Best EV Stocks in India 2024 - Top Electric Vehicle Shares to Watch (2024)

Amidst rising environmental concerns, India, the third-largest auto market globally, is on an ambitious drive to push EV adoption. The Indian government views electric mobility as a key tool to reduce emissions and improve air quality with its ambitious 30% EV penetration target by 2030. As a result, the electric vehicles market in India has witnessed growth in recent times. Moreover, with favourable policies, such as the Electric Mobility Promotion Scheme (EMPS) 2024 scheme in place, the electric vehicle shares in India received a huge boost. In this blog, we will understand more about the best electric vehicle stocks in India, the features of the best EV stocks, and how to invest in them.

Top 10 EV Companies in India Based on 1-Yr Return

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data in this list of EV stocks to buy, including the EV share prices, is from 2nd September 2024. This data is derived from Tickertape Stock Screener.

🚀 Pro Tip: Utilise Tickertape’s Stock Screener to screen the list of top stocks amongst 5,000+ available stocks using 200+ filters.

Overview of the Best Electric Vehicle Stocks in India (2024)

Let’s have a look at the best electric vehicle stocks India down below:

Amara Raja Energy & Mobility Ltd, founded in 1985, operates in the battery manufacturing sector and is part of the Amara Raja Group. The company is known for producing automotive and industrial batteries under the brand names Amaron and PowerZone. It is a leading player in energy storage solutions, electric mobility, and other energy-related sectors.

The company has a market capitalisation of Rs. 27,524.27 cr., with a close price of Rs. 1,503.85. The price-to-earnings (PE) ratio stands at 29.46, and the stock has delivered a 1-yr return of 140.67%.

Himadri Speciality Chemical Ltd

Established in 1987, Himadri Speciality Chemical Ltd is a leading manufacturer of carbon materials and chemicals derived from coal tar. The company is involved in producing carbon black, advanced carbon materials, and specialty chemicals used in various industrial applications.

Himadri Speciality Chemical Ltd has a market capitalisation of Rs. 25,772.02 cr. The stock’s closing price is Rs. 522.10, with a PE ratio of 62.74. The stock has provided a 1-yr return of 106.40%.

Vedanta Ltd

Founded in 1979, Vedanta Ltd is a diversified natural resources company engaged in exploring, extracting, and processing minerals like zinc, lead, silver, iron ore, aluminium, copper, and oil & gas. The company is a significant player in the metals and mining industry, with operations across India and abroad.

Vedanta Ltd has a market cap of Rs. 1,80,843.72 cr., with a closing price of Rs. 463.25. The PE ratio is 42.66, and the company has recorded a 1-yr return of 93.81%.

Hero MotoCorp Ltd

Hero MotoCorp Ltd, established in 1984, is one of the world’s largest manufacturers of motorcycles and scooters. The company is renowned for its wide range of two-wheelers, focusing on fuel efficiency, affordability, and a robust service network.

Hero MotoCorp has a market capitalisation of Rs. 1,11,552.91 cr. Its closing price is Rs. 5,578.20, with a PE ratio of 29.79. The stock has generated a 1-yr return of 89.55%.

Hindustan Copper Ltd

Incorporated in 1967, Hindustan Copper Ltd is a public sector enterprise under the Ministry of Mines, Government of India. The company is involved in the mining, beneficiation, and smelting of copper and copper products, making it the sole vertically integrated copper producer in India.

Hindustan Copper Ltd has a market cap of Rs. 31,007.63 cr., a closing price of Rs. 320.65, and a PE ratio of 105.00. The stock has returned 86.91% over the past year.

Exide Industries Ltd

Exide Industries Ltd, founded in 1947, is a prominent player in the battery manufacturing industry, providing a wide range of batteries for automotive, industrial, and submarine applications. The company also focuses on renewable energy storage solutions and is a key supplier to major automotive manufacturers.

Exide Industries Ltd has a market capitalisation of Rs. 41,692.50 cr. Its closing price is Rs. 490.50, with a PE ratio of 47.56, and it has provided a 1-yr return of 79.80%.

Tata Motors Ltd

Tata Motors Ltd, established in 1945, is a global automobile manufacturer offering a wide range of cars, utility vehicles, buses, trucks, and defence vehicles. It is one of India’s leading automobile companies and is known for its innovation and sustainability focus, particularly in electric vehicles (EVs).

Tata Motors Ltd has a market capitalisation of Rs. 4,02,191.80 cr., with a closing price of Rs. 1,092.65. The PE ratio stands at 12.81, and the stock has achieved a 1-yr return of 79.42%.

Mahindra and Mahindra Ltd

Founded in 1945, Mahindra and Mahindra Ltd is one of the largest automobile manufacturers in India, known for its SUVs, commercial vehicles, and tractors. The company has a significant presence in the agribusiness, IT, and financial services sectors.

Mahindra and Mahindra Ltd has a market capitalisation of Rs. 3,32,748.02 cr. The stock’s closing price is Rs. 2,777.00, with a PE ratio of 29.53, and it has delivered a 1-yr return of 76.16%.

Servotech Power Systems Ltd

Servotech Power Systems Ltd, established in 2004, operates in the electrical components and equipment sector, manufacturing and providing solutions for solar energy, LED lighting, EV chargers, and backup power systems. The company is known for its focus on renewable energy and sustainable technologies.

Servotech Power Systems Ltd has a market capitalisation of Rs. 3,162.79 cr. Its closing price is Rs. 141.89, with a PE ratio of 269.17, and it has recorded a 1-yr return of 68.32%.

KPIT Technologies Ltd

KPIT Technologies Ltd, founded in 1990, is a global IT consulting and product engineering company specializing in automotive software and technology solutions. The company focuses on creating solutions for electric, autonomous, and connected vehicles, providing innovative software and digital services.

KPIT Technologies Ltd has a market capitalisation of Rs. 47,929.23 cr. The stock’s closing price is Rs. 1,766.30, with a PE ratio of 80.62, and it has achieved a 1-yr return of 49.90%.

Invest in the Best Electric Vehicles Stocks Selected By SEBI-Registered Analysts

Did you know that you can invest in readymade electric vehicle stock portfolios managed by SEBI-registered experts? These portfolios, known as smallcases, offer a convenient way to gain exposure to the growing EV sector in India.

smallcases are curated baskets of stocks or ETFs that are based on a specific theme or investment strategy. They are created and managed by SEBI-registered professionals.

Among 500+ smallcases, here’s the top electric vehicle smallcase:

Electric Mobility smallcase by Windmill Capital

Green Energy smallcase by Niveshaay

• Disclosures for Electric Mobility smallcase
• Disclosures for Green Energy smallcase

What are Electric Vehicle Stocks?

The full form of EV stock is electric vehicle stocks in India. It encompasses shares of electric vehicles in India, which produce, manufacture, and distribute electric vehicles, batteries, motors, EV software, and other charging stations.

In addition to having lower fuel costs (or none at all), electric vehicles emit significantly fewer emissions. Thus, in turn, Investing in electric vehicles also benefits the environment. With the Indian government’s focus on electric mobility, the best EV shares in India are slowly becoming the mainstream choice for investors. Therefore, if you are interested, here are the best electric vehicle stocks to invest in India.

Implications of the Union Budget 2024-25 on the Electric Vehicle Sector in India

The Union Budget 2024-25 was presented by Finance Minister Nirmala Sitharaman. It highlights the government’s focus on policy continuity, critical minerals for EV batteries, and workforce skills to drive innovation and sustainability in the electric vehicle (EV) sector. Some of the declarations relevant to the EV sector include:

1. The budget allocates Rs. 2,671.33 cr. to the FAME scheme for 2024-25, lower than the revised estimate of Rs. 4,807.40 cr. for 2023-24. The FAME scheme promotes the adoption of electric and hybrid vehicles and was initiated in 2015.
2. The budget proposes Rs. 3,500 cr. for the PLI Scheme for Automobiles and Auto Components for 2024-25. This is a significant increase from the revised estimate of Rs. 483.77 cr. in 2023-24. This shift aims to encourage auto manufacturers to focus on economies of scale rather than direct subsidies.
3. The PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage receives Rs. 250 cr. in the 2024-25 budget, higher than the revised estimate of Rs. 12 cr. in 2023-24.
4. Sitharaman also emphasised the Prime Minister Surya Ghar Muft Bijli Scheme, which aims to install rooftop solar plants for 1 crore households and provide free electricity up to 300 units per month. The scheme was allocated a budget of Rs. 6,250 cr. This initiative is expected to reduce reliance on non-renewable energy sources and promote renewable energy adoption.

To support the energy transition and combat climate change, the budget proposes expanding the exempted capital goods for manufacturing solar cells and panels in India. India’s roadmap for strengthening the EV charging ecosystem, outlined in the Interim Budget 2024, aims to boost EV adoption, with sales expected to exceed 100 million by 2030. The push for home rooftop solar panel installations is crucial for supporting this growth, especially in smaller cities.

Features of Top EV Companies in India

Choosing the best EV stock in India depends on your investment goals and risk tolerance. However, some of the key features are as follows:

• Strong Financials: The best EV stocks for long-term should have a solid track record of profitability and positive cash flow.
• Market Leadership: The company should lead in the Indian EV market with a strong brand and a wide range of products. The EV sector in India is exponentially growing, with many new players coming up; therefore, identifying and adding the market leader to your portfolio can provide stability.
• Growth Potential: The electric vehicle stock company should be well-positioned to take advantage of the growing EV market in India.
• Experienced Management Team: The electric vehicle stock company should have a management team with experience in the automotive industry and a clear vision for the future.

Segments of the EV Sector in India

The list of electric vehicle (EV) stocks can be categorised into distinct sectors:

Electric Vehicle Producers

These companies are engaged in designing, manufacturing, and selling vehicles. They are pivotal in the auto industry, producing various vehicles, from traditional gas-powered cars to the evolving electric and hybrid models. Prominent examples include Tesla, which focuses on electric vehicles, and established manufacturers like Toyota, Ford, and General Motors. The sector is marked by its continuous pursuit of innovation, technological advancements, and adaptability to meet consumer preferences and environmental regulations.

Battery Producers

These companies are key players in developing and producing electricity storage solutions, supplying batteries for electric vehicles, electronics, and renewable energy systems. Leading firms in this sector include Panasonic, LG Chem, and CATL. With the rising demand for electric vehicles and renewable energy, these manufacturers are critical in advancing battery technology, enhancing energy density, efficiency, and eco-friendliness, thereby contributing to the broader movement towards cleaner energy solutions.

Vehicle Components and EV Software

Manufacturers in this segment produce the essential parts needed for assembling vehicles, from engines to electronics. In the context of electric vehicles shares in India, companies specialising in EV software are vital for developing software for battery management, energy efficiency, and connectivity. Established component manufacturers like Bosch and Delphi, along with software-centric firms such as NVIDIA and Aptiv, are instrumental in driving the evolution of both traditional and electric vehicles through hardware innovation and the integration of advanced software, shaping the future of mobility.

EV Charging Networks

These networks form the foundational infrastructure that supports the widespread use of electric vehicles, facilitating their adoption. Firms like ChargePoint and Tesla operate extensive networks that provide EV users convenient access to charging stations. Positioned in urban areas and along major travel routes, these networks play a crucial role in making electric vehicle travel viable over long distances. Thus, they significantly influence the adoption of electric vehicles by alleviating concerns over battery range and promoting a shift towards sustainable and environmentally friendly transportation options.

What are the Benefits of Electric Vehicle (EV) Stock Portfolios?

EV stock portfolios in India offer several benefits, including:

• Exposure to a Growing Market: Top EV related stocks in India allow investors to invest in a growing market. A report by BloombergNEF predicts that EVs will comprise 31% of global passenger vehicle sales by 2030.
• Diversification: Electric vehicle stock portfolios in India offer diversification benefits. Thus, risk can be diversified across industries like renewable energy, EV battery stocks, manufacturing, and charging infrastructure. You can also invest in electric vehicle battery stocks and EV charging station stocks in India.
• Potential for High Returns: India’s electric vehicle growth could translate into high returns for investors. As demand for EVs increases, companies with electric vehicle stocks in India could see their stock prices rise.
• Environmental Benefits: Investing in the best EV stocks in India for long term can also have ecological benefits. By supporting companies involved in developing and producing EVs, you can accelerate the transition to a low-carbon transportation system.
• Favourable Government Policies: Governments worldwide are offering incentives and subsidies to promote the adoption of electric vehicles, which supports the growth of the electric mobility industry.
• Innovation and Technology: Electric vehicle stocks in India are still relatively new, and there is significant room for innovation and technological advancements, providing potential for future growth.

How to Choose the Top EV Companies for Your Portfolio?

To identify the best ev stock for investment, the following are the characteristics of the budding ev company in India:

• Diverse EV Range: To meet the needs of different market segments, a wide variety of electric vehicles, including passenger and commercial vehicles, as well as two-wheelers and three-wheelers, is essential.
• Technological Leadership: It is key to invest in cutting-edge EV technology, such as advanced battery systems, efficient powertrains, and innovative software, to improve driving experiences and ensure safety and performance.
• Supply Chain and Production: A strong supply chain and flexible manufacturing capabilities are vital for scalable production, ensuring the timely delivery of high-quality electric vehicles.
• Financial Stability: Solid financials, including revenue growth, profitability, and positive cash flow, are important for a company, enabling ongoing investment in development and expansion.
• Environmental Commitment: These EV sector stocks in India, including small cap electric vehicle stocks, can appeal to eco-conscious consumers, a company must engage in sustainable efforts, such as using renewable energy in manufacturing and reducing carbon footprints.
• Wide Customer Reach: Maintaining a broad customer base and extensive service and charging network is essential, promoting customer satisfaction and facilitating the transition to electric vehicles.
• Global Market Access: It is beneficial for a company to have the potential to expand into international markets, leveraging global EV demand for growth and innovation opportunities.

How to Invest in Electric Vehicle (EV) Stocks in India?

The increased adoption of EVs has propelled many EV stocks to double-digit growth. With many EV stocks in India riding high with strong momentum, investing in EV stocks – India has the potential to become a game-changer. To invest in electric vehicle related stocks in India:

1. Research and identify promising companies in the EV sector listed on Indian stock exchanges. Investors can utilise the Tickertape Stocks Screener to do this by taking a look at their 200+ filters.

2. Open a demat account using smallcase, and you can directly invest in the best EV stocks in India.

3. Place a ‘Buy’ order on the EV stocks of your choosing and monitor your investments.

4. One can also invest in an electric vehicle stocks portfolio via smallcase, which are managed by SEBI-registered analysts.

Who Should Invest in the Top EV Companies in India?

Considering the growth prospect of the electric vehicle (EV) sector, individuals looking for long-term growth opportunities should explore the best electric vehicle company shares in India. Moreover, investors who are more inclined towards safeguarding the environment and supporting sustainable energy solutions should explore the best EV stocks in India. However, one must evaluate their risk appetite and investment goals before investing in India’s best electric vehicle stocks or EV stocks.

EV Roadmap in Interim Budget 2024-2025

The key highlights from the Interim Budget 2024-25 concerning the electric vehicle (EV) sector in India:

• The budget emphasises strengthening the EV ecosystem by enhancing manufacturing capabilities and expanding charging infrastructure, aiming for a sustainable future​​​​.
• Finance Minister Nirmala Sitharaman’s initiatives signal a significant push towards making EVs a more viable option for consumers by addressing the current lack of charging points and promoting the manufacturing of electric vehicles​​.
• The government’s commitment extends to integrating electric buses into public transportation systems and encouraging eco-friendly vehicles to achieve a pollution-free transportation ecosystem by 2030​​.
• A broader vision for ‘Viksit Bharat’ includes fostering economic policies for growth, facilitating sustainable development, improving productivity, and ensuring energy security. It aligns with the push towards electric vehicles and sustainable transportation​​.
• The focus is not only on technological and infrastructural advancements but also on creating job opportunities in the EV sector. It is thereby contributing to India’s technological advancement and economic growth​​.

A Comprehensive Roundup of Indian EV Policies

India has been making significant efforts to promote the electric vehicles sector (EVs) as a sustainable mode of transportation. Here is a comprehensive roundup of Indian EV policies:

National Electric Mobility Mission Plan (NEMMP)

The NEMMP was launched in 2013 to promote EV development and adoption in India. The plan aims to achieve national fuel security and reduce vehicular pollution by encouraging hybrid and electric vehicles. The NEMMP plans to invest around Rs. 14,000 cr. to foster R&D efforts and is projected to save 9,500 litres of crude oil.

Faster Adoption and Manufacturing of Electric Vehicles (FAME) Scheme

As part of NEMMP, the government even launched the FAME India scheme. This was to promote hybrid and EV manufacturers in India so that the country becomes completely electrified by 2030. It’s a governmental incentive scheme that focuses on four major areas: Technology development, Demand Creation, Pilot Projects, and Charging Infrastructure.

State EV Policies

State EV policies refer to government policies and regulations implemented at the state level to promote the adoption and usage of electric vehicles (EVs). These policies can vary depending on the state and may include a range of measures such as financial incentives, regulations, and infrastructure development. Some notable ones include the Maharashtra EV Policy, Delhi EV Policy, Andhra Pradesh EV Policy, Tamil Nadu EV Policy, and Gujarat EV Policy.

Public Charging Infrastructure

Public Charging Infrastructure refers to the network of charging stations. It is related equipment that is publicly accessible and used for charging electric vehicles (EVs). The government has set a target of establishing 69,000 public charging stations for EVs by 2025. The government provides financial incentives to companies to set up public charging infrastructure to achieve this target.

Green Urban Transport Scheme (GUTS)

The GUTS was launched in 2018 to promote the adoption of sustainable transport systems in cities. Therefore, the scheme provides financial assistance to state governments in developing urban transport infrastructure, including EV charging infrastructure.

Factors To Consider Before Investing in Electric Vehicle Stocks in India

Here are some of the essential factors to consider before investing in electric vehicle stocks list in India:

• Government Policies: The Indian government has been promoting the adoption of EVs through various policies, including subsidies and tax exemptions. Investors should monitor the government’s policies and regulations related to the best EV stocks in India, as they can significantly impact the industry’s growth.
• Market Potential: The electric vehicle market is huge in India, with a growing middle class and increasing awareness of environmental issues. Investors should assess the stock market potential for EVs in India and the competitive landscape for potential growth.
• Check M&A’s (Mergers & Acquisitions): Mergers and acquisitions, or M&A, refer to combining two or more companies into one. Thus, an investor must search and pay extensive attention to these EV company stocks before making an investment decision.

To Wrap It Up…

The electric vehicle (EV) industry has been gaining momentum in recent years, driven by government incentives and increasing consumer demand. As the world transitions towards a more sustainable future, EV stocks are poised to play a significant role in this shift. Thus, investing in the top EV stocks portfolio may allow investors to gain exposure and potentially reap high returns.

Frequently Asked Questions on Electric Vehicle Stocks