Best EV Stocks in India 2024

22 March 2024
9 min read
Best EV Stocks in India 2024
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(The stocks mentioned in the blog are as per Analyst Ratings and Market Capitalization)

In recent years, electric vehicles (EVs) have become increasingly popular due to their cleaner and more efficient nature than traditional gasoline cars. With advancements in battery technology and a growing network of charging stations, EVs are now a feasible choice for many drivers worldwide.

The global movement towards sustainability and government support for renewable energy has further accelerated the adoption of EVs. Therefore, the demand for EV stocks has surged as investors recognise the potential for significant growth in this sector. 

In this guide, you will learn about the top EV Stocks in India, as per analyst ratings and market capitalisation, that not only provide financial opportunities but also align with the broader goal of fostering a sustainable future.

EV Industry in India - A Brief Overview

India ranks 3rd in global automobile sales and aims to collaborate between manufacturers and policymakers to promote greener options. The automotive sector is a key contributor to India's economy, making up 7.1% of its GDP and offering substantial employment opportunities. The electric vehicle market in India is projected to hit USD 34.80 billion in 2024 and is expected to grow at a rate of 26.05% annually, reaching USD 110.74 billion by 2029. 

India aims to boost EV sales significantly by 2030, targeting 30% for private cars, 70% for commercial vehicles, 40% for buses, and 80% for two-wheelers and three-wheelers. Additionally, India plans to achieve 100% local production of EVs through the 'Make in India' initiative. 

According to the Union Budget of 2023-24, around ₹35,000 crore has been allocated for vital capital investments to achieve energy transition and net-zero targets by 2070. Moreover, the Government of India has launched various initiatives like the Production Linked Incentive Scheme (PLI) and the Faster Adoption of Manufacturing of Electric Vehicles Scheme – II (FAME – II) to support the growth of the electric vehicle industry.

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Best EV Stocks in India 2024 as per Analyst Ratings

The following table represents the best EV stocks in India in 2024 as per analyst ratings. We have selected analyst ratings as a criterion as these analysts perform a comprehensive analysis of the stock market before rating a stock-

S.No.

EV Stocks in India (as per analyst ratings)

BUY Analyst Rating (in %)

1.

Mahindra & Mahindra

89

2.

Tata Motors

78

3.

Maruti Suzuki India

70

4.

TVS Motor Company

61

5.

Bajaj Auto

51

*Our stock selection criteria for top stocks based on analyst ratings are mentioned at the bottom of this blog.

Top EV Stocks in India in 2024 as per Market Capitalisation

Here is a list of the top EV Stocks in India based on market capitalisation:

S.No.

EV Stocks in India (as per market capitalisation)

1.

Tata Motors

2.

Maruti Suzuki India

3.

Bajaj Auto

4.

Mahindra & Mahindra

5

TVS Motor Company

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

Overview of Best EV Stocks in India as per Analyst Ratings

Here is a brief overview of the top EV companies’ stocks in India according to analyst ratings:

1) Mahindra & Mahindra

Incorporated in 1945 and formerly known as Mahindra & Mohammed, Mahindra and Mahindra Limited is an Indian multinational automobile manufacturing company.

The company's segments encompass automotive, technology services, farm equipment, financial services, consumer services, logistics, etc. Mahindra & Mahindra’s automotive segment includes SUVs, electric SUVs, small commercial vehicles, large commercial vehicles, three-wheeler cargo vehicles, etc.

Its offerings cater to various industries such as aerospace, agribusiness, automotive, clean energy, defence, retail and infrastructure. With manufacturing facilities across multiple countries and research and development centres, Mahindra and Mahindra operate globally, serving markets in South Korea, Japan, Italy and North America. 

2) Tata Motors

Tata Motors is a worldwide automobile manufacturer and distributor headquartered in Mumbai, Maharashtra, India. It offers a diverse range of commercial, passenger, electric vehicles, defence vehicles, trucks and buses.

Additionally, it provides engineering services, automotive solutions, construction equipment manufacturing, automotive vehicle component manufacturing and supply chain activities through its subsidiaries. 

Tata Motors’ Nexon EV model has made a significant impact in the electric vehicle (EV) sector. The company is committed to offering sustainable transportation solutions in India's growing EV market. Currently, it operates across Asia, Europe, Russia, the Middle East, Central America, South America, North America, Oceania and Africa. 

3) Maruti Suzuki India

Headquartered in New Delhi, Maruti Suzuki India Limited (MSIL) is a subsidiary of Suzuki Motor Corporation. It holds the title of India’s largest passenger car manufacturer. The company primarily focuses on manufacturing and selling passenger vehicles within India. Maruti Suzuki has now expanded its portfolio to include 16 car models with over 150 variants. 

Their products range from Alto, Ertiga, Baleno, Super Carry, Eeco Cargo,  XL6, Ignis, S-Cross, S-Presso, Celerio, WagonR, Swift, DZire, Ciaz, Eeco, etc. Additionally, Maruti Suzuki provides various services like finance, insurance, accessories, parts, driving school, leasing and fleet management.

Maruti Suzuki operates 2 manufacturing plants located in Gurugram and Manesar while serving customers from Europe, Asia, Oceania and Latin America. 

4) TVS Motor Company

TVS Motor Company Limited is a well-known global manufacturer of two and three-wheelers. Headquartered in Chennai, it operates as a subsidiary of Sundaram Clayton Limited.

Its motorcycle lineup includes popular models such as the Apache Series RTR, TVS Raider, Apache RR 310, TVS Radeon and TVS Sport. Furthermore, scooters offered by TVS include the Jupiter, NTORQ and Zest, among others. 

They also provide the TVS Augmented Reality Interactive Vehicle Experience (ARIVE) mobile application, allowing customers to explore detailed information about their products, book test rides and place orders. It operates 4 manufacturing facilities, with 3 located in India and one in Indonesia at Karawang. 

5) Bajaj Auto

Bajaj Auto Limited, headquartered in Pune, manufactures two-wheelers, three-wheelers, and quadricycles. The company is involved in developing, manufacturing and distributing automobiles, including commercial vehicles, motorcycles, electric two-wheelers and parts.

Their motorcycle lineup includes various models such as Boxer, CT, Platina, Discover, Avenger, Dominar, Pulsar, Husqvarna, KTM, and Chetak. Additionally, their range of commercial vehicles includes Passenger Carriers, Goods Carriers and Quadricycles. 

Bajaj Auto has manufacturing plants in Waluj, Chakan and Pantnagar. Bajaj Auto exports two and three-wheelers to regions including Africa, Asia Pacific, South Asia, Latin America, the Middle East, and Europe. Furthermore, the company has 5 overseas subsidiaries and 2 Indian subsidiaries.

Factors to Consider Before Investing in EV Stocks in India

When determining the top EV stock in India, it is important to assess different factors that reflect a company's potential for growth, sustainability and profitability in the expanding EV market.

Here are some key aspects to consider before investing in the EV sector stocks in India:

  • Financial Performance

Before investing in EV stocks in India, keep in mind that a strong financial foundation is crucial for sustaining and growing in the competitive market.

Strong revenue streams, profitability and positive cash flow, enable continuous growth of your investment and ensure long-term success in the EV industry.

  • Innovative Technology

When choosing the best EV stocks in India, look for companies with leading EV technology. It involves developing and integrating cutting-edge battery systems, efficient powertrains, and advanced software for better autonomous and connected driving experiences.

These technological advancements enhance vehicle performance, safety, reliability and user-friendliness.

  • Supply Chain Resilience

A strong supply chain and manufacturing capabilities are vital in the EV industry. Having key EV components and a flexible manufacturing system allows for scalable production to meet the increasing demand for electric vehicles.

It ensures timely delivery of high-quality products to the market, giving the company a competitive edge.

  • Mergers and Acquisitions (M&As)

Before investing, review a company's M&A history to understand its market growth and potential benefits. Successful collaborations, especially with technology or energy sectors, demonstrate resilience and adaptability.

  • Diversification

You must look for a company with a wide variety of EV products like passenger vehicles, commercial vehicles, two-wheelers, three-wheelers and so on.

A diversified product portfolio and the ability to cater to diverse consumer demands have better potential of capturing maximum market share in the electric vehicle sector.

  • Government Policies

You must keep an eye on government policies promoting EV adoption, such as subsidies and tax exemptions. These policies can significantly influence the industry's growth.

Should You Invest in EV Stocks?

When considering whether to invest in EV stocks, it is crucial to assess the risks associated with the industry in 2024. One primary concern is as more companies enter the EV market, it increases competition and pricing pressures. It can result in thinner profit margins, impacting stock prices. Additionally, regulatory changes and shifts in consumer preferences may affect the demand for EVs, further influencing stock prices.

Although the EV sector has shown significant growth potential, it is susceptible to sharp fluctuations in stock prices. Factors such as supply chain disruptions, geopolitical tensions, and macroeconomic trends can all influence investor sentiment and contribute to market volatility. Therefore, you must do thorough research before investing in EV stocks.

Summing Up

When considering investing in top EV stocks in India, it is essential to recognise the promising prospects within India's evolving electric vehicle industry.

With the nation's growing emphasis on sustainable transportation and technological advancements in EVs, the market presents lucrative investment opportunities. However, before buying the best EV shares, thoroughly analyse market dynamics and consult with financial experts for informed decision-making. 

*Stock Selection Criteria for Top Stocks Based on Analyst Rating

Investors must carefully read through the following information on stock selection criteria while running through the stocks based on analyst ratings-

These stocks have been shortlisted as per Analyst ratings provided by the I/B/E/S (The Institutional Broker’s Estimate System) database, further aggregated by Refinitiv. Ratings are determined by analysts' forecasts of company performance, taking into account metrics like earnings per share, sales, and net income. These ratings should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).

Before investing, investors must conduct independent research and not solely rely on the information provided here. This will allow investors to make appropriate investment decisions based on their financial goals, investment objectives and risk tolerance.

*Stock Selection Criteria for Top Stocks Based on Market Capitalisation

These stocks are chosen based on their market capitalization, which represents the total value of a company's outstanding shares. The selection is arranged in descending order, placing the largest companies first and the smaller ones later. This helps prioritize stocks based on their market size. 

It is important to note that market capitalization in no way guarantees a company’s performance or the returns from its stocks. However, it can be used as a criterion for shortlisting companies from within a sector. Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. 

This stock selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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Research Analyst - Aakash Baid

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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