Investing in new technologies may be beneficial if the investors foresee the uses and advantages of technology in future. Investment in the companies working in the field of useful technologies which are at the development stage at present may be a great wealth creator as the investors may find the stocks of these companies at discounted price if they invest in these stocks today. In the future, with the increasing use of the technology, there are good chances that the company will grow and subsequently the stock prices of the company will also rise. But the important point to note is that the technology chosen for investment should be useful for mankind and that there are chances that it may be used widely in future. Electric Vehicles (EV) is such a technology which is very useful for the mankind as it can reduce the dependence on traditional fuel such as oil and diesel and has a potential to grow tremendously in future. In this blog post, we will discuss about some best EV stocks to invest in India in 2013.
EV Industry Opportunities Worldwide
Experts see many opportunities in the EV industry in the near future as the world is on the cusp of an EV revolution. It is expected that the worldwide EV proportion will increase from 3% in 2015 to 23% in 2015. If you see top automobile manufactures, then you will find that all over the world, the top automobile companies are keen to develop EV technology and are introducing EV vehicles in the market. Rolls Royce is also developing an electric version of the Phantom called the Silent Shadow. In India also, top automobile companies like TATA motors, Mahindra and Mahindra, Hyundai, MG, Ola Electric, TVS, etc. have introduced electric vehicles and they are investing heavily in the EV technology. Not only electric vehicles, but hybrid vehicles (which can run both on fossil fuel as well as electricity) are being introduced in the market by many companies.
Challenges in the EV Industry
Apart from the opportunities, EV industry faces certain challenges also. The biggest challenge, this industry faces is of mileage. The batteries used in the EV vehicles does not last very long and on an average, they give mileage of approx. 250-300 km range which is not suitable for very long journey. Apart from this, the high cost of vehicles and battery exchange does not make it preferable for everyone. Certain other challenges like lake of charging infrastructure, lack of service centers, lack of awareness about maintenance and servicing, unclear policies, supply chain issues are also associated with this industry.
TVS Motors Company Lt.
Market Cap: ₹49,200 Cr.
Current Share Price (as on Feb 04, 2023): ₹1035.60
Growth/decline in the stock price during last year: 58.59% growth
TVS is one of the prominent EV vehicle manufacturer in India. TVS realized the potential of this industry very early and launched the iCube electric scooter in 2020. Analysts believe that TVS Motor Company is expected to sell over 1,00,000 E2Ws in FY22-23, which can go up to 1,50,000 units in FY24.
Best EV Stocks to Invest
TATA Motors Ltd.
Market Cap: ₹1.47 Lakh Cr.
Current Share Price (as on Feb 04, 2023):
Growth/decline in the stock price during last year: 6.8% fall
TATA Motors Ltd. is the largest Indian automobile company and it already has grabbed substantial market share in every segment ranging from cars, buses, trucks and defense vehicles too. TATA Motors manufactures EV versions of its traditional brands, Nexon, Tigor, Nano, Tiago along with electric buses. It is also important to note that TATA motors has heavily invested in electric charging stations. Its partner companies, TATA ELXSI (software), TATA Steel (for body) and TATA Chemicals (for the battery) definitely makes it an unbeatable player in the EV segment.
Indian Oil Corporation Ltd.
Market Cap: ₹1,10,922 Cr.
Current Share Price (as on Feb 04, 2023): ₹78.50
Growth/decline in the stock price during last year: 5.6% fall
Indian Oil Corporation Lt. is an Indian oil-based company, with segments includes petrochemicals, petroleum products, etc. Its other businesses are gas, oil and gas exploration, explosives and cryogenic business, windmills, and solar power generation.
The main advantage of this company to grow in the EV sector is that is has a network of fuel stations, bulk storage terminals, inland depots, aviation fuel stations, liquefied petroleum gas (LPG) bottling plants, and lube blending plants. The company has established approximately 257 electric vehicle (EV) charging stations and 29 battery swapping stations at its energy pumps across the country. Along with this, it also owns and operates about nine refineries across India.
Mahindra and Mahindra Ltd.
Market Cap: ₹1,72,555 Cr.
Current Share Price (as on Feb 04, 2023): ₹1388.00
Growth in the stock price during last year: 38.62% increase
Mahindra and Mahindra is one of the top automobile companies in India. It manufactures vehicles for various segments ranging from small cars, SUVs and tractors also. M&M has introduced several EVs such as eVerito, eSupro, Treo, eAlfa Mini, e20Plus. It had also built India’s first electric car, the Mahindra Reva. The company is now the market leader in the electric three-wheeler segment with a 7.9 per cent market share. The company sold 1000 electric vehicles in March 2021, and by March 2022, the number was doubled. In November 2022, the company sold 4000 vehicles, which shows that along with industry, the market share of the company is also growing.
Hero Motocorp Ltd.
Market Cap: ₹52,875 Cr.
Current Share Price (as on Feb 04, 2023):
Growth/decline in the stock price during last year: 8.47% fall
The flagship product of company in EV segment is electric scooter ‘Vida’. The company is already a market leader in two wheelers and it is expected that it will gain substantial market share in the EV segment also.
Along with the companies described above, there are some other good companies which are playing an important role in EV industry. These companies are not EV vehicle manufactures but they are associated with this industry in some other way, such as manufacturing batteries, charging infrastructure, manufacturing other components of EV vehicles, etc.
Some of such companies are Exide, Amara Raja, Tata Chemicals, Tata Power Co. Ltd. and Power Grid Corporation of India Ltd. which are going to play crucial role in the development of infrastructure such as charging stations of EVs in the coming years. You can also consider investing these stocks if you are planning to add good EV stocks in your portfolio.
Conclusion
EV is the technology of future and people are already preferring to use it. With the advancement in EV technology such as AI, batteries, charging infrastructure, etc. this sector will definitely grow tremendously. The EV stocks has a potential to create wealth in coming years. Therefore the investors can definitely charge their portfolio with some good EV stocks with a long term vision.
