Hot EV Stocks to Buy Right Now
Electric cars has recently gained popularity, particularly among investors. As the globe strives to become more environmentally friendly, and EVs address one of the primary sources of carbon emissions, investors have flocked to electric vehicle stocks, resulting in increased trading volume and, in some cases, dramatic price growth.
Additionally, many feel the sector's spectacular gains are only the tip of the iceberg.
In recent years, electric vehicle (EV) stocks have been one of the most popular investing topics in the stock market. Concerns about the emerging business appear to have been overcome by the enthusiasm around the space. There is little denying that the sector's excitement has waned in recent months.
What is the rationale for going electric, and what are the plans for the future?
Climate change is one of the primary reasons governments are being compelled to adopt an electric alternative. India is placed 168th out of 180 countries on the Environmental Pollution Index (EPI) 2020 in terms of air quality. One strategy used to counteract this has been to promote the use of electric cars (EVs). This will benefit not only the environment, but also India's economic health in general. India presently imports crude oil, which results in a roughly $60 billion trade imbalance.
The government's goal has been to electrify the whole country by 2030. This is a mammoth goal in light of the early phases of adoption in which we presently find ourselves.
Recognizing their role, several state governments have attempted to eliminate one of the primary impediments to buying an EV, namely the high initial cost. This can be observed in Maharashtra, where rebates of one lakh rupees were provided for electric automobiles. As a result, Maharashtra has the largest number of electric vehicle sales in India during 2017. Additionally, the government has recognised that it is prudent to focus early efforts on the public transportation infrastructure.
This is because the private sector's adoption of EVs will be heavily influenced by other variables such as attractiveness. Given that public transportation is one of the most extensively used modes of travel in a country like India, it will undoubtedly provide a significant boost to the industry.
Industries in India that will profit from Electric Vehicles
With India's move to sustainable transportation, a variety of sectors would gain, which will raise the stocks of electric car manufacturers in the country. This is why these industries have made significant investments in the electric car market.
Several sectors in India will profit from electric cars, including the following:
1. Lithium-ion Manufacturers of batteries
As the battery is a critical component of electric cars, battery makers stand to gain significantly from India's electric revolution. India's government has also established incentives for battery manufacturing and research and development, which means that stocks in this industry are certain to soar.
2. Manufacturers of anodes
It is reasonable to anticipate that firms producing anode material for lithium-ion batteries would be in high demand in 2021, boosting India's electric vehicle-related equities.
3. Electric Utility Companies
After the electric mobility ecosystem is established, there will be a massive need for power supply in India. This increase in demand benefits both the firms and investors looking for the top electric car stocks in India.
4. System of public transportation
In India, the majority of commuters use public transit. This industry will benefit as electric cars as public transportation raise the bar by making them more dependable, sustainable, and cost-effective.
This push for sustainable transportation offered possibilities for automotive manufacturers and battery manufacturers to develop and engage in alternative fuel vehicle research and development in India. This move is projected to significantly increase the value of electric vehicle-related equities in India and the price of electric car shares in India.
The Indian government has introduced policies and programmes such as FAME II (Faster Adoption and Manufacturing of Electric Vehicles) and the National Electric Mobility Mission with the objective of increasing the number of electric vehicles in India and advancing EV technology.
Top Electric Vehicle Stocks in India
The Indian EV sector is still in its infancy and does not yet have a market leader for all vehicle types. There are around ten significant companies in the two-wheeler market, three or four in the electric bus segment, and a few in automobile production.
Due to the embryonic state of the Indian EV industry, it is seen as an untapped potential. MG Motors, Maruti Suzuki, Renault, Audi, Volvo, Hero, and Ather are other players in the EV industry. As the EV sector grows, other related industries will follow suit. This covers both the battery and the electric vehicle chargers. Numerous businesses, including Siemens, Schneider, and Delta, have expressed interest.
However, these firms will enter the market only when there is a substantial demand for public four-wheelers. On the other side, one of the primary reasons for the EV industry's slow growth has been customer worries over the country's lack of Fast Chargers.
Due to the tiny scale of company, unorganised and small players dominate. To address this, the NITI Ayog is playing a critical role in establishing EV chargers. India presently has 270 installed EV chargers. NITI Aayog has collaborated with NTPC to provide 100,000 electric vehicle charging stations around the country. Other government institutions, including as BHEL, have cooperated with ISRO to create lithium-ion batteries.
At the moment, the majority of lithium demand are met by imports from China, South Korea, Vietnam, Singapore, and Japan. Additionally, Reliance, Suzuki, Toshiba, Denso Corp, JSW Group, Adani, Mahindra, Hero Electric, Panasonic, Exide Batteries, and Amara Raja have expressed interest in the lithium battery manufacturing sector in India.
List of Top 10 EV Stocks in India for Investors
|Amara Raja Batteries Ltd.||(Industry - Batteries), (Market Capital -14862.4 Cr), (Dividend yield - 1.47%), (PE Ratio - 19.72), (Share Price - 746.9)|
|Exide Industries Ltd.||(Industry - Batteries ),(Market Capital -15907.75 Cr),(Dividend yield - 2.46%),(PE Ratio - 19.19),(Share Price - 182.9)|
|Hero MotoCorp Ltd.||(Industry - Automobile Two-Three Wheelers),(Market Cap -62319.44 Cr),(Dividend yield - 3.08%),(PE Ratio - 20.01),(Share Price - 2,922.40)|
|Himadri Speciality Chemical Ltd.||(Industry - Chemicals),(Market Cap -1782.03 Cr),(Dividend yield - 0.27%),(PE Ratio -24.47),(Share Price - 55.45)|
|Vedanta Ltd.||(Industry - Metal-Non Ferrous),(MarketCap -82577.47 Cr),(PE Ratio - 8.42),(Share Price - 262)|
|Hindustan Copper Ltd.||(Industry - Metal-Non Ferrous),(MarketCap -11639.24 Cr),(PE Ratio - 118.08),(Share Price - 140.85)|
|Ashok Leyland Ltd.||(Industry - Automobiles-Trucks/Lcv),(MarketCap -34140.18 Cr),(Dividend yield - 0.49%),(Share Price - 122.6)|
|Mahindra & Mahindra Ltd.||(Industry - Automobiles-Trucks/Lcv),(MarketCap -105683.8 Cr),(Dividend yield - 1.12%),(PE Ratio- 21.99),(Share Price -784)|
|Tata Motors Ltd.||(Industry - Automobiles-Trucks/Lcv),(MarketCap -102580.91 Cr),(Share Price -344.9)|
|Tata Chemicals Ltd.||(Industry - Chemicals),(MarketCap -19155.12 Cr),(Dividend yield - 1.30%),(PE Ratio- 76.17),(Share Price -766.55)|
We discussed the top EV stocks in India in this article, as well as the leading Electric Vehicle Manufacturers, their current work in the EV segment, and their future prospects. The Indian government set a goal of completely replacing internal combustion engines with electric vehicles by 2030. According to a 2017 Mckinsey and Company report, 40% electrification was a more realistic scenario for mobility in 2030. However, this report was written prior to the Pandemic. This, in turn, will further delay the industry's electrification for years to come.
Additionally, the steps taken to facilitate the acceptance of EVs will fall short of their primary objective if alternative energy sources are not implemented. Currently, coal accounts for up to 60% of electricity generation. Although the government has established significant goals to accelerate the adoption of electric vehicles, much more has to be done to guarantee they are executed.
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