The electric car revolution is far from being a reality, but it’s here, and it will have a significant impact on the Indian automotive landscape in the next few years. With the global average price of lithium-ion batteries at an all-time low, automakers are gearing up for the launch of their own electric vehicles, with the Tesla Model 3 being the best-known player in the space. We’ve also seen a host of electric vans and trucks coming to India, with several of them being supplied by the likes of Mahindra and Mahindra, Tata Motors, Honda, and Ashok Leyland.
The country is aiming to ramp up its electric vehicle fleet and the government has been talking about allocating more funds for this purpose. To achieve this, the Central government has declared that it will provide a subsidy of up to ₹50000 per car until 2019, which is the current FAME (Faster Adoption and Manufacturing of Electric Vehicles) target. The government is now talking about doubling that amount to ₹10 lakh. This has increased the number of electric vehicles (EVs) in the country by 10 times from today’s 25,000.
List of the best manufacturers of electric vehicles in India 2021 – Manufacturers of electric vehicles in India: New technologies are constantly emerging in the field of transport all over the world. These alternative transportation technologies rely heavily on electric vehicles, and many companies are jumping on board to gain momentum before the industry radically shifts away from traditional fossil fuels.
These changes can also be seen as an attempt by existing companies in the electric vehicle segment to catch up with Tesla and the bar they have set before it is too late. Today, we look at the electric vehicle segment in India and the best EV stocks in India that investors should look for in this segment.
Contents
Why electricity and what is the plan for the future?
One of the main reasons why countries are being forced to switch to electric solutions is climate change. According to the Environmental Pollution Index (EPI) 2020, India is ranked 168 out of 180 for air quality. One strategy to counter this is the introduction of electric vehicles (EVs). This will not only benefit the environment but also the overall economic health of India. India currently imports crude oil, leaving it with a deficit of about $60 billion.
The government’s goal is 100% electrification by 2030. This is a significant objective given the early stages of implementation that we are currently at.
According to a report published by McKinsey & Company, the penetration rate of electric vehicles in India is less than 1%. According to Bloomberg, just over 8,000 electric cars were sold in India in the six years to October 2019. Compared to countries like China, these sales are achieved in less than 2 days.
Some state governments, aware of their role, have tried to remove one of the main barriers to purchasing an electric vehicle, namely the high initial cost. This is the case in Maharashtra, where subsidies of Rs 1 lakh have been announced for electric vehicles. With this, Maharashtra has recorded the highest sales volume in the Indian electric vehicle market since 2017. The Government has also recognised that in the initial phase it is best to concentrate on the public transport system.
Indeed, the purchase of electric vehicles in the private sector depends on other factors such as attractiveness, etc. The public transport system, which is one of the most widely used in a country like India, is bound to give a huge boost to the sector.
Best Electric Vehicle Stocks in India – Top Vehicle Manufacturers
The Indian electric vehicle industry is still in its infancy and there is no established market leader for all types of vehicles. There are more than 10 major players in the two-wheeler segment, 3-4 in the electric bus segment and a few in the automobile segment.
These are the leading manufacturers of electric vehicles (EVs) in India:
1. Mahindra Electric

Mahindra is a pioneer of EVs in the Indian market. Mahindra was the first major EV manufacturer to launch the Mahindra Reva, its first EV, in 2001. The Mahindra Reva was India’s first electric car. In time, Mahindra established its own research and development centre in Bengaluru.
Other EV variants from Mahindra include the Mahindra E20 and the eVerito. However, Mahindra has not only focused on manufacturing EVs, but also batteries, and is working with various institutions to improve the charging speed of EVs.
2. Tata Motors

Tata is India’s largest automaker. The Company’s automotive segment includes the production of passenger cars, commercial vehicles, buses, trucks and military vehicles. Associated companies include Jaguar Land Rover and Tata Daewoo. But when it comes to the EV segment, Tata is a newcomer compared to Mahindra.
In India, Tata Motors has an industrial joint venture with Fiat. One of Tata’s strengths is its ability to tap into raw materials from all over the world. Tata’s innovation efforts are focused on developing technologies for cars that are not only capable but also sustainable. Design and R&D centres are located in India, UK, Italy and Korea. Tata Motors, in collaboration with its UK subsidiary Tata Motors European Technical Centre (TMETC), will enter the Indian electric vehicle market.

In terms of electric vehicles, Tata has focused on the passenger car and electric bus markets in India. In the all-wheel-drive segment, Tata offers 4 vehicles to choose from. Nexon EV, Tigor EV, Nano EV and the electric version of the Tiago. In the electric bus segment, Tata expects demand from state transport associations. The expected long-term demand is estimated to be around 400,000 buses.
Tata is not only focusing on electric vehicles, but also on building charging stations as part of its efforts to improve infrastructure in the sector.
3. Hyundai

Hyundai has entered the EV segment in India with the launch of the Hyundai Kona EV in India. The South Korean auto giant said that the Kona has been specially designed keeping in mind the Indian operating conditions. One of the advantages of the car is its range of 452 km on a single charge. It suited the Kitna Deti hai Indians perfectly when it comes to cars.
To put things in perspective: The difference in range between the Kona and the other market leaders is a few hundred kilometres. However, the Kona costs 23.8 lakhs, making it extremely expensive for the Indian market. In response, Hyundai said it has another electric car in development, intended to be affordable to the mass market. This electric vehicle should be ready for the market in the next two to three years.
4. Ashok Leyland

Ashok Leyland, the flagship company of the Hinduja Group, is the fourth largest bus manufacturer in the world and the market leader in trucks in India. The company has partnered with Sun Mobility to expand its expertise in the vehicle field.
Ashok Leyland is developing electric options specifically for Indian conditions and has also introduced replacement batteries for electric buses to meet the demand for e-mobility in the country. The company has launched several variants of electric buses such as Circuit, HYBUS, Electric Euro 6 Truck and has announced the iBUS. However, the company is currently focusing more on export.
Industry associations and subsidies in the field of electric vehicles

The emerging Indian electric vehicle market is seen as an opportunity. Other players who also have their products in the EV market are MG Motors, Maruti Suzuki, Renault, Audi, Volvo, Hero, Ather, etc. The expansion of the electric vehicle industry will lead other related industries to follow the same trend. This includes the battery and chargers for electric cars. Many companies such as Siemens, Schneider, Delta, etc. have shown interest.

But unfortunately, these companies will only enter the market if there is a significant demand in the public 4-wheeler segment. On the other hand, one of the major factors hindering the EV industry is consumer concern over the lack of fast-charging stations in India.
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Unorganized and small players dominate due to the limited size of the business. To address this, NITI Ayog is playing a key role in setting up charging stations for electric vehicles. Currently, 270 electric vehicle chargers have been installed in India. NITI Aayog is working with NTPC to set up 100,000 electric vehicle charging points across India. Other government organizations such as BHEL are working with ISRO to develop batteries using lithium technology.
Currently, lithium is mainly imported from China, South Korea, Vietnam, Singapore and Japan. Other players who have shown interest in the lithium battery sector in India include Reliance, Suzuki, Toshiba, Denso Corp, JSW Group, Adani, Mahindra, Hero Electric, Panasonic, Exide Batteries, Amara Raja.
List of best EV stocks in India for investors
Final thoughts
In this article, we have listed the top EV stocks in India along with the top EV manufacturers, their current performance in the EV segment and their future prospects. The Indian government has set a target of replacing all internal combustion engines with electric vehicles by 2030. A 2017 report by Mckinsey and Company found that 40% electrification is a more realistic view of mobility in 2030. However, this report was prepared before the pandemic. This will delay the electrification of the sector for years to come.
Moreover, the measures taken to enable the use of electric vehicles will not achieve their primary objective unless alternative means of electricity generation are introduced. Currently, up to 60% of electricity is generated with coal. While the government has set important targets to encourage the growth of electric vehicles, there is still a long way to go to make them a reality.
Frequently Asked Questions
What electric cars are coming in 2021?
The Tesla Model 3 is the most anticipated electric car of 2021.
What is the best EV stock to buy right now?
The best EV stock to buy right now is Tesla.
Which stocks will benefit from electric vehicles in India?
The stocks that will benefit from the electric vehicles in India are companies that are in the battery manufacturing industry.