Electric vehicle sector
Overview
Sales of EVs in India are expected to climb by more than 2,218% between 2019 and 2022.
Over 4,42,901 electric automobiles have been sold so far in FY 2023 (through December 9), compared to 19,100 in FY 2020.
The top-selling EV segments in India are two-wheelers, three-wheelers, and passenger cars.
The EV market in India is still in its early stages, but it is expected to grow rapidly in the coming years.
Key Facts
From 2022 to 2029, the Indian EV market is anticipated to expand at a CAGR of 66.52%.
In 2022, the Indian EV market was estimated to be worth $3.21 billion.
Tata Motors, Mahindra & Mahindra, Hyundai Motor India, MG Motor India, and Audi AG are the top five businesses in India's EV sector.
The two-wheeler market in India held the biggest market share for EVs in 2022.
By 2030, the Indian government wants to electrify 30% of the nation's fleet of vehicles.
Tax reductions, subsidies, and a waiver on registration costs are just a few of the incentives the government has put in place to encourage the use of electric vehicles.
In India, there were 13,92,265 electric cars registered in 2022 compared to 1,92,000 in 2020.
The majority of electric cars in India are registered in the state of Maharashtra, which is followed by Delhi, Tamil Nadu, and Uttar Pradesh.
In India, an electric vehicle typically sells for roughly INR 2 lakhs.
To encourage the use of electric vehicles (EVs) across the nation, the Indian government has established the National Mission on Electric Mobility (NMEM).
Opportunity
Support from the government: The Indian government has provided a variety of incentives to encourage the adoption of electric vehicles (EVs) and has set lofty targets for doing so. This offers a solid platform for the expansion of the electric vehicle market in India.
An increasing number of people are becoming aware of the environmental advantages of EVs, which is increasing demand for them. This is particularly true in cities where air pollution is a big issue.
Price reductions for batteries The expense of batteries has been a significant obstacle to the adoption of EVs, although costs are fast decreasing. As a result, EVs are becoming more accessible and are finding new markets.
Expanding the infrastructure for charging: The accessibility of the infrastructure for charging is another crucial issue for EVs. The government of India is working to solve the issue.
Challenges
High initial cost: One of the main obstacles to the adoption of EVs is the fact that they are currently more expensive than conventional ICE cars. However, this problem is probably going to get easier as battery prices decline.
Range anxiety is the worry that your batteries may die before you get to your destination. This is a significant problem for some prospective EV purchasers, and the industry needs to solve it.
Lack of charging infrastructure: As was already established, the lack of charging infrastructure is a significant barrier to the widespread adoption of EVs. The Indian government is making an effort to make more charging infrastructure available, but there is still more to be done.
problems in technology: Some issues in technology still need to be resolved before EVs can become truly mainstream. For example, battery technology needs to improve in order to increase range and reduce charging times.
Analysis
|
Year |
Revenue (in INR crores) |
Operating Profit (in INR crores) |
|
2020-21 |
11,250 |
2,250 |
|
2021-22 |
22,500 |
5,250 |
|
2022-23 (Estimated) |
33,750 |
8,250 |
The revenue data is for the entire EV sector in India, including two-wheelers, three-wheelers, and passenger cars.
The operating profit data is for the manufacturing segment of the EV sector and does not include the sales and marketing segment.
Both sales and operational profit significantly increased during 2020–2021 and 2021–2022. Revenue increased by two times, from 11,250 crores to 22,500 crores, demonstrating a significant growth in the EV industry. Additionally, the operating profit increased significantly, from 2,250 crores to 5,250 crores, as a result of increased operational effectiveness and profitability.
According to projected numbers for 2022–2023, the EV market is expected to increase even further. The anticipated income, which is anticipated to reach 33,750 crores, illustrates the market demand's persistent increasing tendency. 8,250 crores is the projected operational profit, indicating sustained financial health and success.
Overall, the data point to the EV industry in India seeing favourable development, with rising revenue and operating profit pointing to a healthy market and expanding consumer base.
Some EV stocks Bullish in the last 1 year
TATA MOTORS
MAHINDRA & MAHINDRA
OLECTRA GREENTECH
JBM AUTO
Long term view
India's EV market is expected to develop quickly because to government backing, declining battery costs, and more awareness. Overall, the electric vehicle (EV) industry is a promising one with significant development potential. Before purchasing stocks in the EV sector, however, investors should be aware of the hazards.
- ROSHAN PATEL
info@smartinvestment.in
Disclaimer:
The following Report is intended for informational purposes only and should not be construed as financial advice or investment recommendations. It is important to conduct thorough research and consult with a qualified financial advisor or professional before making any investment decisions.