India’s electric vehicle (EV) market is poised for significant growth in the coming year, with S&P predicting it will triple in size. This surge is expected to open up lucrative opportunities for companies in the EV ecosystem, including manufacturers, battery producers, and infrastructure developers. Investors are now looking closely at stocks positioned to benefit from this rapid expansion.
What happened
Battery electric vehicles (BEVs) in India are set to see a nearly threefold increase in production by calendar year (CY) 2025, following a slowdown in demand in CY 2024. S&P Global Mobility projects BEV production will rise to 377,000 units in CY 2025, up from 130,000 units in CY 2024, capturing 6.6 percent of the total light vehicle production.
This growth is driven by major automakers like Maruti Suzuki, Hyundai, Mahindra & Mahindra, Tata Motors, and JSW MG Motor, all of which are launching new electric passenger vehicles.
The industry is also preparing for the debut of up to 19 new electric vehicle models in 2025, including Maruti Suzuki’s eVitara and Hyundai’s electric Creta. These projections are based on the success of the production-linked incentive scheme, advancements in battery technology, and improvements in charging infrastructure.
By CY 2030, light electric vehicle production is expected to reach 1.4 million units, with a market share of 19.8 percent, and the government’s goal of 30 percent market share is anticipated to be achieved by 2035.
Stocks to Benefit
1. Tata Motors Ltd
With a market capitalization of Rs.2.76 lakh crore, Tata Motors Ltd’s share price closed at Rs.754.00 per share on Friday, rising 1.78 percent from its previous close.
Tata Motors is making significant strides in the electric vehicle (EV) market, targeting the release of 10 new battery-electric models by 2025 while maintaining a dominant 70% share in India’s EV segment. The company has unveiled a cutting-edge EV platform aimed at improving driving range and features.
Additionally, Tata Motors plans to build a lithium-ion cell plant in Gujarat with an initial capacity of 20 GWh, backed by an investment of roughly $1.58 billion. This effort aligns with a larger strategy to establish a self-reliant EV supply chain in India, leveraging synergies across the Tata Group.
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2. Maruti Suzuki India Ltd
With a market capitalization of Rs.3.44 lakh crore, Maruti Suzuki India Ltd’s share price closed at Rs.10,957.95 per share on Friday, rising 0.57 percent from its previous close.
Maruti Suzuki is gearing up for its electric vehicle (EV) debut with plans to introduce the eVX, its first electric SUV, in January 2025. Equipped with a 60 kWh battery, the eVX is designed to deliver a range exceeding 500 kilometers. The automaker aims to launch six electric models by 2030, catering to both domestic and international markets, including Europe and Japan.
To support its EV expansion, Maruti is planning a widespread charging network with approximately 25,000 stations across India. The eVX will be sold through the brand’s premium Nexa outlets, with a focus on providing a seamless customer experience, including solutions to address range concerns and charging accessibility.
3. Hyundai Motor India Ltd
With a market capitalization of Rs.1.45 lakh crore, Hyundai Motor India Ltd’s share price closed at Rs.1,794.00 per share on Friday, rising 0.91 percent from its previous close.
Hyundai Motor India is gearing up to broaden its electric vehicle (EV) portfolio, with plans to introduce five new EVs by 2030. The first in this lineup, the Creta EV, is set to launch in January 2025, featuring a 45 kWh battery and an estimated range of approximately 450 kilometers.
In addition to the Creta EV, Hyundai is working on other models such as the Inster EV, Venue EV, and Grand i10 Nios EV, aiming to strengthen its position in India’s EV market. To bolster its EV supply chain, the company has collaborated with Exide Energy Solutions to produce batteries locally. Hyundai also intends to establish 600 fast-charging stations across the country by 2031 to meet the rising demand for electric mobility.
Written by – Siddesh S Raskar
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