans for domestic production of lithium-ion batteries may cut the price of electric vehicles in the future, thereby reducing the country’s reliance on foreign suppliers and the burdensome import levies. Thus presenting a chance for a massive market in India in the near future.

In India, it is believed that the future of automobile manufacturing is in the hands of electric vehicles. Given the current climate and related concerns, EVs are likely to become the industry’s staple in the future years. This must be the objective of a savvy investor, since the

Bottom Line

Nitin Gadkari, India’s minister of transport, has set a goal of 30 per cent electric vehicle sales by 2030. The objective is to have 30% of private automobiles, 70% of commercial vehicles, 40% of buses and 80% of two and three-wheelers go electric by 2030. With such massive investments, it would be ridiculous of us to abandon Electrical Vehicle Stocks India as one of the most popular money-making prospects in the market.

FAQs

Are there any tax benefits on EVs?

According to reports, those who purchase electric vehicles on loans are eligible for a tax break worth roughly Rs. 1.5 lakh. Additionally, the GST is fixed at 5% with no cesses for the purchase of EVs.