Best EV Stocks in India 2024

Best EV Stocks in India 2024 as per Analyst Ratings

The following table represents the best EV shares in India in 2024, as per analyst ratings. These analysts perform a comprehensive analysis of the stock market and the stocks under consideration before assigning them a rating.

Top EV Stocks in India in 2024 as per Market Capitalisation

Here is a list of the best EV sector stocks based on market capitalisation:

Overview of Best EV Stocks in India as per Analyst Ratings

Here is a brief overview of the top EV company 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 operations span the automotive, technology services, farm equipment, financial services, consumer services, and logistics sectors. In the automotive segment, it has a presence in sports utility vehicles (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. Its manufacturing facilities and research and development (R&D) centres are spread across many countries. The company serves markets in South Korea, Japan, Italy, and North America.

For the fourth quarter ending March 2024, the company notched up net sales of Rs 35,452 crore, little changed from Rs 35,299 crore in the third quarter. Year-on-year (YoY) net sales were up 9.52% from Rs 32,456 crore. In the September quarter, net sales were Rs 34,436 crore, while in the June quarter, it registered Rs 33,892 crore of net sales.

Profit after tax (PAT) stood at Rs 3,125 crore in Q4, up 4.97% from Rs 2,977 crore in the third quarter ending December 2023, and up 4.23% from Rs 2,998 crore YoY. In the September quarter, PAT came in at Rs 2,484 crore, while in the June quarter, it stood at Rs 3,684 crore.

For the first nine months of FY24 (as of December 2023), the company notched up net sales of Rs 103,627 crore, up 16.56% from Rs 88,906 crore in December 2022. This is compared to net sales of Rs 64,236 crore in December 2021 and Rs 52,822 crore in December 2020. The rise in numbers in FY23 was due to the strong overall automobile market, including the farm market. PAT for the nine months ended December 2023 stood at Rs 9,145 crore, compared to Rs 8,376 crore in December 2022, Rs 4,645 crore in December 2021, and Rs 363 crore in December 2020.

The company’s market share in UVs increased to 18% in FY23 from 15% in FY22 and to 19% in the first half of FY24.

UVs include sports utility vehicles (SUVs), multi-utility vehicles (MUVs), and small trucks. In the electric passenger vehicle (ePV) space, Temasek paid Rs 1,200 crore for a 1.49%-2.97% stake in Mahindra Electric Automotive Ltd (MEAL). Temasek is a global investment company owned by the government of Singapore. Earlier, British International Investment (BII) said it will invest Rs 1,925 crore ($250 mn) in MEAL for a 2.75% to 4.76% stake in the EV maker. BII was formerly CDC Group, a development institution owned by the government of the UK. M&M will invest a similar amount in the EV maker. These investments are part of a strategy to push M&M’s EV sales to 30% of overall sales by 2030.

At M&M, tractor sales in March 2024 stood at 24,276 units, up 20.6% in February 2024 at 20,121 units. However, on a YoY basis, the number is down 28% to 32,622 units.

In FY25, the management sees growth of around 14-16% in: SUVs – on the back of healthy demand and new launches; and tractors – after a fall in volumes to the tune of 10% in Q4 and 5% for the full year FY24.

In the SUV space, March 2024 sales of 40,631 were up 13% YoY (35,976 units in March 2023), but lower than in February 2024 at 42,401 units. In commercial vehicles (CVs), too, March sales of 20,930 units were down from February sales of 22,825 units. This is a fall of 8.35%. This slowdown in sales has surprised analysts, who expected a better performance.

Going forward, monsoons will hold the key to tractor sales as well as rural demand for SUVs. 

Mahindra and Mahindra has a market cap of Rs 3.12 lakh crore.

2) Tata Motors

Tata Motors is a global automobile manufacturer and distributor headquartered in Mumbai. It offers a diverse range of commercial vehicles, passenger vehicles, EVs, 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 India’s EV sector. The company offers sustainable transportation solutions in India's growing EV market. Currently, it operates across Asia, Europe, Russia, and the Middle East, Central America, South America, North America, Oceania, and Africa.

For the fourth quarter ended March 31, 2024, the automaker notched up net sales of Rs 119,986 crore, compared to Rs 110,577 crore in the third quarter ended December 2023. YoY net sales were up 13.27% from Rs 105,932 crore. In the preceding quarter ended September 2023, the company recorded net sales of Rs 105,128 crore, and in the quarter ended June 2023, it had net sales of Rs 102,236 crore.

Profit after tax (PAT) was Rs 17,529 crore in the March 2024 quarter, up 145% from Rs 7,145 crore in the December 2023 quarter, and 219% YoY (March 2023) at Rs 5,496. In the previous quarter (June 2023), the multi-utility vehicle maker saw a PAT of Rs 3,301 crore. One major reason for the lower topline and the net loss in Q1 was the BS6 Phase 2 transition, where the company faced issues. 

For the first nine months of the current year until December 2023, the company recorded net sales of Rs 317,942 crore. This is compared to the net sales of Rs 240,035 crore in December 2022 and Rs 200,015 crore in December 2021. In the nine months ending December 2020, the company recorded net sales of Rs 161,167 crore. PAT for the first nine months of FY24 was Rs 14,278 crore.

During this year, the company swung into a profit on consolidated numbers. In the previous year, the company recorded a loss of Rs 2,806 crore. In the nine months ending December 2021 and 2020, net losses came in at Rs 10,317 crore and Rs 5,810 crore, respectively. A variety of reasons, including semiconductor shortages and COVID-19-related issues, were responsible for the losses. 

In March 2024, the company was demerged into 2 separate entities – 1) CV and its related investments; and 2) PV, which includes India PV, EV, JLR, and related investments. Since 2021, the CV and India PV have had separate CEOs. The demerger follows the management’s belief that the two entities can operate on their own with separate cash flows.

Tata Motors currently has an EV mix of about 12%. It expects to raise this to 25-30% by FY25, and to 50% by FY30%. 

In the fourth quarter, Tata Motors’ Jaguar Land Rover sales zoomed 81% to 4,436 units. This is the highest since JLR was introduced to the Indian market. The total global sales of Tata Motors rose 8% to 377,432 units. and passenger vehicles, including EVs, rose 15% to 155,651 units. The company plans to roll out the electric Jaguar in the second half of FY25, which will cater to the premium niche market.

It has inked pacts with Shell and Hindustan Petroleum Corp Ltd (HPCL) to roll out more charging stations.

Analysts are positive about the rising volumes, jump in profits in the first nine months compared to the past year, and losses before that. Since the company gets most of its volumes from the domestic market, and India is on a growth path, they believe Tata Motors is well placed to grow. In the EV space, analysts feel the Punch EV, Tata Curvv EV, and Harrier EV could keep the company ahead of the competition.

Tata Motors has a market cap of Rs 3.38 lakh crore. 

3) Maruti Suzuki India

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

Its products include Alto, Ertiga, Baleno, Super Carry, Eeco Cargo, XL6, Ignis, S-Cross, S-Presso, Celerio, WagonR, Swift, DZire, Ciaz, Eeco, etc. Additionally, Maruti Suzuki provides services such as car finance, retail sales of parts and accessories, driving school, leasing, and fleet management.

Maruti Suzuki operates 2 manufacturing plants in Haryana – in Gurugram and Manesar – and in Gujarat, with a cumulative production capacity of 22 lakh units. It serves customers in Europe, Asia, Oceania, and Latin America. 

For the quarter ended March 2024, the company recorded net sales of Rs 38,471 crore, up 14.79% from Rs 33,513 crore in December 2023. YoY, the figure stood at Rs 32,213 crore, a rise of 19.43%. In the September quarter, the company’s net sales came in at Rs 37,339 crore. This fall in sales in the December quarter came on the back of higher festival season discounts and supply chain challenges.

For the quarter ended June 2023, it registered net sales of Rs 32,385 crore. Profit after tax (PAT) on a consolidated basis for the quarter ended March 2024 was Rs 3,952 crore, up from Rs 3,206 crore in the December quarter. YoY, the number was Rs 2,688 crore, a sharp rise of 47%. In the quarter ended September, it was Rs 3,786 crore, and in the June quarter, it was Rs 2,525 crore.

For the first nine months of FY24, net sales stood at Rs 98,228 crore, compared to Rs 81,684 crore in the corresponding period of the previous year. For the same period in 2021, net sales were Rs 58,287 crore and Rs 43,612 crore in December 2020. PAT for the first nine months ending December 2023 came in at Rs 9,536 crore and Rs 5,576 crore in the same period of the previous year. PAT for the nine months ended December 2021 was Rs 2,004 crore, and for the previous year it was Rs 3,148 crore.

Maruti Suzuki is a latecomer in the EV space. It plans to roll out its first EV in 2025. The EV will operate on a 60kWh battery pack and will offer a range of up to 550 km per charge.

According to reports, the company plans to invest up to Rs 1.25 lakh crore by FY31 to develop 10-11 new models, including six EVs. It expects EVs to account for 15-20% of total sales by FY31.

Also, the company continues to focus on CNG. In Q3, Maruti Suzuki had an all-time high of 30.8% of sales of CNG vehicles. The company expects this number to rise going forward. 

In the quarter ending March 2024, the company recorded total sales (domestic and exports) of 187,196 units, compared to 170,071 units in March 2023, a rise of 10%. In February 2024, total sales were 160,272 units. This works out to a QoQ rise of 16.79%.

Analysts are divided on whether Maruti’s margins will see expansion or not. 

The company has a market cap of Rs 3.90 lakh crore. 

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 TVS Holdings Ltd, earlier known as 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. 

The company also provides 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 ― three in India and one in Karawang, Indonesia.

For the quarter ended March 2024, the company recorded net consolidated net sales of Rs 10,042 crore. This is slightly down from Rs 10,114 crore in December 2023. In the year-ago quarter, net sales stood at Rs 8,031 crore, a rise of 25%. Net sales in the quarter ended September 2023 were Rs 9,933 crore, up 9.68% from Rs 9,056 crore in the June quarter. Profit after tax (PAT) for the quarter ended March 2024 was Rs 387 crore, down 19.21% from Rs 479 crore in the December 2023 quarter. YoY the figure was 15.14% up from Rs 336 crore in March 2023. In the September 2023 quarter, the figure was Rs 386 crore, and in the June 2023 quarter, net profit was Rs 434 crore.

For the first nine months of the current financial year (FY24), TVS Motors notched up net sales of Rs 29,102 crore. For 9 months in FY23, the company had net sales of Rs 23,943 crore, Rs 17,770 crore in FY22, and Rs 13,289 crore in FY21. PAT for the first nine months of the current year stood at Rs 1,367 crore. Higher sales and other income helped in the latest quarter. For the same period of FY23, PAT was Rs 974 crore, up a huge 113.60% from Rs 456 crore in FY22. In FY21, it was Rs 288 crore.

Currently, the company has one product in the e-scooter space. This is the iQube. This model has three variants. These are the TVS iQube Electric STD, TVS iQube Electric S, and TVS iQube Electric ST. Sustained demand for its e-scooter iQube has given TVS Motor 19% market share, pushing it to the second spot below Ola Electric. For the calendar year 2023, the company notched up sales of 187,181 units of iQube, up a huge 216% from 59,165 units in CY22.

The company is planning to invest Rs 1,000 crore for both EVs and ICE vehicles. It remains to be seen whether the Rs 1,000 crore investments planned by TVS Motor in EVs by FY24 will increase the EBITDA contribution; current domestic scooter sales account for 40% of EBITDA.

TVS Motor has a big presence in rural areas with its mopeds, two-wheelers and three-wheelers. So, rural prosperity is an important factor for TVS Motor’s sales. Despite slower sowing this year due to changing weather patterns, the company expects demand to pick up going forward. However, analysts say that it would be difficult to keep up the current growth momentum in the coming year since there are no new triggers in sight. 

For March 2024, TVS Motor registered a 12% growth in sales at 354,592 units, compared to 317,152 units YoY. Total two-wheeler sales (domestic and exports) grew 12% to 344,446 units in March. In February 2024 (QoQ), the company had sales of 368,424 units. This is a degrowth of 3.75% QoQ. Of the sales in March, motorcycle sales grew by a faster 22% to 171,611 units from 141,250 units YoY, while scooter sales inched up by 2% to 131,472 units from 128,817 units YoY.

TVS Motor has a market cap of Rs 1.04 lakh crore.

5) Bajaj Auto

Bajaj Auto Limited, headquartered in Pune, manufactures two-wheelers, three-wheelers, and quadricycles. The company develops, manufactures and distributes automobiles, including commercial vehicles, motorcycles, electric two-wheelers and parts.

Bajaj Auto’s motorcycle lineup includes models such as Boxer, CT, Platina, Discover, Avenger, Dominar, Pulsar, Husqvarna, KTM, and Chetak. Their range of personal and commercial vehicles includes passenger carriers, goods carriers and quadricycles. 

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

For Q4 FY24, the company notched up net sales of Rs 11,555 crore, down 5% from Rs 12,165 crore in the quarter ended December 2023. YoY net sales were up 29.4% from Rs 8,929 crore. In the quarter ended September 2023, net sales came in at Rs 10,838 crore, and for the June quarter, it stood at Rs 10,312 crore. PAT for the quarter ended March 2024 was Rs 2,011 crore, compared to Rs 2,033 crore in December 2023. YoY PAT rose 17.94% from Rs 1,705 crore in March 2024. In the September quarter, it was Rs 2,020 crore, up from Rs 1,644 crore in the June quarter. 

Net sales for the nine months ended December came in at Rs 33,315 crore. For the same period in FY23, it was Rs 27,527 crore. For FY22, it was Rs 25,170 crore, and for FY21, it was Rs 18,720.10 crore. PAT for the nine months ended December 2023 came in at Rs 5,697 crore. while for the same period in FY23, it was Rs 4,355.47 crore. For FY22, PAT came in at Rs 4,639.71 crore, and for FY21, it was Rs 3,306 crore.

Bajaj Auto has a modest presence in the EV space. As per its annual report for FY23, domestic sales of its Chetak EV stood at 8,187 units in FY22 and 36,260 units in FY23. That’s a 342.89% rise. In FY24, it sold 106,431 Chetak EV units. March sales of 17,933 units was its best ever monthly sales. In April 2024, the company sold 7.529 units of Chetak EV.

Every second three-wheeler sold in India is an electric three-wheeler. Bajaj Auto entered this space in June 2023 with the Bajaj RE E-Tec 9.1 passenger EV and the Maxima XL Cargo E-Tec 12.0. Till now, it has sold 4,573 units. By February 2024, it had sold 7,532 units. The electric three-wheeler market saw sales of 571,726 units until February 2024. Bajaj Auto, which was ranked 28 out of 496 players in December 2023, moved up to the 21st spot in February. Yet, it remains a small player. The company has rolled out electric three-wheelers in 23 cities. It plans to take it to 70-80 cities in a couple of months. The company will be spending up to Rs 400 crore on a new unit. 

In view of the above slow growth, analysts will wait to see the volume growth of Bajaj Auto’s electric three-wheelers.

For the quarter ending March 2024, the company recorded sales of 365,904 units, up 25% from 291,567 units YoY, and 346,662 units in February 2024, a rise of 5.5% QoQ. Domestic sales in March accounted for 220,393 units, up 18% YoY, while exports stood at 145,511 units, up 39% YoY.

The company will be launching the world’s first CNG-powered bike. It is expected to be launched by June. The company says this is in line with their efforts to make their products environment-friendly. 

The company has a market cap of Rs 2.54 lakh crore.

N/A - R&D figures not disclosed on a consolidated basis for FY20.

1. For passenger vehicles only
2. For SUVs only

Factors to Consider Before Investing in EV Stocks in India

When looking for the top EV stocks in India, it is important to assess the factors that reflect their potential for growth, sustainability, and profitability in the expanding EV market.

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

• Revenue & Revenue growth

Revenue generation reflects the acceptance of a company's products or services. Higher and faster the revenue generation, better for the company and its stakeholders.

Rising revenue generation compared to competitors indicates the company's increasing market share and resources to undertake more marketing and research and development (R&D) activities.

EVs being a capital-intensive industry, investors would prefer companies with strong revenue growth. They would also look at sustained revenue growth for the company to be able to withstand shocks and the induction of new technologies.

• R&D Expenses

EVs are still evolving, and research and development (R&D) plays a big role in this evolution. So, it is important for companies in this space to have the financial and manpower heft to conduct consistent and relevant R&D. This will help the company keep up with or race ahead of the competition, roll out new features, offer ever greater efficiencies, and reduce costs.

Companies that consistently spend on R&D also show their commitment to adapt to changing scenarios, capitalise on emerging opportunities, and remain relevant in the long term.

• Production Capacity

For an EV company, having a large production capacity is important for long-term, sustained growth.

Large production capacity results in economies of scale and higher profit margins. It also helps the company maintain sufficient inventory levels, minimise lead time, and avoid delays in fulfilling orders. A company with limited production capacity would be hard-pressed to fulfil orders in time, leading to missed sales orders, revenue losses, and loss of reputation.

Also, it is important for the production capacity to be scalable to achieve maximum gains when the opportunity arises. 

• Distribution Strength

Distribution strength indicates a company’s ability to be able to reach its customers or its customers to be able to reach the company’s outlet in the shortest possible time.

For EV companies, distribution strength across urban and rural areas is important for them to service their customers across regions. This increases the company’s market share, visibility, brand value, and convenience to customers.  

• Customer Base

The size of the customer base indicates the demand for the company’s products. For an EV company, the larger the customer base, the greater the demand for its products.

A large and loyal customer base also indicates the brand loyalty that the company and its products enjoy. EVs, being a competitive space, should build on this customer base and widen it, because customer acquisition costs can be formidable in this competitive space.

Finally, a large and loyal customer base can readily take on new products that the company would introduce over time. 

• Product Portfolio

A product portfolio consisting of a variety of models is important for an EV company to thrive. Such a portfolio will address the needs of a wide spectrum of customers. It will reduce the company’s dependence on one or two models to bring in revenues.

Companies with a large product portfolio will be able to attract more customers than those with smaller portfolios because the former gives customers confidence that the company is strong and has the capability to address their needs.

Large EV companies with a large product portfolio will typically meet regulatory norms for emissions, safety, and efficiency. These build up the brand value of the products and help them gain a larger market share. 

Should You Invest in Electric Vehicle Stocks?

When considering investing in EV stocks, it is crucial to assess the risks associated with the industry. One primary concern is that 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, product profiles, 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 undertake thorough research before investing in EV stocks.

Summing Up

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

With the nation's growing emphasis on sustainable transportation and technological advancements in EVs, the market presents investment opportunities. However, before buying EV shares, it is essential to thoroughly analyse market dynamics and consult your financial advisor to make an informed decision.