The Camero Scope Automobile Industry Are Electric Vehicle Stocks A Good Investment

Are Electric Vehicle Stocks A Good Investment

Overview of the Top Electric Vehicle Manufacturers in India

By this point, the electric vehicle had taken the nation by storm. You may occasionally notice an EV company generating news in the financial sector. This demonstrates how the EV revolution has nearly overtaken the country.

The domain’s footprints are prepared to take the market in India. It wouldn’t be overstating things to say that there may come a time when practically all of the automobiles sold in India will be electric vehicles, given the way the enthusiasm is building among auto aficionados. If we check at the statistics, we can see that Graphite India and HEG were the two main firms in this field in 2017, when the nation first began to investigate and expand in the EV, but if we take a look at these stocks now, both have increased by over 800% in a year. Let’s delve into the article’s intricate elements to better comprehend the industry’s potential in the upcoming years:

Best Indian Electric Vehicle Companies for Investment

EV stocks are unquestionably your hot bait if you’re a real-time investor looking for a trustworthy industry to invest in going forward. The EV stock growth in India would enable you to prosper financially even during the market’s decline in 2022.

In order to offer you a quick overview of which stocks should be likely candidates to fit in your portfolio and provide you with the highest returns, let’s find out the top EV firms and their market potential:

Company Name Last Price as of Nov 25, 2022(INR) 1 Year Share Return(%) 5 Year Share  Return (%)
Amara Raja Batteries 646.50 4.27 -18.74
Ashok Leyland 148.75 19.86 20.20
Exide Industries 185.55 12.42 -10.54
Graphite India 380.75 -11.52 -34.79
High Energy Batteries 317.35 -5.61 358.60
Himadri Speciality Chemical 102.95 128.27 -38.35
Indian Oil Corporation 73.35 -5.96 -44.01
Mahindra & Mahindra Limited 1079.90 28.01 116.41
Maruti Suzuki India 9016.60 27.26 5.99
Olectra Greentech 509.10 -36.69 136.35
Tata Motors Limited 433.25 -4.61 -3.60
Tata Power Company Limited 224.10 -0.84 134.05

Disclaimer: The stocks mentioned are illustrative and not suggested. Future returns cannot be predicted by past results.

Overview of the Indian Electric Vehicle Market

The year 2022 will be a turning point for the electric car market in India because to recent changes in the sector. Additionally, the nation will have almost 100% electric mobility by the end of the next ten years, according to the current union budget, which adopted a policy for the EV infrastructure and the battery business. Because of this, real-time investors find the sector to be a compelling incentive.

It’s also noteworthy that India’s automobile industry accounts for 49% of manufacturing GDP and 7.5% of the country’s overall GDP. The nation’s economy is significantly impacted by this. This suggests that, as they follow the trends, numerous auto ancillaries and associated sectors will grow along with the EV industry in the upcoming years.

India is also the world’s largest producer of 2W AND 3W, the second-largest manufacturer of buses, and the greatest producer of various vehicles like tractors. According to industry trends, this will result in a vehicle penetration rate of 72 automobiles per 1000 persons by the end of 2025. Additionally, India contributes nearly 40% of the $31 billion in worldwide engineering sales. Additionally, the automotive industry accounts for around 8% of the country’s R&D spending.

But up till now, India has only had EV versions of 2 and 4 wheel fossil fuel powered vehicles. High-performance luxury models or even supercars like those Teslas are yet to enter the Indian auto market.

However, the market’s enormous and untapped potential cannot be disputed. With the advent of EVs, the automobile sector is also anticipated to have a huge rise in the Indian market.

Why Invest in the Top Electric Vehicle Companies in India?

It is conceivable that an investor with a long time horizon would keep an eye on the Indian auto sector. Let’s take a look at some of the following justifications for buying EV stocks in India in 2022.

The 2016–26 Automotive Mission Plan (AMP) encapsulates the goals shared by the Indian government and the car sector. The industry aims to reflect on its scale, its contribution to national growth, as well as its presence and global rivalry.
In the next ten years, the automotive industry is predicted to generate over 65 million direct and indirect jobs. This provides a profitable reason for investors to think about investing in the auto sector.

According to the AMP 2016-26, the industry is expected to contribute more than 12% of the nation’s GDP and make up at least 40% of the manufacturing sector by the end of 2026. The automobile industry and India will change as a result of this number.
One important point to make is that the nation’s plans for internal lithium-ion battery production could eventually lower the cost of EVs, reducing both dependence and the unsettling import taxes. Hence, there will soon be a significant market in India.

EVs in India are thought to hold the key to the future of the auto industry. With the current weather and worries about it, EVs are set to take over as the industry’s mainstay in the years to come. Given that India’s EV business appears to have a bright future, this must be a target for a savvy investor.
Advice for Investors Considering EV Stocks:

Research: It is advised to conduct thorough study before making an investment in an Indian automaker. When investing in EV stocks, it’s critical to comprehend the companies’ potential for financial growth rather than basing your decision on historical statistics.

Watch out for industry leaders: India’s auto industry has had significant growth and is expected to continue experiencing exponential expansion. As a result, it’s crucial for investors to research the industry’s trending businesses and the market competitiveness to ensure high future returns.
Verify government investment activity: These equities are probably going to determine the demand-supply balance in the Indian market. The national government has been heavily promoting EV drives, particularly for in-house production. In India, the market for electric vehicles has significantly expanded. Additionally, the industry is poised for development because to cooperation between the Indian government and automakers.
Purchases and mergers: Mergers and investment plans that are currently in the works with domestic corporations are another driver that propels the investment sector. An investor must take into account these vast factors in order to compile a thorough analysis of where to park their investments in the market.

The demand for electric vehicles and renewable energy has driven up the prices of electric vehicle stocks nationwide and among automakers. Although these industries stand to gain from the intended goal, it will be challenging for normal industry participants to enter. The EV sector has entered a new age thanks to the global powerhouse Tesla.

In terms of how the market is doing, the epidemic has sparked a demand for goods that may assist reduce the worrying pollution levels, and electric vehicles are a remarkable way to do so and a step towards sustainable growth.

However, from an investing perspective, given the country’s recessionary trend, it would be prudent to weigh the pros and cons to determine whether the country has the potential to meet the benchmark in question. If not, the numbers would only hold water on paper. As a result, it is recommended to invest cautiously and conduct thorough research before making a wise investment choice.

Important points to bear in mind

1. Avoid blindly adhering to hot tips

No matter how reliable the source, never take a stock marketing suggestion at face value without doing your own in-depth study. Always choose your stocks after thorough investigation and evaluation of the firms’ and their employees’ performance. While some advice may prove to be of great value to you, the incorrect advice may swiftly put you into danger.

2. Take losing stocks out of your portfolio

A stock’s eventual recovery after a steep decline cannot be predicted at all. Recognize that it is crucial to be realistic about what is achievable and what is not in the stock market. Therefore, admit your error and sell the underperforming stock as soon as you realise it is part of your portfolio to stop additional losses.

3. Don’t abruptly go over your investment budget.

Although long-term investments are undoubtedly superior to other types of investments, you shouldn’t overspend your investment budget hastily. Instead, pick a specific sum and spread it among several reputable stocks. Spend your money evenly across several high-performing stocks and shares rather than just one stock.

Disclaimer: The stocks mentioned are illustrative and not suggested. Future returns cannot be predicted by past results.

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