Best EV Stocks in India 2024

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-

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:

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.