Best Top 10 Electric Vehicle Stocks |Trade4Wealth

Electric Vehicle

Introduction :

  • India is focusing on sustainable development while promoting electric vehicles (EVs) to address climate change concerns.
  • The government is supporting the EV industry, creating demand-side incentives, and setting emission targets for 2030.


  • Indian Government’s ‘Make in India’ Initiative: India is striving to become a manufacturing hub for various sectors, particularly electric vehicles (EVs), by promoting local production through the ‘Make in India’ initiative.
  • Projected Growth: Despite being in the early stages, the Indian EV industry is projected to reach 17 million units by 2030, with a significant increase in sales compared to the previous years.
  • Government Initiatives: The Indian government has introduced initiatives like FAME India (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles), PLI (Production-Linked Incentive) schemes for the automotive industry, and incentives for customers to encourage local production of EVs.
  • Foxconn’s Entry: Taiwanese contract manufacturer Foxconn plans to establish a production line for two-wheeler EVs in India, indicating foreign investment and interest in the Indian EV market.
  • Diverse Range of Brands: Several well-known brands like TATA Motors, Mahindra, Hyundai, Ola Electric, Ather Energy, Okinawa, TVS, MG, Hero Electric, and others have ventured into the Indian electric vehicle segment.
  • Investment Influx: Both global and local auto manufacturers are heavily investing in EV production in India, showcasing the industry’s growth potential.
  • Government’s Electrification Commitment: The Indian government is committed to achieving 30% electrification of total mobility by 2030, driving interest from domestic and foreign manufacturers.
  • Policy Framework: India’s encouraging policy framework for local EV production has attracted investments from around the world.
  • Environmental Commitment: India’s commitment to reducing carbon emissions and combating climate change has been a significant driver for the adoption of EVs.
  • Charging Infrastructure Development: The country is actively working on establishing a network of charging stations, making EVs more accessible and convenient for consumers.
  • Renewable Energy Focus: India’s emphasis on renewable energy sources like solar and wind power ensures a sustainable and clean source of electricity for EV charging.
  • Manufacturing Prowess: India’s manufacturing capabilities, expanding market, and EV-friendly policies position it as a promising hub for EV production on a global scale.

Mahindra & Mahindra (M&M)

  • Entered the electric vehicle sector in 2022 with XUV400.
  • Bookings for XUV400 EV started in January 2023.
  • Large-cap stock with a profitability score of 7.1/10 on Scorecard

Tata Power

  • Diverse Energy Portfolio: Tata Power has a diverse energy portfolio, including thermal, hydro, solar, and wind power, making it a significant player in India’s power sector.
  • Renewable Energy Focus: The company is actively expanding its renewable energy capacity and is committed to sustainability, with a growing emphasis on green energy sources.

Exide Industries Ltd

  • Known for manufacturing batteries for regular and electric vehicles.
  • Stepped into EV-specific battery manufacturing.
  • Small-cap stock currently undervalued compared to the market average.

Tata Motors

  • One of the oldest automobile manufacturers in India.
  • Offers 3 different electric vehicles: Tata Nexon EV Prime, Tata Nexon EV Max, and Tata Tigor EV.
  • Market cap of ₹1,68,935.86 crore.

Hero MotoCorp Ltd

  • Leading player in the EV two-wheeler market.
  • Offers 8 EV models: Photon, Optima, NYX, Eddy, Flash, Atria, AE-29, and AE-3.
  • Market cap of ₹49,147.58 crore.

Amara Raja Batteries Ltd

  • Second-largest producer of automotive batteries in India.
  • Plans to construct a Gigafactory with an investment of $800 million to $1 billion for lithium-ion cells.
  • Stock valued at ₹597.35 as of April 24, 2022.

Power Grid Corporation of India Ltd

  • India’s largest Electric Power Transmission Utility.
  • Operates EV charging stations in 7 different Indian cities.
  • Low-risk large-cap stock with a volatility of 1.64x compared to Nifty.

Olectra Greentech Ltd

  • Subsidiary of Megha Engineering and Infrastructures Ltd.
  • Stock valued at ₹673, with 2.49% growth since the previous year.
  • Specializes in electric bus manufacturing with energy-saving features.

Tata Chemicals Ltd

  • Provides crucial components to electric vehicle companies.
  • Projected return of 20.44% exceeds the 3-year CAGR of 17.46%.
  • Expected earnings growth for the next year is 72.24%.

Motherson Sumi Systems Ltd

  • One of India’s largest auto parts manufacturers.
  • Expanding into parts required for electric vehicles.
  • 5-year CAGR growth of 14.01% and a profitability score of 7.6/10 on ‘Scorecard’.
Electric Vehicle

Electric Vehicle Battery Significance:

  • EV batteries are crucial, accounting for 30-40% of an EV’s cost.
  • They impact driving range, ownership costs, and performance, driving EV adoption.

Global EV Battery Market:

  • The global EV battery market is expected to grow by USD 53,626.86 million between 2022 and 2027, with a CAGR of 19.57%.
  • Factors contributing to this growth include expanding EV applications, consumer demand, automotive industry transition to EVs, and technological advancements.

China’s Dominance in EV Batteries:

  • China controls about 75% of the world’s EV battery manufacturing capacity.
  • Many Western automakers, including Tesla and General Motors, source batteries from Chinese companies like CATL.

India’s EV Initiative:

  • India aims to become a manufacturing hub for EVs under the ‘Make in India’ initiative.
  • Promoting EVs powered by sustainable energy sources is seen as a solution to reduce air pollution and greenhouse gas emissions in India.

Global EV Battery Sales (2021):

  • Global EV battery sales exceeded 6.5 million units in 2021, indicating substantial growth compared to 2020.
Electric Vehicle

Investment Opportunities in EV Battery Stocks:

Investment Rationale:

  • EV adoption in India is on the rise.
  • Key to acceleration is a comprehensive ecosystem approach.
  • Batteries are a critical component.
  • India needs investments in high-performing, affordable batteries.
  • Opportunity for India to become a global EV market leader.


  • Assess suitability for the chosen mutual fund.
  • Thorough research on EV battery manufacturers.
  • Evaluate the performance of the mutual fund schemes.


  • EV battery stocks offer compelling growth potential.
  • Diversified options in mutual funds for exposure.
  • Careful consideration and research are essential for investors.

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The information provided in this blog post is for educational and informational purposes only. It should not be construed as financial advice or a recommendation to buy or sell any securities. Always do your own research and consult with a qualified financial advisor before making investment decisions

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