Segment wise EV Stocks to Watch

The electric vehicle (EV) revolution is gaining momentum, accompanied by a surge in investor interest. However, the EV landscape is diverse, with a multitude of companies involved in bringing EVs to life. Each segment offers unique invesstment opportunities, and we’ll guide you through exploring them. Let’s delve into the world of EV stocks by category!

EV Manufacturing

EV manufacturers design and produce electric vehicles. With India’s focus on green energy, this segment is set to develop rapidly. The Union Government has approved a scheme to promote electric vehicle manufacturing in India, aiming to position the country as an EV manufacturing hub. This scheme mandates a minimum investment of Rs 4,150 crore (approximately USD 500 million) and allows investors three years to establish local manufacturing for EVs, with domestic value addition (DVA) of 25% by the third year and 50% by the fifth year.

Charging Infrastructure

Charging stations, crucial for EVs, require significant development. In 2021, Minister of Road Transport and Highways (MoRTH), Nitin Gadkari, announced ambitious targets for EV adoption in India by 2030. The government aims for 30% of new private car registrations, 70% of commercial vehicles, and 80% of two- and three-wheelers to be electric by the end of the decade. Achieving these goals necessitates a robust EV charging infrastructure. Although progress is underway, the expansion of this segment needs acceleration to keep pace with the growing fleet of electric cars.

EV Components

Electric vehicles comprise various parts, with not all components manufactured by EV manufacturers. Hence, there exists a segment of companies specializing in EV components. This segment’s growth is intertwined with EV manufacturing and charging infrastructure, amplifying its potential for growth.

Batteries & Chemicals

Lithium-ion batteries are crucial components for electric vehicles, renewable energy storage, and electronics. The government aims to enhance battery usage to 30% by 2030. The EV market is projected to exceed 300,000 units by 2025, with a compound annual growth rate (CAGR) of 59%.

EV Software

EV charging software enables operators and e-mobility service providers to manage all aspects of EV charging, ensuring maximum charger uptime and providing drivers with an exceptional charging experience. Companies like Tata Elxsi and Tata Technologies offer various software solutions for EV manufacturers.

With these insights, investors can navigate the dynamic EV market landscape and identify promising opportunities across its diverse segments.

Following are the category wise EV stocks that are the part of EV ecosystem:

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.