The electric vehicle industry is growing right now, with plenty of room for future expansion. Although the United States and China are the EV frontrunners, many believe India has the potential to become the world's largest EV market. Furthermore, the Indian government has stated that by 2030, it intends to have a 100% electric car adoption rate! That seems like an ambitious goal, but it demonstrates the scope and potential of electric vehicles in Indian markets.
Climate change is one of the main reasons why countries are being obliged to adopt an electric alternative. Not only will this benefit the environment, but it will also benefit India's general economic health. Because the Indian EV business is still in its early phases, there is no clear market leader across all vehicle types. In the two-wheeler segment, there are ten or more large firms, three or four in electric buses, and a few in vehicle manufacture.
Because the battery is the most important component for these cars, this industry will experience great growth in the future. Additionally, industries who create high-quality plastics will benefit. Automobile manufacturers with a larger customer base and market share are expected to benefit from the introduction of electric vehicles in the future.
The transition to electric vehicles is “inevitable” both globally and in India, where higher fuel prices may make owning an electric vehicle more affordable. The majority of the excitement in India's electric vehicle business is in the ancillary spaces, where companies are collaborating with global businesses, many of which are hoping to access the lucrative market.
Following are some of the companies which can be focused on by investors:
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Electric Vehicle (EV) Stocks to Watch 2021
Tata Motors
Tata Motors is one of the India's largest automaker. Its automobile business includes the production of automobiles, utility vehicles, buses, trucks, and military vehicles. Tata's ability to use resources from all over the world has been one of its major advantages. Tata's research and development efforts are focused on developing auto technologies that are both sustainable and appropriate. Tata Motors has its design and research and development centres in India, the United Kingdom, Italy, and Korea.
Tata Motors, in partnership with its UK-based subsidiary, Tata Motors European Technical Centre (TMETC), is aiming to be a major player in India's electric vehicle market. Tata has focused on the Passenger Vehicles and Electric Buses markets in India when it comes to EVs. Tata expects demand from state transportation unions in the electric bus category. In the long run, the expected demand is estimated to be over 400,000 buses.
Amara Raja Batteries
Because the battery is the most important component of electric vehicles, India's second-largest traditional battery manufacturer, Amara Raja, is planning to build a Lithium-ion assembly plant soon. The company is already collaborating with state governments to encourage the usage of electric vehicles. They collaborated with the Delhi government to set up a charging station. Amara Raja launched EV charging stations and battery swapping stations in partnership with Tirupati Municipal Corporation along with a fleet of electric auto-rickshaws as part of the central government’s Smart Cities programme.
Ashok Leyland
Ashok Leyland is one of the India's largest truck manufacturer and one of the world's leading bus manufacturers. Sun Mobility has partnered with the company to help it expand its automotive expertise. To meet the country's e-mobility needs, Ashok Leyland has designed electric variations tailored for Indian circumstances and has also offered battery swapping in electric buses. It has introduced a number of electric bus models, including the Circuit, HYBUS, Electric Euro 6 Truck, and the iBUS. The company's immediate focus, though, is on putting more emphasis on exports.
Conclusion
The electric vehicle technology is evolving at a very rapid rate. The government is also promoting the sale and use of electric vehicles by providing subsidy on the prices. However, before investing in the e-vehicle stocks, it is important to analyse your investment goal and risk appetite. You can get in touch with an investment advisor who will help you in creating a portfolio based on your goals and risk bearing capacities.
Happy Investing!
