Five Stocks to benefit from EV Revolution in India
A state of emergency was declared in different parts of the world recently either due to huge fires or heavy rainfall. There were wildfires in California, Turkey, Greece and Canada while there were floods in different parts of Europe. Many attribute these events to climate change, with automobiles being one of the biggest culprits in altering the climatic condition.
Under these circumstances, Electric vehicles are going to gain widespread recognition in the world including India. Adoption of electric vehicles among the masses will ensure that EV stocks will be the trend on the bourses and will remain the same for a while.
When it comes to EVs, it is not only the carmaker but the entire ecosystem including companies focused on manufacturing its components are going to gain. Therefore, it is advisable to play the EV trend by buying the partnership in the companies involved in the supply chain. It could be a company doing business in making lithium batteries, charging stations, related parts, and more.
You might be familiar with many names like Tata Motors, Ashok Leyland, Exide Industries, and Greaves Cotton but other players are also exhibiting opulent growth.
Here are five EV manufacturer stocks you can benefit from:
Greaves Cotton manufactures engines, engine applications, and trades power tillers, engine spares, electric vehicles, and infrastructure equipment, among other things.
Exide Ltd. is India's leading storage battery manufacturer, dominating practically every category in the automotive, industrial, and submarine industries.
Tata Motors and Jaguar Land Rover are both aiming to electrify their fleets. Tigor EV and Nexon EV are now the industry’s leading EV models in India. In 2020, it sold 2,600 electric vehicles, resulting in a market share of 63 per cent.
GG Engineering is one such player, which had recently announced the launch of its new product line, the EV Charging Station, from 3 KW to 22 KW. These stations shall be used to charge 2/3/4 wheeler vehicles. The production and distribution network will start in three months. In addition, GG Engineering had launched India’s first fully- automated and smart RVMs. GG Engineering has an order from the western railway to install RVMs across stations with advertisement rights. The company has also agreed with Panasonic India Pvt. Ltd to procure advertisements for plastic bottle crushing machines of GG Engineering Ltd. The new progressive Electric Vehicle Policy unveiled by the Maharashtra government provides the right impetus for a company like GG Engineering.
Tata Power primary business is the generation, transmission, and distribution of electricity. In future, the company intends to shift its capacity concentration away from thermal sources and towards clean energy sources. It aims to increase the share of clean and green capacity to 60 per cent of its total capacity by 2025, 80 per cent by 2030, and achieve carbon neutrality by 2050 by phasing out thermal projects.