1. Home
  2. /
  3. Investing
  4. /
  5. Electric Vehicle Market In...

Electric Vehicle Market In India And Best EV Stocks In India

  1. Home
  2. »
  3. Investing
  4. »
  5. Electric Vehicle Market In India…
4 Best Electric Vehicle stocks in India | EV Stocks to Buy

Come April 2023, India is implementing the Phase II of BS6 vehicular emission norms, equivalent to Euro VI norms. As a result, many old cars will be phased out, and other vehicles will get costlier due to related hardware and software changes.

Why is it important here in this topic? Because the price spread between IC engines and battery electric vehicles will reduce, indirectly benefiting the growth of the Electric Vehicles market and Electric Vehicle stocks in India.

Evolution of the Electric Vehicle Market in India

Unlike in western countries, where the EV revolution is all about 4-wheelers (4W), India’s EV revolution is slightly different. It is currently driven by shared mobility, i.e., the three-wheeler (3W) EV segment. According to Niti Aayog’s 2020 report, the 3W e-rickshaw contributed 79% of all EV presence in India. The sector has emerged as a preferred mode of transport within the city and towns as it offers a better value proposition. 

The second-most popular segment, the two-wheeler (2W) EV segment, has a market share of 17% of the EV population but is one of the fastest-growing EV segments. Between 2016-2020, the 2W EV segment has grown at a CAGR of 62%. And the entry of conventional players like TVS, Hero, and Bajaj, along with pure 2W EV manufacturers like Okinawa, OLA, Ather, Revolt, and others, have spiced up the segment.

Now, the 4W EV segment remains in focus and gets most of the attention from investors and industry people. India had its first stint with 4W EV in 2001 when Mahindra launched Reva, but it failed to take off due to higher pricing and design limitations. The road to 4W Electric Vehicle adoption was slow in India due to factors like range anxiety, lack of Electric Vehicle charging infrastructure, and pricing. Still, things changed when Tata Motors launched the EV version of its popular SUV Nexon at an introductory price of ₹13.99 lahks in 2019.

EV sales in 2022 recorded a 210% increase to reach 1 million units for the first time, and the 4W EV segment clocked cumulative sales of 37,792 units, where Tata Motors’ market share is 80%.

Despite the early challenges, the Indian Electric Vehicle market has evolved rapidly and is expected to grow at a CAGR of 36% through 2030. Niti Aayog aims to achieve EV sales penetration of 70% in commercial vehicles, 30% in private vehicles, 40% in buses, and up to 80% in two and three-wheelers by 2030.

Why is India eyeing rapid Electric Vehicles adoption?

India is a signatory to the Paris Climate Agreement, in which more than 170 countries pledged to limit global warming to below 2 degrees Celsius, compared to the pre-industrial era. And, at COP21, India committed to reducing carbon footprints by 33-35% by 2030 below 2005 levels. So, why is Electric Vehicles adoption essential?

The transport sector in India is the largest consumer of fossil fuels and the second-largest emitter of CO2 worldwide. And, to meet the pledge to reduce CO2 emissions by 2030 and limit global warming, the government is focusing on electrifying the road transport sector. It has notified the National Electric Mobility Mission Plan 2020. It seeks to enhance the nation’s energy security, mitigate the adverse impact on the environment from the road transport sector, and promote domestic manufacturing of EVs.

Read how having a large carbon footprint can be detrimental for India Inc.

Government Initiatives to Promote Electric Vehicle Adoption

For the rapid adoption of EV and domestic manufacturing, the government has focused more on targeted policy and financial incentives, such as:

FAME II scheme– As Electric Vehicles are priced higher than IC engine vehicles, the government is offering customers an upfront discount of up to 40% on the cost of the vehicle. However, to avail of the subsidy, the EV OEM or manufacturer has to prove that 50% of vehicle components are manufactured in India.

De-licensed public charging infrastructure: Any individual/entity is now allowed to set up public charging stations for EVs meeting the government’s technical and performance standards.

Other financial incentives: The government has announced a discount on the interest rate while availing a car loan to purchase an EV, a total exemption of road tax, a one-time registration fee waived, scrapping incentives provided on deregistering old ICE cars, etc.

Best Electric Vehicle Stocks in India (EV Stocks)

The stock market has shifted the focus toward auto companies manufacturing EVs and EV components. Many conventional players who have entered the electric vehicle market in India have seen their stock prices perform better than their peers. For instance, Tata Motors stock has given a CAGR of 28% in the last three years.

Let’s look at the Top Electric Vehicle stocks other than OEMs to consider.

Samvardhana Motherson International Ltd

Motherson Sumi is a leading global vehicle component manufacturer and recently forayed into the Electric Vehicle segment. The company is witnessing increased order book size in the EV segment, and in H1 FY23, the share of Electric Vehicles in the order book stands at 37%, up from 27% in the same period the previous year. The total order book during H1 FY23 amounts to Euro 18.2 billion.

Amara Raja Batteries

Amara Raja Batteries, one of the Electric Vehicle stocks, offers solutions in battery storage systems for EVs. It has invested in shoring up its capabilities. The company has a portfolio of 0.5 Kwh-21 Kwh batteries for e-mobility and energy storage applications.

The group has invested €10 million (~ Rs. 88,27,88,122 as of 16th Jan 23) in InoBat Auto, a European company focused on R&D activity in batteries for Electric Vehicles and the production of Li-ion batteries. It is also investing ₹7,000 crores production of Li-ion cells.

Sona Comstar

Sona Comstar is a significant player in the Electric Vehicle market in India and currently earns 25% of revenue from supplies to EV players in key markets in Europe, Latin America, China, and India. The company plans to increase the share of its global EV business in its revenue to 45-50% by 2025.

Lumax Auto

A Tier-1 supplier to auto OEMs, Lumax Auto Technologies is investing heavily in expanding its product portfolio and manufacturing EV-specific components. The company has set up a 50-50 JV Alpine CoJapan to manufacture and sell electric parts related to ICE and EV. Lumax Auto Technology, one of the Electric Vehicle stocks has given a CAGR of 33% in the last three years.


With the government’s hand-holding through several policy initiatives, the Electric Vehicle segment in India is expected to mature rapidly. Through economies of scale, EV component manufacturing companies will become more competitive in the global market, benefiting Electric Vehicle stocks in India. And as the market matures, more companies are likely to enter the market, and Electric Vehicle Stocks will list in India.

Disclaimer Note: The stocks and financials mentioned in this article are for education purposes only. They shouldn’t be considered as a recommendation by Research & Ranking. We will not be liable for any losses that may occur. The securities quoted, if any are for illustration only and are not recommendatory.


How big is the Electric Vehicle (EV) market in India?

According to fortunebusinessinsights.com, the India Electric Vehicle market size in 2021 was $1.45 billion and is expected to grow at a CAGR of 36% through 2030.

Which is the best Electric Vehicle stocks (EV Stock) in India?

Electric Vehicle Stocks (EV Stocks) like Tata Motors will benefit the most due to established products in passenger and commercial vehicle segments.

Why will Electric Vehicle stocks be successful in India?

Electric Vehicles provide a considerable cost advantage in terms of cost-per-km, and India aims to achieve EV sales penetration of 70% in CV, 30% in PV, 40% in buses, and up to 80% in 2 & 3W by 2030.

Read more: About Research and Ranking

How useful was this post?

Click on a star to rate it!

Average rating 4.5 / 5. Vote count: 17

No votes so far! Be the first to rate this post.

+ posts
Share on:

Want A Personalized Portfolio of 20-25 Potential High Growth Stocks?

*T&C Apply

Chat with us