As India has set a target of reducing the emissions intensity of its GDP by 45 per cent by 2030, where emission intensity means the ratio of a pollutant's emission rate to the intensity of a given activity or industrial manufacturing process, demand for electric vehicles has increased due to awareness. The promotion of electric vehicles is one of the steps taken forward to fulfil the allotted task.
However, Due to the fact that the Indian EV market is still in its early stages, not all vehicle types have a clear market leader. In the two-wheeler market, there are more than ten significant players. In the electric bus market, there are three to four.
Here are a few EV stocks which are booming the industry and have the potential to contribute a decent return to your portfolio.
There are four variants to pick from when it comes to electric vehicles: Nexon EV, Tigor EV, Nano EV, and the Tiago. Tata anticipates demand from state transportation unions for its electric bus product. Long-term demand is projected to be in the range of 400,000 buses. Tata is also actively focusing on setting up charging stations across the country to improve its industrial infrastructure. The market capitalization of Tata motors is ₹1.62 trillion.
Hinduja’s giant Ashok Leyland is the world’s 4th largest bus manufacturer and market leader among the truck producers. The company has a collaboration with Sun Mobility to improve its expertise in the emerging field of electric vehicles. In order to meet the country's e-mobility needs, Ashok Leyland creates electric variants specifically for Indian conditions and has added battery swapping in electric buses.
It has introduced a number of electric bus variations, including the Circuit, HYBUS, and Electric Euro 6 Truck, and made the iBUS announcement. The company is currently concentrating on boosting exports as its main priority. The market capitalization of Ashok Leyland is ₹489.94 billion, with a dividend yield of 0.61%.
A part of the MEIL group, Olectra Greentech is currently India’s largest EV bus manufacturer. The business recently underwent technological advancements, one of which was opening a 10,000-unit-capable factory in Hyderabad. The company held orders for 2000 buses worth between Rs. 3000 and Rs. 3500 crores for the December quarter of 2021. The company's market capitalisation is ₹51.62 billion, with a dividend yield of 0.06%.
Mahindra & Mahindra
Mahindra was the first company that launch electric cars in early 2001. The first electric vehicle in India was the Mahindra Reva. Mahindra established a specialised R&D facility in Bengaluru over the years. The Mahindra E20 and eVerito are two of its further electric vehicle variations.
However, Mahindra has expanded its focus to include the production of battery packs and has cooperated with a number of organisations to promote EV charging. The company's market capitalisation is ₹1.56 trillion, with a dividend yield of 0.87%.
The government's indirect support is why companies are increasing their production capacity of batteries, software, auto parts, and other auxiliary companies. The sector is moving ahead to match the supply with its demand, which could be the primary reason why you should buy EV stocks.
The industry grows with the simultaneous effect of the company’s advancement in emerging technology and increased capacity, along with meeting adequate demand. Your money will grow with the company itself if you invest in EV stocks.
Anushka Trivedi is a freelance financial content writer. She can be reached at anushkatrivedi.com
Disclaimer: This article is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decisions.