EV Stocks: Popular Stocks in EV Software, Batteries, Components, Infrastructure and Manufacturing

India’s electric vehicle (EV) industry is booming, driven by government support, growing awareness about environmental issues, and advancements in technology. Programs like the FAME scheme (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) aim to boost EV use, setting India on a path towards greener, more innovative transportation.

India has ambitious targets for EV sales by 2030: 30% of private cars, 70% of commercial vehicles, 40% of buses, and 80% of two- and three-wheelers. This means the country aims to have around 80 million EVs on the road by then. Additionally, through the ‘Make in India’ initiative, India seeks to manufacture these EVs domestically. 

In this article, we are going to learn about types of EV stocks in India, including those in software, batteries and chemicals, components, charging infrastructure, and manufacturing.

Overview of EV Software

EV charging software is a digital solution designed to streamline and optimise the operations of electric vehicle (EV) charging stations. This software supports a range of critical functions, from real-time monitoring of station status, performance, and energy usage to the efficient management of billing processes for EV charging sessions. It also enables the adjustment of charger settings to meet specific operational goals, allowing for better energy efficiency and system optimisation. 

Best EV Software Stocks – Based on 5-Yr CAGR

Note: The EV software stocks list provided here is sorted as per the 5-yr CAGR as of November 12, 2024. 

Overview of Batteries and Chemicals

Electric vehicle (EV) batteries are made using a range of chemicals and are available in different formats. Several companies play key roles in the EV battery industry. Some of the companies are- Amara Raja Batteries, based in India, which produces automotive and industrial batteries that are certified for EVs. Tata Chemicals in India has partnered with international battery makers and invested in a plant in Dholera, Gujarat. These companies are essential to the ongoing growth and development of the EV battery sector.

Best EV Batteries and Chemicals Stocks – Based on 5-Yr CAGR

Note: The EV Batteries and chemical stocks list provided here is sorted as per the 5-yr CAGR as of November 12, 2024. 

Overview of EV Components

An electric vehicle (EV) consists of key components that work together for optimal performance. The battery stores energy, typically lithium-ion, to power the motor and accessories. The charger converts AC power to DC to charge the battery, while the inverter changes DC power from the battery into AC to run the motor. A DC/DC converter reduces high-voltage DC to power accessories and recharges the auxiliary 12V battery, which supports basic functions like lights. The Vehicle Control Unit (VCU) manages the vehicle’s systems, including the motor and air conditioning. The thermal management system ensures the battery and motor remain at the right temperatures while the reduction gear delivers the motor’s power to the wheels efficiently.

Best EV Components Stocks – Based on 5-Yr CAGR

Note: The EV components stocks list provided here is sorted as per the 5-yr CAGR as of November 12, 2024. 

Overview of EV Charging Infrastructure

India’s public EV charging network grew significantly, from 1,800 stations in February 2022 to 16,347 by March 2024. Despite this progress, a report by Forvis Mazars cautions that it’s still not enough for future needs. By 2030, India could have around 50 million EVs on the road, which would require around 1.32 million charging stations. To meet this, the country would need to add roughly 400,000 chargers each year. The Ministry of Heavy Industries has already approved 2,877 charging stations across various states, along with 1,576 stations along 16 highways and 9 expressways.

Best EV Charging Infrastructure Stocks – Based on 5-Yr CAGR

Note: The EV charging infrastructure stocks list provided here is sorted as per the 5-yr CAGR as of November 12, 2024. 

Overview of EV Manufacturing

Electric vehicle (EV) manufacturing involves designing, developing, and building EVs with advanced technology to support a more sustainable future. Key aspects include battery manufacturing, where battery management systems play a vital role in lowering costs and improving battery efficiency. EVs are typically assembled at plants that source parts from various suppliers. Reliable charging infrastructure is essential for EV growth, with options ranging from Level 1 and Level 2 to DC fast charging. Additionally, EV manufacturers must navigate strict regulations to bring new models to the market.

Best EV Manufacturing Stocks – Based on 5-Yr CAGR

Note: The EV manufacturing stocks list provided here is sorted as per the 5-yr CAGR as of November 12, 2024. 

Major Investments Fueling India’s Electric Vehicle Sector

India’s electric vehicle (EV) industry is seeing strong investment and partnerships aimed at building an EV ecosystem. Tata Motors plans to invest ₹18,000 crore ($2.16 billion) by FY30, targeting 30-40% of its sales from EVs. Ather Energy, now valued at $1.3 billion, secured ₹600 crore ($71 million) in funding from the National Investment and Infrastructure Fund, making it India’s fourth unicorn of 2023.

In April, Uno Minda collaborated with China’s Suzhou Inovance Automotive Co. to manufacture EV components, and Okaya EV introduced a premium brand, “Ferrato,” to expand its electric two-wheeler lineup. Ola Electric, also set for an IPO, introduced “Raahi,” an electric autorickshaw, while leading patent publications with 205 new EV-related technologies. Indian Oil Corporation inaugurated its first battery-swapping station in Kolkata in collaboration with Sun Mobility. Mahindra & Mahindra’s new plant in Maharashtra aims for a production capacity of 200,000 EVs annually by 2027-2029, expecting EVs to make up 30% of its sales by 2030.

Government’s Strong Push for Electric Mobility in India

The Indian government is firmly committed to reaching 30% electric vehicle (EV) mobility by 2030. The recent budget exempts customs duty on capital goods and machinery imports required for manufacturing lithium-ion batteries to support EV production.

The FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) Scheme, launched in April 2019, has a budget of ₹10,000 crore ($1.43 billion) and is focused on public transport electrification. It aims to subsidize demand for electric buses, two-wheelers, three-wheelers, and cars while also funding EV charging infrastructure. So far, under FAME II, manufacturers have received around ₹5,294 crore ($637 million) for over 1.17 million EVs sold as of December 2023. A new initiative will replace 800,000 diesel buses, about one-third of all buses, with electric models over 7 years to reduce emissions and attract investment in EV infrastructure. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.