Are you ready to ride the wave of the electric vehicle revolution in India? With a surge in awareness towards sustainable transportation and an ever-growing market, now is the perfect time to invest in EV stocks. But with so many options available, how do you choose which ones are best for long-term growth?
In this blog post, we’ve done the research for you and compiled a list of the top EV company stocks that are poised to dominate the Indian market in 2023. So sit back, buckle up, and let’s explore this electrifying investment opportunity together!
Introduction to the EV Market in India
Electric vehicles (EVs) are slowly but surely gaining momentum in India. The EV market in India is expected to reach Rs 2.5 lakh crore by 2030. With the government’s focus on reducing air pollution and promoting electric mobility, the EV market is expected to grow at a compound annual growth rate (CAGR) of 32% between 2023 and 2030.
Charging infrastructure is also being developed rapidly in India. The government is working on setting up a nationwide network of charging stations. In addition, private companies are also investing in setting up charging infrastructure across the country.
Here is the list of Top 10 EV Stocks For Long Term Growth 2023
Electric vehicles are the future. The time to invest in them is now. With that in mind, here are the top 10 best EV company stocks for long-term investment in India:
- Tata Motors – This Indian multinational automotive manufacturing company is headquartered in Mumbai. In 2017, it was the largest manufacturer of commercial vehicles in India. It’s also the 17th largest manufacturer of buses and trucks globally. And it’s getting into the electric vehicle game with its new Tigor EV. The company has a market cap of $8.4 billion and a price-to-earnings ratio of 18.6.
- Ashok Leyland – This Indian multinational automotive manufacturing company is based in Chennai and is part of the Hinduja Group. It’s the second largest manufacturer of commercial vehicles in India and has a market cap of $3 billion and a price-to-earnings ratio of 15.5. The company recently launched its first electric bus, the Circuit, which can seat up to 72 passengers.
- Mahindra & Mahindra – This conglomerate is based in Mumbai and has interests in various sectors, including automotive, information technology, finance, real estate, and more. In 2010, it acquired a majority stake in South Korean car company Ssangyong Motor Company. It has a market cap of $16 billion and a price-to-earnings ratio of 19.4. The company offers several electric vehicles, including the e2O Plus, e-Verito, and the KUV100 Electric.
- Maruti Suzuki India – This is a subsidiary of the Japanese car manufacturer Suzuki Motor Corporation and is headquartered in New Delhi. It’s the largest carmaker in India with a market share of 53%. It has a market cap of $19 billion and a price-to-earnings ratio of 24. The company recently launched its first electric vehicle, the Maruti Suzuki Wagon R EV.
- Hero MotoCorp – This Indian multinational corporation is based in New Delhi and is the world’s largest manufacturer of motorcycles and scooters. It has a market cap of $14 billion and a price-to-earnings ratio of 18. In 2017, it acquired a stake in Ather Energy to develop electric two-wheelers for the Indian market.
- TVS Motors – This two wheeler manufacturer based in Chennai has been around since 1978 and has seen tremendous growth over the years. It has a market cap of $1 billion and a price-to-earnings ratio of 31.2. The company recently launched its first electric scooter, the Creon, which has a range of 85 km.
- Bajaj Auto – This Indian auto manufacturer is based in Pune and is the world’s fourth largest two-wheeler manufacturer. It has a market cap of $14 billion and a price-to-earnings ratio of 26. The company recently launched its first electric scooter, the Urbanite Chetak, which has a range of 95 km.
- Amara Raja Batteries – This Indian battery manufacturing company is based in Hyderabad and is the country’s largest producer of lead acid batteries for automotive applications. It has a market cap of $3 billion and a price-to-earnings ratio of 19.1. The company provides batteries to several electric vehicles manufacturers in India, including Tata Motors and Mahindra & Mahindra.
- Eicher Motors – This manufacturer based in New Delhi manufactures commercial vehicles as well as motorcycles under its Royal Enfield brand name. It has a market cap of $13 billion and a price-to-earnings ratio of 30.5. The company recently launched its first electric motorcycle, the Royal Enfield KX Concept, which has an estimated range of 100 km.
- Exide Industries – This Indian battery manufacturing company is based in Kolkata and is the largest manufacturer of lead acid batteries in India. It has a market cap of $6 billion and a price-to-earnings ratio of 28. The company provides batteries to several electric vehicles manufacturers, including Mahindra & Mahindra and Tata Motors.
Advantages of Investing in EV Stocks
Electric vehicles (EVs) are revolutionising the automotive industry. Not only are they more environmentally-friendly than petrol or diesel cars, but they’re also cheaper to operate and maintain.
There are several advantages to investing in EV stocks. Here are a few of the most notable:
- Growth potential: The EV market is still in its early stages of development, and it is expected to grow rapidly in the coming years. This growth potential could lead to significant gains for investors who invest in EV stocks early on.
- Government support: Governments around the world are providing financial incentives and other support for the development and adoption of EVs. This support could help to boost the growth of the EV market and create new investment opportunities.
- Technological innovation: The EV market is constantly evolving, with new technologies being developed all the time. This technological innovation could lead to new and improved EV products, which could drive demand and boost stock prices.
- Sustainability: EVs are considered to be more sustainable than traditional gasoline-powered vehicles. This could appeal to investors who are looking to invest in companies that are aligned with their environmental values.
Risks Involved in Investing in EV Stocks
Electric vehicles are still a relatively new technology, and as with any new technology there are risks involved in investing in EV stocks. Here are some of the potential risks to keep in mind:
- Technology Risk – EVs rely on battery technology that is still evolving. There is a risk that the batteries used in EVs may become obsolete as newer, more efficient technologies are developed.
- Infrastructure Risk – EVs require a reliable and robust infrastructure in order to be practical for everyday use. This includes things like charging stations and battery swapping facilities. If the infrastructure is not in place, it could limit the growth of the EV market and negatively impact investments in EV stocks.
- Policy Risk – Government policies can have a big impact on the EV market. For example, subsidies or tax incentives can make EVs more attractive to consumers and help boost sales. Conversely, government regulations or restrictions could make it difficult for EVs to compete with traditional gasoline-powered vehicles.
- Market Risk – The EV market is still relatively small and there is no guarantee that it will continue to grow at the current rate. If the market does not pick up as expected, investments in EV stocks could suffer.
By considering these factors, you can narrow down your options and choose the best EV stock for your portfolio.
Conclusion
Investing in the right EV company stocks is a great way to get exposure to this exciting sector. With these tips in mind, investors should be able to research and invest with confidence in India’s electric vehicle market for long-term returns. We hope that by providing you with information about the best EV companies out there, you’ll have an easier time picking out your ideal stock investments. Good luck!