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Electric Vehicle (EV) theme Stocks listed in India

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What EV buzz is all about?

Electric Vehicle is new buzz in town. I was trying to write about this buzz some time back but wanted to cover each and every aspect of it not from theory but from Investors point of view. As we all know Vehicles (like Bikes, Cars, Trucks, Bus and others) run on Petrol and Diesel.

Both are not environment friendly. Petrol and Diesel are also non renewal source of Energy. Also from India’s point of view Oil demand is met by Imports heavily and it is one of the largest factor in Import bill of the Country.

So there is push from Government of adoption of Electric vehicles and there is also push from Environmentalist to use Electric vehicles. So everyone is trying to use Electric vehicles for commute and we may see slow transition from Petrol or Diesel vehicles to Electric vehicles slowly but surely.

Is Electric Vehicles real in India?

The short answer is Yes. As mentioned above Government is heavily promoting Electric Vehicles for public transport. Many states have started ordering Electric Buses. If you live in Metro cities or other big cities then you may have used or notices Electric Buses on road.

We all have used Toto the smaller electric or battery operated vehicles which are alternative to Auto Rickshaw. Have you wondered the rate at which they have grown in last few years. Everywhere we can see those vehicles for short distance commute. People are heavily using it and this shows how fast the change or adoption can take place in real.

Personal vehicle space is still dominated by Petrol or Diesel vehicles but this may change in future as well. People are buying Electric cars or bikes even if the number is small as of now. But big cities have started seeing transaction in these numbers.

Electric Vehicle stocks in Other Countries

I will cite example of couple of stocks which have minted Gold for investors in Global market. These stocks are not listed in India. Later in the article we will see stocks which are listed in India and can be impacted by Electric Vehicle buzz. But lets see how global market stocks have performed over the years.

Note Electric transition is still going on and far from complete. But investors have made money from investing in these stocks over a period of time.

Tesla and BYD are two prime and top example of companies which have made it to top on Electric vehicle buzz. One if listed in US and other is listed in China. These companies have performed well. The adoption of Electric vehicles in these two countries majorly China is way ahead of the World and we can see repeat of similar growth story in India as well.

Electric Vehicle Stocks in India

The whole Electric Vehicle EV segment can be divided into multiple groups based on the business they perform. As a investor you can explore them and get more idea about the Companies before making an investment decision.

Electric Vehicle Manufacturing Companies

This category lists companies which are listed on Stock Exchanges and are in business of manufacturing Electric vehicles. They are either manufacturing 2 wheeler or 3 wheeler or Cars and Buses. Some of them are analyzed on this website itself. So you can read about them in details as well.

Lithium Ion Battery Manufacturing Companies

Lithium Ion battery is key to Electric Vehicles. Electric vehicles should store charge and then power the vehicle. So that in one recharge it can commute to some distance. Lot of research and innovation is going on to better and make cost effective battery solution to power Electric vehicles.

Below list of Companies are planning to manufacture Lithium Ion batteries in India. Note Lithium Ion as of now is most popular battery option.

Electric Car Charging Infrastructure Companies

It is one of the important aspect of whole EV buzz. Vehicles should be charged. Currently you go to Petrol pumps for petrol and diesel. The availability of these are very important. Everywhere around the corner you see one petrol pump or other which caters needs of the people.

Now if Electric vehicle need to go main stream then you should have proper charging infrastructure so that people do not rely on home itself for charging needs. This power infrastructure is very important for operating Electric buses and other similar vehicles.

Below listed Companies are working on setting up Electric vehicle charging infrastructure

Electric Vehicle Chemical Companies

Coal Tar is one component required by Electric vehicle battery manufacturing process. Thus Companies manufacturing it will get impacted by it. This segment lists the Chemical Companies which will get impacted by transition from petrol and diesel vehicles to Electric vehicles.

Below are the Companies from Chemicals sector which are listed on exchanges

Electric Vehicle Raw material Companies

India lacks in key raw materials like Nickel and Cobalt. But there are two other minerals which will see traction with EV buzz. These two major minerals are Copper (which will definitely get benefit) and to some extend Aluminum just to keep the body light is one of the argument. I believe it will get benefit slightly compared to Copper.

Below are the mining companies which may see traction due to increase in demand of these two raw materials

Conclusion

The transition from Petrol and Diesel to Electric is very important for Auto and Auto Ancillary Company. It will also impact other segments as mentioned above. Many Auto Ancillary companies will see traction and many may struggle due to transition.

So one must evaluate the Auto Ancillary Companies before making an investment. Also EV transition is very important development and may have chance of making one or two multi baggers in process.

Some established player may become big or some new player may emerge as victor in this transition. I have tried to list most companies which caters or will be impacted by EV transition in one way or other. This is not the complete list but it does show key companies and segments impacted by this transition.