EV Stocks in India for 2024: Invest in the Future of Mobility

By ankita bose Dec 23, 2024, 15:07 IST

The electric vehicle (EV) revolution is transforming the global automotive industry, and India is no exception. With a focus on sustainability, government incentives, and a burgeoning consumer base, the EV market in India is poised for exponential growth. For investors, this presents an opportunity to tap into the future of mobility by investing in EV stocks in India. Whether you're a seasoned investor or just starting, understanding the EV landscape and exploring options, including stocks under 50, can help you build a robust investment portfolio.

Why Invest in EV Stocks in India?

1. Government Support for EVs

India's government has rolled out several initiatives to accelerate EV adoption. Policies like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme and production-linked incentives (PLI) for battery manufacturing and EV components are boosting the sector. These measures are creating a favourable ecosystem for EV companies to thrive, making their stocks a compelling investment.

2. Rising Consumer Demand

Increasing awareness of environmental issues and the rising cost of petrol and diesel are encouraging Indian consumers to shift to electric vehicles. Additionally, improvements in EV infrastructure, such as charging stations and battery efficiency, are reducing barriers for adoption.

3. Global and Domestic Market Trends

Global EV market leaders like Tesla have inspired a surge in EV manufacturing. Domestically, Indian companies are gearing up to compete with innovative offerings. With a growing number of players entering the EV space, the sector’s growth potential is enormous, offering investors diversified options.

Top EV Stocks in India for 2024

1. Tata Motors

Tata Motors is a leading player in India’s EV space, with its Nexon EV and Tigor EV models gaining significant traction. The company is investing heavily in EV research and development while expanding its production capacity. With a robust product pipeline, Tata Motors remains a frontrunner in the EV market.

  • Stock Price: ₶400+ (as of December 2024)
  • Why Invest: Leadership in the EV segment, strong market presence, and continuous innovation.

2. Mahindra & Mahindra

Mahindra & Mahindra (M&M) has a promising line-up of electric SUVs and three-wheelers. Its EV subsidiary, Mahindra Electric, is working on cutting-edge technology to cater to both domestic and export markets. The company’s strategic focus on sustainability positions it as a strong contender in the EV space.

  • Stock Price: ₶1200+ (as of December 2024)
  • Why Invest: Strong legacy in automotive manufacturing and aggressive EV expansion.

3. Hero MotoCorp

Hero MotoCorp, the world’s largest two-wheeler manufacturer, has entered the EV space with its electric scooters under the Vida brand. The company’s vast distribution network gives it a competitive advantage in scaling its EV offerings across India.

  • Stock Price: ₶2000+ (as of December 2024)
  • Why Invest: Dominance in the two-wheeler segment and a promising EV portfolio.

4. Bajaj Auto

Bajaj Auto is making strides in the EV sector with its Chetak electric scooter. Known for its engineering excellence and brand loyalty, Bajaj Auto is well-positioned to capture a significant share of the EV market, especially in urban areas.

  • Stock Price: ₶4500+ (as of December 2024)
  • Why Invest: Proven track record in two-wheelers and focus on premium EV products.

5. TVS Motor Company

TVS Motor Company has successfully launched its iQube electric scooter, which has received a positive response. With aggressive plans to expand its EV portfolio, TVS is becoming a key player in India’s EV market.

  • Stock Price: ₶500+ (as of December 2024)
  • Why Invest: Continuous innovation and a growing EV presence.

Promising EV Stocks Under 50

For investors looking for affordable entry points, here are some stocks under 50 that have exposure to the EV ecosystem:

1. Indian Metals & Ferro Alloys Ltd (IMFA)

IMFA is a leading producer of ferroalloys, which are essential in EV battery production. With the rising demand for EVs, the company’s products are crucial to the supply chain.

  • Stock Price: ₶45 (as of December 2024)
  • Why Invest: Exposure to the growing EV battery market.

2. Tata Power

Tata Power is not only a leader in renewable energy but also a pioneer in setting up EV charging stations across India. The company’s EV charging infrastructure is integral to India’s EV adoption journey.

  • Stock Price: ₶49 (as of December 2024)
  • Why Invest: Strategic focus on EV charging infrastructure and green energy.

3. SML Isuzu

SML Isuzu, a commercial vehicle manufacturer, is developing electric buses and trucks. With the government’s push for electrifying public transport, the company is expected to benefit significantly.

  • Stock Price: ₶48 (as of December 2024)
  • Why Invest: Niche focus on commercial EVs and growth potential.

4. Himadri Speciality Chemical Ltd

Himadri is a key supplier of advanced carbon materials used in EV batteries. As the EV battery market grows, the company’s products will see increasing demand.

  • Stock Price: ₶46 (as of December 2024)
  • Why Invest: Strong alignment with the EV battery supply chain.

5. Ashok Leyland

Ashok Leyland has ventured into electric buses and trucks. Its focus on commercial EVs aligns with India’s goals to electrify public and freight transport.

  • Stock Price: ₶50 (as of December 2024)
  • Why Invest: Leadership in the commercial vehicle space and robust EV plans.

Key Factors to Consider When Investing in EV Stocks

  1. Government Policies: Monitor changes in EV-related policies, including subsidies and tax benefits, as they can significantly impact stock performance.
  2. Market Position: Invest in companies with a strong presence or leadership in the EV ecosystem.
  3. Innovation and R&D: Companies investing in cutting-edge EV technology are more likely to succeed in the long run.
  4. Infrastructure Support: Firms with a focus on charging infrastructure and battery solutions have a competitive edge.
  5. Affordability: For cost-conscious investors, consider stocks under 50 that offer high growth potential with minimal capital outlay.

Conclusion

The EV revolution is reshaping India’s automotive landscape, presenting a wealth of opportunities for investors. From established giants like Tata Motors and Mahindra & Mahindra to affordable stocks under 50 like Tata Power and Himadri Speciality Chemical, there’s a wide spectrum of options to consider. By aligning your investments with the trends and innovations in the EV sector, you can contribute to a sustainable future while achieving significant returns. As 2024 unfolds, staying informed and strategic will be key to capitalising on the potential of EV stocks in India.

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