7 Best EV Stocks that could outperform in 2024

Electric vehicles (EVs) have been making waves in the automotive industry, offering environmentally friendly alternatives to traditional gasoline-powered cars. The rising popularity of Electric Vehicles has led to increased interest in EV stocks as potential investments. Investing in EV stocks is an excellent way to diversify your portfolio while contributing to a sustainable future. In this blog, we'll explore what EV stocks are, why you should consider investing in them, and delve into the top 7 EV stocks that show potential for the year 2024.

What are EV Stocks?

EV stocks represent shares in companies that are involved in the production, development, or distribution of electric vehicles and their components. These stocks can be an attractive investment option due to the expanding electric vehicle market, driven by a global shift toward sustainability and reduced carbon emissions. The Electric Vehicle market in India is still believed to be at developing stage but has shown tremendous potential in recent years. The government's push for clean energy and incentives like FAME-II has encouraged automakers to invest in EV production. According to market research, the Indian EV market is expected to experience a Compound Annual Growth Rate (CAGR) increase of 44.5% during 2020-2025. (Source: The Times of India) 

Why Invest in EV Stocks?

Investing in EV stocks offers several advantages. As the world shifts towards greener transportation options, the EV sector is composed of substantial growth. This growth potential can translate into significant returns on investment, making EV stocks an appealing choice for investors looking for long-term prospects in India. The key growth drivers are government support, increasing fuel costs, and technological progress. The Indian government provides a positive and conducive policy framework to promote this sector. India's EV market is forecasted to outgrow from 2020 to 2030. The total market size of EVs in India is expected to reach 63.7 million units by 2030, with two-wheelers being the primary contributor to this growth.

Segments of the EV Sector:

The EV sector comprises various segments, including manufacturers of electric vehicles, battery suppliers, charging infrastructure providers, and more. Diversifying your investments across these segments can assist in risk management and enable the exploration of diverse opportunities within the industry.

Overview of Top EV stocks to invest in India in 2024:  

1. Tata Motors (TAMO)
   Tata Motors is a leading Indian automobile manufacturer. The company has made significant progress in the EV space with its fully electric Tata Nexon and Altroz EV. Tata is committed to increasing the share of EVs in its product portfolio, making it a desirable stock for EV investors.
    
2. Mahindra & Mahindra (M&M) 
   Mahindra & Mahindra, one of the oldest automobile manufacturers in India, has been at the forefront of the EV revolution in India for a while now. The company's electric vehicles, including the eKUV100 and XUV400 electric SUV, have garnered significant attention from customers and investors alike. It has a strong presence in the EV market.
    
3. Hero Electric (HEROMOTOCO)
   Hero Electric is India's largest electric two-wheeler manufacturer. The company possesses a diverse product range, including electric scooters targeted at various customer segments. The company aims to launch 15 more e-scooters by 2024, making it a noteworthy EV stock to invest in. 
    
4. Exide Industries (EXIDEIND)
   Exide Industries, a leader in battery manufacturing, is a key player in the EV battery market, providing essential components for electric vehicles. With a wealth of experience and an unwavering dedication to innovation, Exide Industries has cemented its reputation as a trusted and influential player within the electric vehicle ecosystem.
    
5. Olectra Greentech (OLEC)
   Olectra Greentech specializes in developing electric buses and is dedicated to offering sustainable public transportation solutions throughout India. As the nation increasingly shifts towards eco-friendly and efficient public transit options, Olectra Greentech has emerged as a prominent player in the electric bus sector. With a mission to reduce emissions and promote green mobility, the company's commitment to innovation aligns with the growing demand for cleaner and more sustainable transportation solutions in India.
    
6. Motherson Sumi Systems (MSSL)
   Motherson Sumi Systems is engaged in the production of components for electric vehicles. MSSL is actively engaged in the production of components for electric vehicle servicing markets. As the electric vehicle industry gains momentum, Motherson Sumi Systems has strategically positioned itself as a reliable and innovative supplier of critical EV components. With a focus on manufacturing excellence and a commitment to sustainability, the company plays a significant role in driving the evolution of electric mobility. Its presence in both domestic and international markets underscores its importance as a key contributor to the growth of the electric vehicle sector on a global scale.
    
7. Power Grid Corporation of India (PGCIL)
   The Power Grid Corporation of India holds a crucial role in advancing the development of EV charging infrastructure within the country. As electric vehicles become increasingly popular, the demand for reliable and accessible charging solutions has grown significantly. PGCIL's involvement in this sector scores its commitment to supporting the expansion of electric mobility in India. By contributing to the establishment of a robust charging network, PGCIL aids in overcoming a critical hurdle in the adoption of electric vehicles, thereby fostering a more sustainable and efficient transportation ecosystem.

Conclusion

The electric vehicle sector is on the verge of substantial growth, and investing in EV stocks can be a strategic move for potentially high returns. These companies have strong revenue and profit margins, stock price trends and predictions, PE ratios, and other valuation metrics. Investing in EV stocks can be a profitable long-term investment with substantial potential for growth.By exploring opportunities with the best share broker, diversifying your portfolio with EV stocks can offer a balanced risk-reward ratio. The EV industry is looking for exponential growth with government policies and initiatives promoting green energy systems. Investors should keep a close eye on market trends, global EV market analysis, and future trends in EV technology and innovations to make an informed investment decision.

Frequently Asked Questions

Q1. What are 4 best EV stocks to invest in India?

Ans. This are the selected 4 best ev stocks that can out perform in india by 2024:-

1. Tata Motors (TAMO)
2. Mahindra & Mahindra (M&M)
3. Hero MotoCorp (HEROMOTOCO)
4. Exide Industries (EXIDEIND)

Q2. How do I evaluate the performance of EV stocks before investing?

Ans. To evaluate EV stock performance, analyze factors like revenue growth, market share, and sustainability initiatives. Additionally, examine the company's competitive position in the market.
 

Q3. Which segments of the EV sector are the most promising for 2024 investments?

Ans. The most promising segments within the EV sector for 2024 investments include electric vehicle manufacturers, battery producers, charging infrastructure providers, and companies involved in EV components and technologies.

Q4. What factors should I consider before investing in EV-related stocks in India specifically?

Ans. Before investing in Indian EV-related stocks, assess factors such as the company's growth prospects, government policies supporting EVs, and the global trends in the EV market.

Q5. Are EV stocks suitable for long-term investments, or are they better for short-term gains?

Ans. EV stocks can be suitable for both long-term and short-term investments. Your investment strategy should align with your financial goals and risk tolerance. Long-term investments may benefit from the sector's expected sustained growth.