EV Industry and the Union Budget

EV Industry and the Union Budget

The Electric Vehicle (EV) industry got the much-needed impetus in the union budget. In the Government’s push for green mobility, the customs duty exemption has been extended to the import of capital goods and machinery required to manufacture lithium-ion (Li-ion) cells for batteries used in EVs. This can help the domestic players boost their manufacturing capabilities, make the market competitive, reduce vehicle costs, increase demand, and make the overall EV industry more efficient.

This development is sure to boost EV stocks in India. There are many such stocks in the NSE and BSE that can turn out to be multi-baggers if India’s EV dream becomes a success. Along with that, investors should also include battery stocks in their watchlists.

Stocks to Watch out for

Component Manufacturers

Minda Corporation Ltd: Minda is one of the largest suppliers of 2-wheeler, 3-wheeler, Off-Road vehicle Electronic & Mechanical Security Systems. The company is a diversified company with a product portfolio encompassing mechanical & electronic security systems, door systems, electronic controllers for electric vehicles, plastic interiors, and auto OEMs. The company has recently acquired a 5.24% stake in FRIWO AG – to strengthen its position in developing battery packs, BMS, chargers (both On-board and Off-board), smart plugs with RCD cable and motor controllers primarily for the EV 2-W & 3-W segment.

Sona BLW Precision Forgings Ltd: SONA BLW operates as an automotive systems and components manufacturer. The Company offers differential assemblies, gears, conventional and micro-hybrid starter motors, BSG systems, EV traction motors, and motor control units.

FIEM Industries Ltd: Fiem is engaged in the business of manufacturing and supply of integrated passengers information systems, auto components comprising automotive lighting & signaling equipment, rear-view mirror, prismatic mirror, plastic molded parts, bank angle sensors, canister and sheet metal components for motorized vehicles, and LED luminaries comprising of indoor and outdoor lighting, display panels.

EV Charging Infra

Tata Power: Tata Power is spread across the power business. From generation, transmission, distribution, power trading, power services, and solar PV manufacturing, the company also has a presence in consumer-facing businesses such as solar rooftops, solar pumps, EV charging, home automation, and microgrid. Tata Green Batteries is a 50:50 joint venture between Tata AutoComp Systems and GS Yuasa Corporation of Japan.

Indian Oil Corporation Ltd: Indian Oil has been at the forefront of serving EV customers and has already provided 2,500+ EV charging stations at fuel stations across the country and plans to increase numbers to 4,000 by the end of the current financial year. IndianOil’s E-Mobility initiative is aimed at providing confidence to automobile manufacturers to enhance EV production and to customers for an uninterrupted drive. The company aims to achieve net-zero operational carbon emissions by 2046, which aligns with India’s aim to reach net-zero emissions by 2070.

Reliance Industries Ltd: Reliance has entered into a joint venture with energy supermajor BP to develop EV charging hubs. Reliance BP Mobility Limited, operating under the brand name Jio-bp, is working with multiple demand aggregators, original equipment manufacturers (OEMs), and technology partners for scaling EV charging infrastructure players in India.

Two-Wheeler Manufacturers

TVS Motor Company Ltd: TVS is the third largest two-wheeler manufacturer in India. The Company manufactures two-wheelers, three-wheelers, and accessories.

Greaves Cotton Ltd: Greaves Cotton is engaged in the manufacturing of engines, engine application, engine spares, electric vehicles, and infrastructure equipment.

Hero MotoCorp Ltd: Hero MotoCorp Limited is the world’s largest manufacturer of two-wheelers. It is engaged in the manufacturing and selling of motorized two-wheelers, spare parts, and related services.

Commercial Vehicle Manufacturers

Tata Motors: Tata Motors is engaged in the business of production and sale of a wide range of automotive vehicles. The Company also manufactures engines for industrial and marine applications.

Ashok Leyland: Ashok Leyland Ltd. is engaged in manufacturing and selling commercial vehicles. The Company also manufactures engines for industrial and marine applications, forgings, and casting. Its products include buses, trucks, engines, defense, and special vehicles.

Eicher Motors Ltd: Eicher is engaged in the manufacturing and selling of motorcycles, commercial vehicles, spare parts, and related services. It manufactures the iconic Royal Enfield brand of motorcycles.

Mahindra & Mahindra Ltd: Mahindra is engaged in the production of SUVs, Multi utility vehicles, pickups, lightweight commercial vehicles, heavyweight commercial vehicles, two-wheeler motorcycles, and tractors.

Companies Snapshot

If you have a question, share it in the comments below or DM us or call us – +91 9051052222. We’ll be happy to answer it.

– Debraj Guha Thakurta & Nischay Avichal

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