Electric vehicles (EVs) which began life as a good-to-have thing about two decades ago, seem to have arrived, driven by concerns of rising carbon footprint and tough emissions regulations. Raw material costs, price, and limited battery range—the main blockers to owning an electric car—are gradually fading away. For perspective, the share of electric vehicles in new-car sales zoomed from 0.2% a decade ago to 13% in 2022. India, the world’s third-largest automobile market, is at the forefront of this silent revolution, turning the spotlight on some of the leading EV stocks in India.
If you are thinking about investing in EV stocks in India, this might be the right time. Stock market experts says investing in top EV stocks in India holds a bright opportunity for investors to earn profit. In this blog post, we will explore some of the top electric vehicle stocks in India. Let’s dig in.
EV industry in India: A brief overview
Before we unveil the best EV stocks in India for investment, let’s take a quick look at the state of the EV industry in India.
- The automobile sector plays a vital role in the Indian economy, the third largest in global automobile sales. The Indian EV market, valued at $2 billion in 2023, is slated to reach $7.09 billion by 2025, according to estimates. Furthermore, the sector is forecast to clock 10 million in annual sales by 2030.
- The government of India has also launched several initiatives including Faster Adoption and Manufacturing of Electric Vehicles Scheme – II (FAME – II) and Production-Linked Incentive (PLI) Scheme to boost the EV industry’s growth in India. The government also launched the Electric Mobility Promotion Scheme (EMPS) in March 2024 to encourage the purchase of electric two-wheelers and three-wheelers.
- Also, to achieve energy transition and net zero by the year 2070, the Union budget 2023-24 allotted Rs. 35,000 crore in capital investment for the EV industry in India.
Top EV stocks in India in 2024 by market capitalization
If you are planning to invest in EV stocks, you should pick the top EV stocks in India for the best returns. We have listed the top electric vehicle stocks in India by market capitalization that you can consider investing in.
| Sl No. | Top EV Stocks in India | Market Capitalization as of July 2024 |
| 1. | TATA Motors | Rs. 3,63,469 cr |
| 2. | Maruti Suzuki India | Rs. 3,93, 679 cr |
| 3. | Bajaj Auto | Rs. 2,62,007 cr |
| 4. | Mahindra and Mahindra | Rs. 3,42, 039 cr |
| 5. | TVS Motor Company | Rs. 1,14, 276 cr |
Overview of the top EV stocks in India
The current EV stock market has several major players who are driving the industry growth with their latest innovations and collaborations. Let’s learn about the best EV stocks in India in detail as this will help you make a well-informed investment decision.
Mahindra and Mahindra
Mahindra and Mahindra is one of the leading names among the top electric vehicle stocks in India. Starting out as a jeep-maker in 1945, the company transformed itself to an SUV maker when it launched the Scorpio, followed by the popular XUV series. Along with its SUVs, the firm turned its attention to EVs when it acquired Bangalore-based Reva Motors, a pioneer in the Indian electric vehicle segment. Today, it ranks among the prominent EV makers in India.
TATA Motors
Another key player in the EV industry is TATA Motors. It is also one of the best EV sector stocks in current times. The multinational automobile company headquartered in Mumbai offers a diverse range of vehicles including EVs, commercial vehicles, defense vehicles, passenger vehicles, buses, and trucks.
Maruti Suzuki India
When listing out the best EV stocks in India, Maruti Suzuki India cannot be excluded. Maruti Suzuki India Limited was incorporated in 1981 in Gurugram, India. Earlier, the primary focus of the company was to manufacture and sell passenger vehicles. The company has forayed into the EV segment, focusing on producing both hybrids and electric cars for India. Maruti aims to have a range of vehicles that would be 25% hybrid and 15% EV by the year 2030.
TVS Motor Company
TVS Motor Company counts among the top EV stocks in India that you can consider investing in. It is a globally renowned two and three-wheeler manufacturer and seller. Having its headquarters in Chennai, the company functions as a subsidiary of TVS Holdings Ltd. Some of the motorcycle lineups of TVS include TVS Raider, Apache RR 310, Apache Series RTR, TVS Radeon, and more. In May 2024, the company announced the expansion of its EV segment by launching its iQube variants of scooters.
Bajaj Auto
Headquartered in Pune, Bajaj Auto Limited is another EV stock that you can consider investing in. Bajaj Auto offers two-wheelers, three-wheelers as well as quadricycles. The company is popularly known for manufacturing and distributing automobiles, including commercial vehicles, EVs, motorcycles, and more. In June 2024, the company expanded its popular electric scooter portfolio by introducing the Chetak 1901.
Factors to consider before investing in EV stocks in India
Understanding and analyzing factors that impact the EV market is essential before you invest in EV stocks in India. You should consider the scope for growth and sustainability to make better decisions while investing in electric vehicle stocks in India.
Revenue & revenue growth
A company’s market share is indicated by its revenue generation. And revenue growth reflects the increasing market share of a company compared to its competitors. As the EV market is capital-intensive, traders usually prefer EV companies with strong revenue. Also, sustained revenue growth signals that a company has the ability to withstand market volatility and changes.
R&D expenses
The EV industry is constantly evolving, with the introduction of new technologies. Research and Development play a crucial role in the EV market. R&D expenses of a company reflect that it is open to technological changes and will try to remain relevant in the long run. It also indicates that the company will continue to focus on innovation and worthy of your investment.
Production capacity
Large production capacity is crucial for EV companies. It is important for the sustained and long-term growth of a company. Large production capacity shows that an EV company has the ability to fulfil orders on time, and maintain and upscale inventory levels to reach market goals. That is why it is important to consider the production capacity of an EV company before you invest in it.
Distribution Strength
Another important factor that you must consider before investing in EV stocks India is its distribution strength. A company’s distribution strength signals its ability to reach its customers or its customers’ ability to access its service within the shortest time possible. An EV company’s distribution strength across rural and urban areas in a specific region shows its brand visibility, brand value as well as its market share.
Product portfolio
A large portfolio is crucial for the growth of the EV sector. When an EV company has a large portfolio with various models, it can cater to the needs of a wide spectrum of consumers. EV companies with large portfolios are able to attract more customers compared to companies with smaller portfolios. Companies with strong portfolios also comply with various regulatory norms, leading to increased brand value and market share.
Customer Base
Another important factor to consider before investing in the top EV stocks in India is the customer base. A large and loyal customer base indicates brand value, brand loyalty, and market share. The EV industry is highly competitive and a large and loyal customer base shows an EV company’s ability to sustain itself in the long run.
Should you invest in electric vehicle stocks?
Electric vehicle stocks in India have huge potential for growth. However, it is crucial to consider all the risks associated with EV investment before investing in EV stocks in India. Analysts point to increased competition in the industry because of new entrants. Pricing pressures and increased competition can lead to thinner profit margins, impacting stock value. Other factors that can impact the price of the EV sector stocks are product profiles, shifting consumer preferences, and changing regulatory policies.
EV stocks are also susceptible to market volatility caused by macroeconomic trends, supply chain disruptions, and other geopolitical factors. It is crucial to thoroughly research the EV market and top electric vehicle companies before you invest in the top EV stocks in India.
Conclusion
The EV industry is growing rapidly due to favorable market conditions, government policies, rising fuel prices, shifting consumer preferences, and emission concerns. We have discussed the top EV stocks in India that are worth investing in.
