5 Ways To Invest In The Electric Vehicle Industry
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5 Ways To Invest In The Electric Vehicle Industry

LEAP IN THE ELECTRIC VEHICLE INDUSTRY

The Electric Vehicle Industry is now undergoing a paradigm shift as it attempts to transition to alternative/less energy-intensive modes of transport. India, too, is investing in this transition to electric mobility.

Recent plans to accelerate the transition to e-mobility are motivated in part by the burden of oil imports, growing pollution, and international pledges to address global climate change - all of which have elevated EV stocks to the hottest trend.

Finding the proper firm to ride the wave might be challenging since some companies have gathered tremendous amounts of money and seen their valuations jump. With the recent introduction of Ola's electric scooters and the hoopla around current electric vehicle (EV) models from Tata Motors, MG Motor, Mahindra and Mahindra (M&M), and Audi, Electric Vehicle Stocks are rapidly becoming the flavour of the day.

Stepping In - If you're a beginner intrigued by the hot stocks in the electric vehicle market but unsure how to invest, you've come to the perfect spot.

Before you begin - Here are 5 steps for you to follow before you start trading or investing in electric vehicles

  • Accustom yourself to the electric vehicle industry.
  • Learn why individuals trade or invest in electric automobiles.
  • Decide which electric car asset you wish to invest in.
  • Conduct your own investigation.
  • Choose your platform and begin trading or investing in electric vehicles.

Once you’ve checked the previous steps, Here are 5 Ways on How to Invest in the Electric Vehicle Industry!

A. Believing in the Makers: Investing in Electric Vehicle manufacturers

When investing in the EV business, the obvious first step is to identify automotive manufacturers that specialize in electric vehicles. Since the Indian EV sector is still in its infancy, it lacks a market leader in any vehicle category. The four-wheeler category is dominated by manufacturers like Mahindra & Mahindra (M&M), Tata Motors, and Maruti Suzuki.

B. Making a fortune through battery manufacturers

Electric cars are powered by lithium-ion (Li-ion) batteries. Batteries are the most expensive component of EVs, accounting for 40% to 50% of the total cost. India's fast adoption of electric vehicles would increase the country's need for lithium-ion battery production. Companies are now speeding up plans to manufacture lithium-ion batteries in the nation, seeking to take advantage of government incentives totalling Rs 180 billion. The following are the leading firms in this sector: Amara Raja Batteries, Exide Industries, Hero MotoCorp, Maruti Suzuki, Tata Chemicals, etc.

C. Capitalizing through charging infrastructure providers

Like lithium-ion batteries, charging points are the lifeblood of electric cars. Companies that manufacture electric vehicles invest a significant amount of cash and energy in charging station infrastructure. By 2027, the industry of EV charging stations is expected to reach an estimated US$29.7 billion, growing at a CAGR of about 40% between 2020 and 2027. Several well-known listed firms are active in this field, including Tata Power, Indian Oil Corporation (IOC), National Thermal Power Corporation (NTPC), and ABB India.

D. Investing in Metals

Silver's rising relevance in electric cars continues to rise. Silver is widely utilized in a variety of electronics due to its exceptional conductivity and corrosion resistance, which also expands its reach to electric cars. As a result of its superior conductivity, it has been classified as an electrically critical element by the electric and electronic industries. As a result, silver consumption is anticipated to skyrocket.

E. Trusting the process: Investing in Schemes

To encourage the usage and manufacturing of electric cars, the National Electric Mobility Mission Plan (NEMMP 2020) was announced. This initiative will prioritize technology development, pilot initiatives, demand generation, and charging infrastructure development. Investing in schemes is referred to as a small case. This category of firms invests in the electric vehicle ecosystem and is predicted to develop in conjunction with the expansion of electric mobility.

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Eventually, the scope of India's EV market growth is contingent upon the availability of capital for OEMs, battery manufacturers, and charge point operators, as well as improvements to infrastructure and diversified consumer options - in order to capitalize on the leap and growth of the EV industry, investing in stocks would be profitable with the sound knowledge and guidance.

Want to Know More?

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