As India is aiming to achieve climate goals, electric vehicles are gaining momentum. The EV market is expected to reach $47.5 billion by 2027 in India. The market is expected to grow at a CAGR of 44% from 2020 to 2027. Looking at this it’s evident that there are huge opportunities for investors who want to tap into the potential of this emerging sector. But before investing in this sector you need to know what factors you should consider before investing and which are the best stocks to invest in.
What is an EV?
An eclectic vehicle is an electricity-powered vehicle. There are two types of electric vehicles: all-electric vehicles which run entirely on electricity and hybrid electric vehicles which operate on electricity and combustible engines with petrol or diesel.
Why is it worth investing in EVs?
The EV sector is still in its infant state in India. Various sectors make the EV sector worth investing in. These are:
Fewer transportation charges for EV
As the prices of petrol and diesel soar to unprecedented levels, EVs offer lower operating costs. By relying on renewable energy sources to power the EVs, they become an attractive option to replace the expensive use of petrol and diesel.
Zero carbon emission
EVs play a vital role in achieving the global objective of cutting down carbon emissions. With renewable energy sources, such as solar charging stations, powering the EVs, they can guarantee zero carbon emission.
Tax Benefits
The EV sector is poised to grow in the future, as the central and state governments provide incentives and tax breaks for buying EVs.
Factors to consider before investing in EV stocks
Look for industry leaders
The auto industry in India has seen significant growth in recent years. It is expected to grow significantly in the coming years. Investors must research which are the trending EV companies in India. Along with this investors should also research competition in the market.
Research about companies fundamentals:
Before choosing a particular company to invest in it is necessary to research about companies fundamentals thoroughly. It gives you information regarding companies’ performance as well as prospects.
Verify government investment activity
The Indian market’s demand-supply equilibrium will likely depend on electric vehicle stocks. Moreover, the central government has been strongly supporting EV initiatives, especially for domestic production. This has led to a substantial increase in the demand for electric vehicles in India.
Balance your portfolio well
It’s essential to have a balanced portfolio to get expected returns. Include stocks from all the well-performing sectors in your portfolio.
Best EV stocks in India in 2023
TATA Motors
TATA Motors is one of the high-profile Indian automobile manufacturers. It was established in 1945 and is now an organization of $37 billion. The company manufactures a wide range of cars, SUVs, buses, trucks, and defense vehicles. TATA Motors has sold 13,35,819 vehicles and has 9200 sales and service points. As of now, TATA Motors has four EVs in the market. These include Harrier, Sierra, Avinya, and Nexon.
Maruti Suzuki
Maruti Suzuki is the Indian subsidiary of Japan’s Suzuki Motor Corporation. Maruti Suzuki has a leading share in the Indian automobile market. Maruti Suzuki is known for its good performance and low maintenance vehicles. These include hatchbacks, SUVs, Sedans, and other commercial medals. Maruti Suzuki also has a significant share in the EV market. EVs manufactured by Maruti Suzuki are the Jimmy EV, Futuro, eVX, and WagonR Electric.
Mahindra and Mahindra
Mahindra and Mahindra started in 1945. It is now one of India’s top car makers. It is based in Mumbai. It has made almost 1.5 million vehicles. It makes SUVs, SUVs, pick-ups, and other vehicles. It also makes EVs like XUV400, Zor Grand, and E Verito.
TVS Motor
TVS Motor Company Limited started in 1978. It is based in Chennai. It is a top maker of 2-wheelers and 3-wheelers. It makes 4.95 million two-wheelers and 120,000 three-wheelers every year. It has four factories in India and Indonesia. It also makes EVs like TVS X and TVS iQube.
Indian Oil Corporation
Indian Oil Corporation started in 1959. It is based in New Delhi. It works for India’s oil and gas ministry. It made $120 billion in 2022. In November 2021, it said it would put EV charging stations at its 10,000 fuel stations in three years. By June 2023, it had the most EV charging stations in India. It had put them at 5,600 fuel stations.
Power Grid Corporation of India Ltd
This is the biggest electric power transmission company in India. It has EV charging stations in seven Indian cities. This large-cap stock has moderate risk and 2.27x volatility than Nifty. Tickertape ‘Scorecard’ gives this EV stock a high profitability score of 9.3/10.
Conclusion
In conclusion, EV is one of the most promising sectors in India. It has the potential to give you your expected returns or maybe more than expected. There are many good stocks to invest in EVs such as TATA Motors, TVS Motors, Maruti Suzuki, Mahindra and Mahindra, and Indian Oil Corporation. If you are thinking about investing in these EV stocks, it’s essential to go through the fundamentals of the company as well as analyze past performances. You should also consider the factors that we have mentioned above before investing in any stock. As the demand for EVs surges, stock market brokers in India are also focusing on emerging trends in the electric vehicle industry.
Frequently asked questions
1. How big is India’s EV sector in 2023?
The rise of electric vehicles has been seen in India in recent years. The sales of EVs have grown by 82% in 2023. The overall sales have increased by 157% from FY2022 to FY2023. Along with this electric two-wheelers market is also seeing exponential growth. In H2 FY2023 over 1 lakh EVs were sold every month.
2. Which EV stock is good to buy in 2023?
There are various good EV stocks India to buy in 2023. These include TATA Motors, TVS, Mahindra and Mahindra, Maruti Suzuki etc.
3. Should I invest in the EV sector in India?
The electronic vehicles sector is still in its early stages in India. But it is growing significantly and it has the potential to grow exponentially in the future. Investing in EVs for the medium or long term is surely a good decision. It is advisable to conduct thorough research before making any investment decision.
4. How is it beneficial to invest in the EV sector in India?
Investing in the EV sector will be beneficial as it has a huge potential to grow in the coming years. The world is increasingly trying to achieve clean energy hence EVs can be the transport for the future. Hence investing in best EV stocks in India will be beneficial for investors.
5. Will EV stocks go up in 2023?
Yes EV stocks are likely to go up in 2023. It’s recommended to be cautious and manage your risks well before investing in any stock.
