Top Electric Vehicle Stocks to Invest In
Key Highlights
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India’s EV market is projected to touch US$ 7.09 billion by 2025.
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The third edition of FAME with an outlay of ₹ 10,000 crore is expected to boost the industry further
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Wheels of Fortune from Kotak Securities Basket investing platform helps you invest in promising EV stocks with ease
With an increased focus on sustainability, the Government of India (GoI) has set ambitious initiatives to promote electric mobility. By 2030, GoI aims to have a 30% electric vehicle sales penetration for private cars, 70% for commercial vehicles, and 80% for two and three-wheelers.
According to projections, the Indian EV market, valued at US$2 billion in 2023, could jump to US$7.09 billion by 2025. These projections paint a rosy future for EV stocks, which rallied up to 253% last year, with five giving multibagger returns. If you are looking forward to adding EV stocks to your portfolio, consider investing in these stocks.
What are electric vehicle stocks?
EV stocks refer to companies that are primarily involved in various aspects of EV vehicles' production and manufacturing. These include:
- Automakers
- Battery manufacturers
- EV component manufacturers
List and overview of top electric vehicle stocks
| Stock Name | 3-year Trailing Returns (as of 8 July 2024 | Overview |
|---|---|---|
Bajaj Auto Ltd | 40.00% | Bajaj Auto Ltd is one of India’s premier automobile manufacturers. It has recently upped its EV game by announcing an investment of Rs 300 crores in a new unit at its Akurdi plant for the manufacture of EVs. |
Tata Motors Ltd | 20.00% | Tata Motors Ltd accounts for nearly 70% of India’s EV passenger vehicle sales and is one of India’s foremost EV manufacturers. |
Mahindra & Mahindra Ltd | 20.00% | Another premier EV manufacturer in India, Mahindra & Mahindra Ltd contributes to India’s EV market with its subsidiary, Mahindra Electric Automobile. It plans to invest Rs 12,000 crores in its EV unit over 3 years up to 31st March 2027. |
Samvardhana Motherson International Ltd | 15.00% | With a strong EV orderbook, Samvardhana Motherson International Ltd is poised to become a dominant player in the segment in the coming days. |
Source: Value Research, Kotak Securities
How to identify best performing electric vehicle stocks?
Here are some parameters you need to keep in mind while searching for the top-performing electric vehicle stocks:
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Financial performance
Look at the company’s financial performance. To determine its financial health, evaluate metrics such as earnings growth, revenue growth, and profit margins.
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Long-term stock returns
Take a close look at the long-term returns from the stock. Find out how the stock has performed during different market phases, especially during downturns.
Why invest in these stocks?
Invest in them as they:
- Belong to trusted brands in the EV segment with strong financials and management
- Holds growth potential
- Are from companies known for their robust R&D and product development
Factors to consider while investing in EV stocks
Some essential factors to keep in mind while investing in EV stocks are as follows:
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Government policies
Evaluate the government's policies and incentives for the EV sector. These can significantly impact EV manufacturers' profitability and growth.
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Competition landscape
It is vital to analyse the competitive landscape within the sector, including new entrants, established automakers and startups. You need to evaluate a firm's product offerings, market share, and brand reputation to determine its competitive positioning and growth potential.
Industry overview
The Indian EV market is expected to touch USD 120 billion by 2030, recording a CAGR of 22.92% during the 2024-2030 period. In the last few years, GoI has come up with several initiatives to enhance demand for EVs and encourage manufacturers to engage in the R&D of EVs.
The government is expected to roll out the third edition of the Faster Adoption & Manufacturing of Electric Vehicles (FAME) in the full-fledged Union Budget 2024 with an outlay of Rs 10,000 crores. With India steadfast in its commitment to achieve the net zero emission target by 2070, EVs are expected to play a vital role in this endeavour.
Wheels of Fortune: Your gateway to invest in promising EV stocks
You can easily invest in promising EV stocks through Wheels of Fortune. This expert-curated basket of Kotak Securities Basket investing platform helps you buy, sell and track your investments in just a few taps. Wheels of Fortune allows you to participate in India’s EV growth story with ease. Click here to know more.
CTA Source: Kotak Securities’ website/Kotak Securities Basket investing platform
Disclaimer: This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed SEBI prescribed limit. The securities are quoted as an example and not as a recommendation. SEBI Registration No-INZ000200137 Member Id NSE-08081; BSE-673; MSE-1024, MCX-56285, NCDEX-1262. For compliance T&C and disclaimers, Visit bit.ly/ksecdisc
FAQs
What is the best EV stock to buy?
Opt for an EV stock that has delivered good long-term returns with the company having strong financials and management. Also, check the company’s track record in technology and innovation.
Is it worth investing in EV stocks?
The Indian EV market is poised for growth in the coming days, with EV stocks holding promising growth potential.
