The Electric Vehicle is a Revolution and it is about to accelerate in India. Lithium-ion battery manufacturer’s stocks in India will give multibaggers return in the long run.
Why we choose Electric Vehicle Stocks In India?
- The Government of India is fully dedicated to make India a 30% EV nation by 2030 that led to a sharp rally in the stock of companies with exposure to EVs.
- Electric vehicles (Cars, Buses) will be the future of our country because very soon the running cost of the vehicle could be around 20 to 30 paise per km and can attain a speed of 40-50 km per hour.
- Its cost will be so much less that people will soon shift from petrol/diesel vehicles to electric vehicles.
- The most important thing is that the Electric Vehicles could create $300 Billion Domestic Battery Market by 2030.
- One more thing you have to notice is that the government had launched the FAME INDIA scheme in 2015 offering incentives on electric and hybrid vehicles of up to Rs 29,000 for bikes and Rs 1.38 lakh for cars.
- The NDA 2.0 government in Budget 2019 lower the GST rate on electric vehicles(EV) from 12% to 5%.
- In addition, there will be an Income Tax Deduction of Rs. 1.5 lakh on the interest paid on the loans taken to purchase electric vehicles.
- So if you want a 30-40% compound annual growth rate (CAGR) then you have to consider this sector and must add electric Vehicles stocks into your portfolio.
There are so many companies involved in Electric Vehicles so, we divide it into 5 parts:
- Electric Vehicle Producing Companies: Part – 1
- Lithium-ion Battery Manufacturers in India: Part – 2
- Electric Vehicle Charging Stations in India: Part – 3
- Companies Involved in R & D of Electric Vehicle: Part – 4
- Raw Material Extracting Companies: Part – 5
List of Lithium-ion Battery Manufacturers Stocks in India
1) BHEL and ISRO
- Bharat Heavy Electricals Ltd (BHEL) reached an MOU with the Indian Space and Research Organization (ISRO).
- BHEL is going to invest Rs 100 crore.
2) Exide Industries
- Exide Industries and Sydney-based Ecoult are setting up a new lithium-ion battery manufacturing plant in East India named Ultra Battery.
- Exide Industries, India’s largest manufacturer of batteries, and Leclanché announce the launch of a new joint venture to build lithium-ion batteries and energy storage solutions to power the growth of India’s electric vehicle market.
3) Amara Raja Batteries
- The Hyderabad-based company Amara Raja Batteries is ready to enter electric car batteries space.
- The company is aiming to be an Rs 10,000-crore entity in the next 2-3 years as the company clocks a solid double-digit growth.
- The company is registering a CAGR (compound annual growth rate) of around 14-15 percent in its revenue over the past five years.
- Amara Raja Batteries Ltd., India’s second-biggest traditional battery maker by value, will build a lithium-ion assembly plant as it seeks to grab a slice of the market for electric vehicle power packs that are set to grow to $300 billion by 2030.
4) HBL Power Systems
- It is a leading battery and power systems company based in Hyderabad, India.
- The company makes batteries for the defense and industrial sectors.
5) High Energy Batteries
- High Energy Batteries Limited is an India company that manufactures batteries. The company has a market cap of $609.54 million.
- The Firm operates through two divisions: Aerospace, Naval, and Power System Batteries, and Lead Acid Storage Batteries.
6) JSW Energy
- Mumbai-based JSW Energy, part of Sajjan Jindal-led JSW Group, which wants to launch EVs by 2020, is also planning to set up a battery factory.
The Reliance, the Adani, the JSW, the Mahindra and the Hero groups of companies are in the race to set up Li-ion battery production plant in India.
I have a lot of other things that also need to be considered and those are something that I will cover in my next post.