Electric vehicle stocks
Electric vehicles (EVs) in India are
playing an essential role in coping with the challenges of air pollution and
greenhouse gas (GHG) emissions. Five out of the ten most polluted cities in the
world are in India.
Despite the challenging fiscal
year 2020, the EV industry posted a 20% rise over 2019 in domestic sales in
India at 156,000 units. In contrast, the internal combustion (IC)
engine-powered vehicle segment registered an approximate decline of 34% against
the same period last year.
In furtherance to that, with the
recent rises in the diesel and petrol prices, the Indian citizens are choosing
an alternative method of mobility to match their budget and extent a helping
hand in protecting the environment.
In this transition phase, the
Indian government has revised the policies to include India, a pioneer in
electric mobility for global technology and vehicle companies. This policy
framework has hugely been designed to usher in electric mobility since it holds
a good promise for economic growth and comfortable living.
India’s push toward electric
vehicles is creating opportunities for companies in ancillary spaces such as
The move toward electric vehicles
is “inevitable” globally and in India, where higher fuel prices can make owning
cars that run on electricity comparatively more affordable.
What to Look for in Electric Vehicle Stocks?
To invest safely in electric
vehicle stocks, look for:
· Companies with a high market reach
· Companies that offer good battery products
that produce durable plastic products
Which Stocks to Watch Out For?
· Motherson Sumi and Exide Industries: You have
the battery manufacturers on one hand that are looking to develop the battery
for the EVs, and on the other side, you have companies who are into the
electrical part of the vehicles.
· Amara Raja Batteries – One of the biggest
battery makers in India is planning to build a Lithium-ion plant in the recent
future and is also working towards promoting the use of electric vehicles.
· Minda Industries – The Indian auto parts maker
is looking for possible EV-compatible systems and is also working on research
to step into the electric vehicle segment.
· Maruti Suzuki : It is the largest carmaker in the
country. It has a strong distribution network, and with a tie-up with Toyota,
they are the best-suited for driving EV sales or EV cars into India.
· Tata Motors and Mahindra & Mahindra both
have electric vehicles that are currently being sold in India.
Boost from Tesla
The EV sector in South Asia’s
largest economy is likely to receive a boost from Tesla.
The U.S. firm last month
incorporated Tesla Motors India and Energy Private Limited with a registered
office in the tech hub of Bengaluru in Karnataka. The news wire Reuters
reported that a state government document claimed Tesla would open an electric
car manufacturing unit in Karnataka.
CEO Elon Musk previously said on
Twitter that Tesla cars would be available in the country starting this year.
For its part, India is attempting
to reduce its dependency on oil and also decrease air pollution. That may spur
the push into electric vehicles. In the latest annual budget, the finance
minister announced a voluntary vehicle scrapping policy to phase out old
vehicles that contribute to poor air quality.