EV is extremely new in Indian market so there will be neck to neck competition to win over the customers. But there are few key players who are going to benefit from this competition irrespective of who gets the bigger market share. They have a win-win situation so their margin of revenue will increase with its market capitalisation. Don’t believe us? Check the facts by reading the whole blog.
Moving to EV is inevitable in a fossil fuel based country like India. But it’s certain that there will be a winner and loser in this dog eat dog race. A reputed investment company has listed out two stocks who will benefit the most from this make a Horlicks of situation.
- Motherson Sumi Systems Limited: It is the largest auto part manufacturer in India. The products manufactured by MSSL include wiring harness, rearview mirror and moulded plastic car parts including interior and exterior. These things are fundamentals of a car and being the market leader, the EV companies have to rely on them for supply of these parts. So they are going to massively benefit from the EV boom. In the future it might be a hot stock for the investors.
- Exide Industries Limited: It is the largest lead-acid battery manufacturer in India. It might come to your surprise that how can a lead-acid battery manufacturer be a wise choice. So let me clear it out, if they are the largest automotive and industry lead-acid battery manufacturer then they can surely become the best in lithium ion battery manufacturing or even solid state battery manufacturing in future. They can even sign a MoU with an automotive company for supply of batteries. This is going to have a dominos effect on the company’s balance sheet. So it will also be a hot choice in long term investment.
- TATA Motors: This is purely my speculation and the facts presented for this company aren’t backed by any expert but by me. So as we know TATA Motors, it owns the luxury car company Jaguar Land Rover(JLR). And in a recent announcement JLR said that it plans to electrify its whole car lineup by 2025. They have also laid down a detailed floor plan for the move and it’s backed three reasons. I’ve discussed that in another blog(do check out for extensive knowledge on it). They also plan to enter the Indian EV market, considering their infrastructure and expertise knowledge it won’t be too much haphazard for them to get a headstart in this segment of cars. So taking all this factor into consideration TATA Motors won’t be a bad choice for an investor.
Please don’t consider this blog as financial advice but you may treat it as an advise. You can make a fortune by utilising the facts in this blog, on contrary you can go bankrupt also. So it’s up to you, what you want to do. Bye!