Best EV Stocks in India 2024: Stocks to Buy for Long-Term Gains

Introduction

This blog is on India’s best EV stocks. This will cover the top EV stocks in India of companies contributing to India’s EV industry and Indian economy.

Electric vehicles (EVs), also known as electric vehicles, electric motor-powered passenger cars operating from an electric motor, are a type of vehicle that utilizes an external source of supply which is the battery-powered electric motor.

Electric vehicles, which have increasingly gained popularity in the world due to them turning out to be more efficient and less destructive to the environment as compared to conventional fossil fuel-based cars, are gaining increasing acceptance worldwide. Advances in the aspect of battery technology along with the expansive network of charging points around the globe contribute to increasingly higher sales of electric vehicles today.

The adoption of electric vehicles has accelerated with the global call for environmental sustainability and Governments' worldwide initiatives for the sustainability of renewable energy. In contrast, investors' appreciation of the huge growth potential in the sector resulted in a sharp demand for equities in electric vehicles.

EV in India- Overview

India ranks 3rd globally in terms of automotive sales. The automotive sector generates a large amount of employment possibilities and accounts for 7.1% of India's GDP. With a CAGR of 26.05%, the market for electric vehicles is expected to reach $34.80 billion in 2024 and reach $110.74 billion by 2029.

India has set quite ambitious goals for its EV sales by 2030. It will attain a 30% market share for private automobiles, 70% for commercial vehicles,40% for buses, and 80% for two and three-wheelers. The other goal of India is to use the 'Make in India' effort to have all EVs manufactured domestically.

The Union Budget 2023-2024 has allocated a sum of about Rs.35,000 crore for important capital investments that are required to achieve the energy transition and the target by 2070. 

Government Scheme for Electric Vehicles

The Indian Government has started schemes such as the PLI Scheme in production-linked incentives and FAME-II for the faster adoption of manufacturing electric vehicles.

Best Electric Vehicle Stocks to Invest in India

Below are some best electric vehicle stocks that might be suitable to invest in India:

1. Maruti Suzuki India Ltd

It is the biggest producer of passenger cars in India. The company primarily operates by manufacturing and selling passenger vehicles in both markets across India and in international markets. Alto, Ertiga, Baleno, Ignis, S-Presso, Celerio, WagonR, Swift, DZire, and other products are among its offerings. Furthermore, Maruti Suzuki offers services like vehicle financing, part and accessory retail sales, driving instruction, leasing, and fleet management.

The company posted net sales of Rs.38,471 crore for the quarter ended March 2024, up 14.79% over the December 2023 quarter figure of Rs.33,513 crore. Year-on-year, the amount was Rs 32,213 crore and had gone up 19.43%. Net sales for the September quarter were at Rs.37,339 crore. 

Maruti Suzuki is a late entrant to the EV space. The first EV is to be launched by the company in 2025. The battery pack of the EV is of 60kWh. The vehicle can run up to 550 km on a single charge.

Reports also say that the company would invest as much as Rs.1.25 lac crore by FY31 in developing 10-11 new models, of which six will be electric vehicles. In addition, the EV is expected to make up 15-20% of the total sales by FY31.

The industry P/E ratio is 26.67, ROE is 16.8%. The book value is 2,724. The market cap of Maruti Suzuki is 3,89,864 Cr.

This company has 58.19% reserved for promoters, 18.98% for foreign Institutions (FIIs), 0.07% for Government, Retail and other is 3.41%, and DIIs 19.37% as of June 2024.

Maruti's stock return for 1 year is 17.1%

 

2. Mahindra & Mahindra Ltd.

Mahindra & Mahindra Limited is an Indian multinational automobile manufacturing company established in 1945, although earlier known as Mahindra & Mohammed.

Mahindra & Mahindra runs its business in the automotive, technology services, farm equipment, financial services, consumer services, and logistics sectors. Mahindra's automotive portfolio includes SUVs, electric SUVs, small and big commercial vehicles, three-wheeler transport vehicles, and so on.

The sales for the fourth quarter that ended in March 2024 were almost flat with that of the previous quarter of Rs.35,299 crore and stood at Rs.35,452 crore. In the case of the September quarter, its net sales stood at Rs.34,436 crore. Against the corresponding year ago, the same was Rs.32,456 crore. Net sales for the June quarter were Rs.33,892 crore.

Its industry P/E ratio is 26.8, ROE is 18.4%. The book value is 532. The M&M market cap is 3,86,613 Cr.

This company has 18.55% reserved for promoters, 41.90% for foreign Institutions (FIIs), 0.07% for Government, Retail & others 3.73%, and DIIs 26.18% as of June 2024. 

M&M shares 1 year returns are 100%.

3. Tata Motors Ltd

One of India's biggest automakers, Tata Motors Ltd. was established in 1945 and produces a variety of vehicles, including commercial trucks and passenger cars. With its Tata EV range, the business is also leading India's electric vehicle revolution.

Via its subsidiaries, it also offers supply chain management, engineering services, automotive solutions, and the production of construction equipment and automotive vehicle components. 

The Nexon EV model from Tata Motors has had a big impact on the EV market in India. The company provides eco-friendly transportation options in India, where the EV market is expanding. It currently conducts business throughout Africa, Central America, Europe, Russia, the Middle East, etc.

It reported net sales of Rs.1,19,986 Cr for the fourth quarter that ended on March 31, 2024, up from Rs.1,10,577 Cr for the third quarter that ended on December 20, 2023. YoY net sales increased from Rs.1,05,932 Cr to 13.27%. The company's net sales for the quarter that ended in September 2023 were Rs.1,05,128 Cr, and net sales for the quarter that ended in June 2023 were Rs.1,02,236 Cr.

The company’s industry P/E ratio is 21.3, ROE is 49.4%. The book value is 255. The market cap of Tata Motors is 3,38,715 Cr.

This company has 41.86% reserved for promoters, 18.12% for foreign Institutions (FIIs), 0.12% for Government, retail & other is 26.55%, and DIIs 13.33% as of September 2024. 

Tata Motors shares 1 year returns are 39.3%.

Above are some electric car companies stocks with their market cap and last 1 year's returns. The performance of electric vehicle company shares will depend on Government policies in the EV sector.

Conclusion

India is in a position to grow rapidly as the Government continues to provide incentives toward achieving good targets by 2030. These were some Best EV Stocks in India to buy as per the market shift to the EV sector. Any investment in top EV stocks like Maruti Suzuki, Mahindra & Mahindra, and Tata Motors may fetch returns since the companies continue to increase their electric vehicle portfolio. With supportive policies and resultant increasing demand, Indian EV stocks might bring exciting opportunities to investors.

Disclaimer

This blog is NOT any buy or sell recommendation. The above Shares data are based on the companies' past performance and information collected from various sources. We do NOT encourage/advise/suggest/recommend anyone to involved or invest in stock buying selling or trading activities. Trading or buying or selling securities is a market risk-based activity.

This information or hierarchy of selected stocks should NOT be taken as recommendation/investment advice/offers/solicitations for the buy or sale of any securities. Investors should do their research, consult with their financial advisors, and consider their risk tolerance, financial ambitions, and investment goals before financial investments.