The Indian electric vehicle market is accelerating at an unprecedented pace, which is primarily fueled by government initiatives, growing environmental awareness, and technological advancements. Ambitious plans to reduce carbon emissions and boost sustainable transportation will propel the EV industry in India exponentially in 2024. This is a golden opportunity for investors to invest in the booming EV sector.
In this article, we explore the best EV stocks in India for 2024 with companies leading the pack: Tata Motors, Maruti Suzuki India, Bajaj Auto, Mahindra & Mahindra, and TVS Motor Company, which are changing the face of transportation in India through innovative EV offers and strategic growth plans.
Best EV Stocks in India 2024
| Rank | Company Name | Market Capitalization (₹ Crores) | Core Segment | Key Strength |
|---|---|---|---|---|
| 1 | Tata Motors | High | EV Cars & Commercial Vehicles | Market Leader in EV Segment |
| 2 | Maruti Suzuki India | High | EV Cars & Hybrid Vehicles | Strong Distribution Network |
| 3 | Bajaj Auto | High | Electric Two-Wheelers | Iconic Chetak Electric Scooter |
| 4 | Mahindra & Mahindra | High | EV Cars & Commercial Vehicles | Focus on Affordable EVs |
| 5 | TVS Motor Company | Moderate | Electric Two-Wheelers | Rapid Expansion in EV Scooters |
1. Tata Motors
Tata Motors remains the undisputed leader in the electric vehicle segment in India. It has a strong lineup of electric cars and commercial vehicles. Models like Tata Nexon EV and Tata Tigor EV have set benchmarking standards for affordability and performance in the market. Tata Motors’ first-mover advantage, consistent growth, and extensive range of EVs make this company a top investment option.
Market Position:
- Market Capitalization: Tata Motors leads the Indian EV space, driven by strong sales and market share.
- Revenue Streams: The company earns from EV passenger cars, buses, and commercial vehicles.
Growth Potential:
- Expanding Portfolio: Tata plans to launch more EV models, targeting mass and premium segments.
- Charging Infrastructure: Partnerships with Tata Power for charging networks strengthen its ecosystem.
2. Maruti Suzuki India
Maruti Suzuki will join the Indian EV market with an affordable electric car, aiming to capture the country’s largest car market. The company is also investing in hybrid vehicles to meet expectations from the transitioning markets.
Market Position:
- Market Capitalization: Maruti Suzuki is among the top players in the automobile industry by market cap.
- Revenue Streams: Revenue is primarily from passenger car sales, with a growing focus on EVs.
Growth Potential:
- Upcoming EV Launches: Maruti plans to launch its first EV, based on the WagonR platform, aiming for the mid-2024 market.
- Hybrid Technology: Investments in hybrid cars bridge the gap for consumers transitioning from conventional to electric vehicles.
3. Bajaj Auto
Bajaj Auto, the household name for two-wheelers, is doing well in the electric vehicle segment with its Chetak Electric scooter. The company will be focusing on expanding the electric two-wheeler offerings that will cater to urban commuters. Bajaj Auto’s strong brand presence and strategic EV rollout make it a compelling choice for investors.
Market Position:
- Market Capitalization: Bajaj Auto holds a significant share in the two-wheeler industry, with a growing EV portfolio.
- Revenue Streams: Revenue comes from two-wheelers, three-wheelers, and electric scooters.
Growth Potential:
- Chetak Expansion: Bajaj is scaling up production and distribution of its Chetak Electric scooter to capture urban markets.
- Focus on Exports: The company is exploring export opportunities for its EV models, boosting global revenue.
4. Mahindra & Mahindra
Mahindra & Mahindra is a diversified player in the EV space, with electric cars, three-wheelers, and commercial vehicles. It is a preferable brand because of its focus on affordability and utility for diverse customer segments. Mahindra’s positioning on innovation, affordability, and utility vehicles puts it in the best possible position for sustained growth in the EV space.
Market Position:
- Market Capitalization: Mahindra ranks high in the auto industry with a strong focus on electric and hybrid vehicles.
- Revenue Streams: Revenue comes from electric SUVs, three-wheelers, and farm equipment.
Growth Potential:
- XUV.e Series: Mahindra’s upcoming electric SUVs, including the XUV.e8, are designed to cater to urban and semi-urban markets.
- Commercial EVs: The company is ramping up production of electric three-wheelers and cargo vehicles.
5. TVS Motor Company
TVS Motor Company is one of the most prominent electric two-wheeler manufacturers, with products such as the iQube Electric gaining popularity. The company is aggressively adding to its EV portfolio, competing with new-age startups. TVS Motor’s thrust on innovation, affordability, and strategic expansion make it a formidable player in the two-wheeler EV space.
Market Position:
- Market Capitalization: TVS has a moderate market cap, reflecting steady growth in the EV segment.
- Revenue Streams: Revenue is driven by electric scooters, motorcycles, and mopeds.
Growth Potential:
- iQube Expansion: TVS is scaling up the availability of its iQube Electric across India, targeting metro and Tier-2 cities.
- Global Reach: The company is exploring opportunities in international markets for its EVs.
Why Invest in EV Stocks?
The EV industry in India is poised to grow at over 35% CAGR in the next decade, thus offering ample investment opportunities. The reasons to invest in EV stocks are as follows:
- Government Support: Incentives through FAME II and tax benefits focus on encouraging the adoption of electric vehicles.
- Growing Demand: Environmental awareness and savings from reduced fuel consumption promote the sale of electric vehicles.
- Advancing Technologies: Improved battery technology, excellent infrastructure for charging, and further enhancement in market potential.
- Long-term growth: EV stocks are stable and have a high return as the market matures.
Conclusion
The Indian Electric Vehicle Market is expected to be growing exponentially in 2024. The best EV stocks in India—Tata Motors, Maruti Suzuki India, Bajaj Auto, Mahindra & Mahindra, and TVS Motor Company—offer a mix of stability, innovation, and growth potential.
These include the leadership of Tata Motors in electric cars, upcoming affordable EVs from Maruti Suzuki, iconic electric scooters from Bajaj Auto, Mahindra’s focus on utility vehicles, and the expansion of the two-wheeler portfolio at TVS Motor. This is how you can join in on the nation’s journey toward sustainable transportation.
Frequently Asked Questions (FAQs)
Which is the best EV stock in India for 2024?
Tata Motors is the best EV stock, given its leadership in the electric car segment.
Why invest in Bajaj Auto?
Bajaj Auto’s focus on electric two-wheelers, particularly the Chetak, makes it a strong player in the EV market.
How is TVS Motor expanding its EV portfolio?
TVS Motor is scaling its iQube Electric and exploring global markets to strengthen its EV segment.
Is Maruti Suzuki a reliable EV investment?
Yes, Maruti’s strong brand presence and upcoming EV launches make it a promising long-term investment.
What makes Mahindra & Mahindra a good investment?
Mahindra’s focus on affordable electric SUVs and three-wheelers position it well for growth in diverse markets.
