Electric Vehicle Stocks in India: The transport sector has become one of the main sources that is responsible for the air pollution all over the world as well as in India. The emission of carbon monoxide is very harmful to human society. As a result, some deadly diseases have come out to destroy our society and environmental ecosystem. There are certain norms and regulations issued by the government and increased environmental awareness among Indian consumers are expected to fuel the demand for electric cars.
Electric vehicles can be a good replacement to reduce pollution. Some big companies already invested a lot of the capital to produce electric vehicles. The growing popularity of electric cars is encouraging leading car manufacturers to introduce electric cars in India. The key players offer a wide range of electric vehicles including passenger cars, light commercial vehicles, and electric buses. The Indian electric car market size was estimated at USD 380 million in 2021 and is expected to reach USD 150 billion by 2030, expanding at the highest compound annual growth rate of around 90% over the forecast period (2022-2030). This remarkable rise has nudged investors of to search for those companies which may benefit from the EV disruption.
Like other sectors, auto sector is also infected due to the covid pandemic but there is a market demand for electric vehicles. Indian government has taken some necessary measures to encourage this sector because this vehicle reduces pollution which is environment friendly. To encourage this sector Indian government has provided tax exemptions and subsidies to EV manufacturers and consumers. The Ministry of Road Transport and Highways also announced some relaxations regarding the issuance of permits. Government also announced to bring Foreign Direct Investment (FDI) in this sector.
Governments are actively inviting tenders to purchase electric buses for public transportation in various provinces. This gives additional encourage to companies manufacturing electric buses like Force motor Tata Motors, Ashok Leyland, JBM Auto, Olectra Greentech, and Eicher Motors. Maharashtra government is planning to transform its conventional transport system to electric system by 2028, and it is quite expected others will also follow the same in near future.
Tata Motors is already at the forefront of the electric passenger car segment with a large share. It is planning to launch its first electric truck. Tata Motor to invest around 15,000 crores to broader its markets on electric passenger vehicles in the next five years and 7500 crores in electric commercial vehicles. In 2021,Tata Motors led by a stronger recovery in commercial vehicle (up 5.8% MOM), M&HCV (up 29.7% MOM), passenger vehicle (up 16.8% MOM). Tata Motor shows total domestic sales at 66,307 units in Dec 2021 Vs 53,430 units (up 24%YOY).
Ashok Leyland has planned to invest around 1500 crore in the electric vehicle industry. Ashok Leylandhas taken a strong strategic decision to raise funds for Switch Mobility, the newly formed electric vehicles subsidiary of the company. In 2021, Ashok Leyland led by a stronger recovery in M&HCV (up 35.7% MOM) and passenger vehicle (up 19.5% MOM).
JBM AUTO has taken necessary steps to invest in its electric bus segments and it has also a plan that future demand for battery-powered public transport to bring India’s clean environment. The company intends to invest Rs 500 crore within three years to strengthen its business as well as charging and power stations.
Olectra Greentech has major interests in electric buses, and it is going to set up India’s biggest electric bus factory with estimated initially 600 crores to produce 10,000 thousand units.
Eicher already started to work on its internal combustion engine offerings alongside the electric vehicle models. The company has earmarked 500 crores for 2018-19 towards new product development and capacity expansion. It is also working to drive in an affordable range of electric air-conditioned buses to cater to public transit. Eicher Motors’ led by a stronger recovery in buses (up 69.3% YOY) and commercial vehicle (up 25.8% YOY), LMD (up 21.6% YOY), and HD truck (up 38.3% YOY).
SML Isuzu mainly operates in small buses and trucks. It has also planning to invest in electric vehicles. As per information from The Economic Times, The Company reported a fall of 32 percent y-o-y selling a total of 1,585 units.
TVS Motor is increasing its investment in electric vehicles and connected technologies over the past few years. Company will invest 1,200 crore in the next four years to work on multiple routes – investments in R&D and auto tech technologies. TVS iQube Electric is a customer-centric innovation that combine advanced electric drivetrain and next-gen TVS SmartXonnect platform.
Bajaj Auto approved setting up of subsidiary for manufacturing of the electric and hybrid vehicle. Bajaj Auto,because of its positive sentiments in rural and semi-urban areas and strong recovery in export destinations. Total sales at 3.62 lakh units vs poll of 3.62 lakh units. Total sales down 3% at 3.62 lakh units vs 3.72 lakh units (YoY). Domestic sales up 5% at 1.45 lakh units vs 1.39 lakh units (YoY).
Hero Electric Vehicles will invest Rs 700 crore by 2025 to restructure its business expansion and set up a new manufacturing unit. Hero Electric has most preferred pick in the two-wheeler space which registered 24,000 retail sales during the 45 days festive period starting from October 1 to November 15 compared to last year sales that stood at 11,339 units.
Amara Raja Batteries is the second largest car battery manufacturer in India. The company recently set up an Indian Technology Hub in its Tirupati area to build lithium-ion cells. Revenue continues to reflect sales recovery, led by growth in all segments, including auto, OEM, and replacement market sales. The company has targeted a CAGR of 15-17% revenue over the next five years, through partnerships, joint ventures, and acquisitions.
Exide Industries is the leading manufacturer of batteries in India which mainly focus for emerging applications like hybrid and electric vehicles. the company recently invested Rs 331.7 m in its subsidiary Exide Leclanche Energy and develop advanced solutions in lead-acid space.
Tata Power has a network of more than 1000 EV charging stations and around 10,000 home EV charging points across the country. The Tata Power EZ Charger ecosystem covers a wide range of portions in public chargers, captive chargers, and chargers. Tata Power has partnered with OEMs to develop EV charging infrastructure. It works with Tata Motors, MG Motors India Limited, Jaguar Land Rover, TVS, and more. The company also planning to expand in 3-wheeler charging market.
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