The Electric Vehicle (EV) market in India is rapidly evolving and has become a multifaceted sector influenced by the diverse demands of various key stakeholders. The size of the electric vehicle market in India was USD 1.45 billion in 2021. It is anticipated to expand significantly, reaching USD 113.99 billion by 2029, reflecting a remarkable CAGR of 66.52%. In this article, we will delve into the Best Electric Vehicle stocks in India.
India’s EV sector encompasses electric two-wheelers (E2Ws), electric three-wheelers (E3Ws), electric four-wheelers (E4Ws), and electric buses (E-Bus). As the population continues to grow, environmental concerns mount and fuel prices rise, there is a growing demand for cost-effective and sustainable transportation solutions, with E2Ws emerging as the most fitting choice.
India holds the distinction of being the world’s largest manufacturer of electric two-wheelers (E2Ws) and electric three-wheelers (E3Ws). The Indian government has been actively promoting the adoption of electric vehicles (EVs) through a range of policy incentives, which include subsidies, tax benefits, and the establishment of charging infrastructure.
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The Indian automobile industry currently holds the fifth position on a global scale, and it’s on track to advance to the third spot by 2030. This shift is primarily driven by the surging demand for electric vehicles, a trend accentuated by the growing population. India’s substantial reliance on traditional energy resources, particularly as it imports nearly 80% of its crude oil, is no longer a sustainable choice.
Additionally, NITI Aayog has set a bold target of achieving a 70% penetration rate for electric vehicles (EVs) across all vehicle types by 2030, with the ultimate goal of achieving net-zero carbon emissions by 2070. According to data from the Ministry of Heavy Industries, approximately 0.52 million EVs have been registered in India over the past three years, signaling a significant shift towards electric mobility.
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What is the Electric Vehicle (EV)?
An electric vehicle is an automobile that utilizes one or more electric motors in place of an internal combustion engine, which generates power through the combustion of gas and fuel. These vehicles are designed for the transportation of goods and passengers between various locations. They operate using the energy stored within batteries and are recharged through self-charging mechanisms, such as turbochargers and regenerative braking systems, which can convert kinetic energy into electrical power.
EVs are known for their cost-effectiveness in daily operations, minimal noise production, and reduced maintenance requirements compared to gas-powered vehicles. Moreover, they produce no tailpipe emissions, thus contributing to the reduction of air pollution and greenhouse gas (GHG) emissions. Therefore, investing in the best electric vehicle stocks in India presents promising growth prospects.
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Top EV Stocks in India
Let’s take a closer look at the leading electric vehicle related stocks in India, ranked by their 1 Year Return (%), Price to Sale, and ROCE (%):
| Name | 1Yr return (%) | Price/Sales | ROCE (%) | Profit/Loss (%) |
|---|---|---|---|---|
| Amara Raja Batteries | 42.50 | 1.33 | 20.23 | 24.39 |
| Himadri Speciality Chemical | 303.44 | 4.25 | 13.71 | 26.44 |
| Hero MotoCorp | 45.50 | 2.30 | 22.72 | 45.50 |
| High Energy Batteries (India) | 71.93 | 5.11 | 37.34 | -13.17 |
| TATA Motors | 107.05 | 0.72 | 5.95 | 50.73 |
| TVS Motor Company | 93.20 | 2.76 | 13.19 | 34.28 |
| Motherson Sumi Systems | 19.15 | 3.80 | 43.82 | 10.00 |
| Hindustan Copper | 144.43 | 13.86 | 18.04 | 93.05 |
| Olectra Greentech | 192.02 | 10.73 | 13.29 | 62.85 |
| Exide Industries | 84.61 | 1.75 | 10.24 | 18.97 |
| JBM Auto | 217.85 | 5.38 | 11.75 | 45.62 |
| Mahindra & Mahindra | 29.81 | 1.53 | 12.69 | 26.12 |
| Ashok Leyland | 21.46 | 1.17 | 11.43 | -0.08 |
| Sona BLW Precision Forgings | 54.99 | 12.76 | 22.05 | 21.35 |
| Kabra Extrusion Technik | -12.28 | 2.1 | 15.12 | -26.78 |
| Greaves Cotton | 16.99 | 1.36 | 9.09 | 2.20 |
| Graphite India | 44.25 | 3.42 | 7.2 | 29.57 |
Profit/Loss is updated in real-time on the basis of prices on 16 October 2023
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#1 Amara Raja Batteries – Among the Best EV Stocks in India
Started in 1985, Amara Raja Batteries is an Indian company that specializes in the manufacturing of lead-acid batteries. The company is based in Tirupati, Andhra Pradesh, and is a prominent player in the automotive and industrial battery sectors. Amara Raja Batteries is known for producing a wide range of batteries, including those used in automobiles, motorcycles, Uninterruptible Power Supply (UPS) systems, and other industrial applications.
Its Industrial Battery Division comprises brands, such as Power Stack, Amaron Volt, Amaron Sleek, Amaron Volt, Amaron Brute, and Amaron Quanta. Its products are exported to various countries in the Indian Ocean Rim.
1 Year returns: 42.50%
#2 Himadri Speciality Chemical – Among the Best EV based Stocks in India
Himadri Speciality Chemical is primarily engaged in the manufacturing of carbon materials and chemicals. Himadri has developed both natural and synthetic varieties of anode material for Li-ion Batteries. Li-ion batteries are used in Consumer Electronic devices like Mobiles, Electric Vehicles, and Energy Storage Systems (ESS). In May 2023, Himadri acquired nearly 13% equity in Australia-based Sicona Battery Technologies which specializes in high-capacity silicon anode technology.
1 Year returns: 303.44%
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#3 Hero MotoCorp – Black Horse Among EV-based Stocks in India
Hero MotoCorp is known as the leading manufacturer of traditional motorcycles and thus, may appear a misfit in this list of top EV stocks in India. However, there is more to Hero Moto than being the world’s largest internal combustion engine two-wheeler manufacturer. The company was one of the early backers of leading EV maker Ather Energy and holds a 38% equity stake in it. Hero Moto has also launched its own EV brand named VIDA.
Beyond these direct steps, Hero MotoCorp has worked towards developing a supporting infrastructure for EVs and has tied up with Gogoro and BPCL to address range anxiety.
1 Year returns: 45.50%
#4 High Energy Batteries – Beyond Automobiles
Incorporated in 1979, High Energy Batteries (India) is an established manufacturer of Hi-Tech batteries for use in the Army, Navy, Airforce, Satellite Launch Vehicles, and commercial batteries for Auto and Standby VRLA applications. The company also exports products to various countries.
The company manufactures Aircraft Batteries, Torpedo Batteries, Missiles, and Helicopter Batteries for the Defence sector, Car batteries and Truck batteries for the automotive sector, and VRLA Batteries among others.
1 Year returns: 71.93%
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#5 TATA Motors
Tata Motors is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra. It is a part of the Tata Group, which ranks among India’s largest business conglomerates. Tata Motors is renowned for its expertise in manufacturing a diverse range of vehicles, which includes cars, SUVs, trucks, buses, and defense vehicles.
It has been actively engaged in the research, development, and production of EVs. The company has been a trailblazer in the Indian EV market, pioneering the launch of the first fully-electric vehicle in India back in 2010, known as the Tata Indica EV.
Tata Motors has further solidified its commitment to electric mobility by collaborating with other companies to establish essential EV infrastructure and support systems. This includes the development of charging stations and battery-swapping technologies, all aimed at fostering and promoting the adoption of electric vehicles in India.
1 Year returns: 107.05%
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#6 Exide Industries
Founded in 1947, Exide Industries is primarily involved in the production of storage batteries and related products in India. The company specializes in the manufacturing of batteries for various segments within the automotive sector, including 2-wheelers, 4-wheelers, 3-wheelers, E-rickshaws, and H-UPS.
The company is presently in the process of establishing the initial lithium-ion battery cell manufacturing facility in India. Given that lithium plays a central role in the realm of EVs, Exide Industries holds the potential to emerge as a profitable EV stock.
1 Year returns: 84.61%
#7 JBM Auto
Established in 1983, JBM Auto Limited is a leading manufacturer of key auto systems with a growing presence in the e-mobility space. Its dynamically evolving portfolio of revolutionary, future-ready products, comprises auto systems, high-level assemblies, EVs, and buses. The company is continuously leveraging its core strengths, led by strong R&D and innovation capabilities, to pursue excellence through the application of alternative materials and technologies.
1 Year returns: 217.85%
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#8 TVS Motor Company
ROCE: 13.19%
1 Year returns: 93.20%
#9 Kabra Extrusion Technik
ROCE: 15.12%
1 Year returns: -12.28%
#10 Mahindra & Mahindra
ROCE: 12.69%
1 Year returns: 29.81%
#11 Motherson Sumi Systems
ROCE: 43.82%
1 Year returns: 19.15%
#12 Hindustan Copper
ROCE: 18.04%
1 Year returns: 144.43%
#13 Olectra Greentech
ROCE: 13.29%
1 Year returns: 192.02%
#14 Ashok Leyland
ROCE: 11.43%
1 Year returns: 21.46%
#15 Sona BLW Precision Forgings
ROCE: 22.05%
1 Year returns: 54.99%
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FAQs on Electric Vehicle Related Stocks in India
What is an Electric Vehicle (EV) and how is it reshaping industries?
For corporations, electric vehicles present significant cost savings prospects. EVs may cost more upfront than their gasoline-powered competitors, but they save a lot of money over time. Because there are fewer moving parts and no need for oil changes, EVs demand less upkeep and operating costs.
Which are the Best Electric Vehicle Stocks in India?
Top EV stocks in India include Amara Raja Batteries, Himadri Speciality Chemical, Hero MotoCorp, High Energy Batteries, and TATA Motors.
What is the future of EVs in India?
Propelling electric vehicles for the future is a dream that is gradually taking shape not just globally, but also in India. The Economic Survey 2022 predicts that India’s EV market will grow with a CAGR of 66.52% between 2022 and 2029.
