What Electric Vehicle Stocks Will Go Up? Which EV Stock Should I Buy?
India is the fourth largest emitter of carbon dioxide after China, the United States, and the European Union. Accordingly, the Indian government has aggressively promoted the use of electric vehicles in the country.
The exponential increase in the number of electric two-wheelers in India and the simultaneous introduction of electric automobiles by Tata, BMW, Kia, Honda, and Hyundai have shifted the focus of the Indian automotive market to electric vehicles.
This interest is also reflected in EV Stocks, and even if you are not actively involved in the stock market, you cannot avoid the conversation around the Indian EV industry.
Is EV Stock market truly in demand? Or is it simply hype?
We have depleted the Earth's natural resources to their utmost capacity and are now forced to seek alternate means to suit our requirements. The automotive industry is one such sector that relies entirely on natural resources - it relies heavily on gasoline and diesel.
However, as renewable energy sources are decreasing quickly and are finite, we are starting to transition to renewable energy sources and preserving the environment. Thus, the decision of automotive makers to convert to sustainable alternatives proved to be a wise one.
Therefore, if you are an investor searching for the most promising industry to invest in, then the electric vehicle industry is the hot bait. In India, EV stocks are flourishing, and in the future, you will not only see vehicle stocks but also those that assist the sector.
Are These Electric Vehicle Stocks Currently on Your Watchlist?
When we think of electric vehicles (EVs), we only consider automakers such as Tata and Mahindra. Nevertheless, the entire industry is subdivided into components, segments, infrastructure, and software.
- EV Makers Stocks
- Auto parts and EV software Stocks.
- Battery Manufacturer Stocks
- EV charging Stocks
Let's examine in greater detail which stocks you should monitor.
Automobile manufacturer (EV) stock
- Mahindra Electric is the pioneer of electric vehicles in India. As the first significant EV producer, Mahindra Reva, its first EV, was introduced in 2001. Over the years, Mahindra has established a dedicated research and development centre in Bengaluru. Among its other electric vehicle types are the Mahindra E20 and the eVerito.
- Tata Motors' automobile segment includes the production of automobiles, utility vehicles, buses, trucks, and military vehicles. Tata, meanwhile, is a relative newcomer to the EV market compared to Mahindra. Tata has prioritised the Passenger Vehicle and Electric Bus markets in India when it comes to EVs. The Nexon EV, the Tigor EV, the Nano EV, and the Tiago EV. Tata anticipates demand from State transport Unions within the Electric bus market.
- Hyundai entered the Indian EV market with the introduction of the Hyundai Kona EV. Hyundai has just announced that it is in the process of developing a second affordable EV for the mainstream market.
Inventories of Auto parts and EV software
1. Tata ELXSI Limited
Tata ELXSI is an IT-software development company that constructs software for Tata Motors' electric vehicles. The company has also developed software that can be utilised by any EV. Future licencing sales of this software to other automobile manufacturers are anticipated by ELXSI.
Battery Production for EV Inventory in India
1. Exide Industries Limited with its headquarters in Kolkata, is an Indian multinational storage battery manufacturer and life insurance firm. It is the largest automotive and industrial lead-acid battery maker in India and the fourth largest in the world.
2. Amara Raja Batteries Limited produces lead-based batteries for use in conventional vehicles. Now, however, are fully capable of manufacturing lithium-ion batteries, a crucial component of an electric vehicle.
3. TATA Chemicals Limited has a different vision than its competitors, as it focuses on developing an ecosystem for battery generation.
EV charging station EV inventory in India
- Indian Oil Corporation, the country's largest oil refining and petroleum marketing corporation, intends to add EV charging stations at 10,000 gas stations in next three years. Nationwide, there are currently 448 EV charging stations and 30 battery switching stations. In addition, it has cooperated with EV manufacturers and power firms, including Hyundai, Mahindra, Ola, NTPC, and Tata Power, to instal EV chargers at gas stations. To keep ahead of this transformation, the company is studying emerging trends in mobility and the EV value chain to discover business opportunities.
- Bharat Petroleum Corporation is a refining and marketing enterprise. With a network of 19,000 outlets, it is India's second-largest oil marketing corporation and third-largest refining company. The company now has 44 EV charging stations and wants to instal 1,000 more by October 2022. In the coming years, 7,000 conventional outlets will be converted into energy stations to enable electric transportation.
Reliance Industries is India's largest private sector company. The corporation is a well-established operator in the petroleum and refinery industry and is the country's second-largest refinery. Reliance has partnered with British Petroleum under the banner Jio-BP to instal EV charging stations around the country. In the first phase of the initiative, Jio-BP would instal EV charging stations in the Delhi-NCR region capable of charging at least 30 vehicles per station. The first EV charging station with numerous fueling options has already been installed in Mumbai. It has teamed with BluSmart, an EV ride-hailing app, to establish a charging network for EVs in India using cutting-edge technology.
Author's Opinion:
Electric vehicle stocks will continue to yield huge profits. The excitement surrounding EV stocks is warranted. EVs are gradually replacing automobiles powered by internal combustion engines (ICE). The shift to 100 percent EVs will present opportunities not only for EV manufacturers but also for a number of other EV market participants. You only need to invest in the appropriate EV stocks to make a fortune.
Happy Investing!
