Top 10 electric vehicle stocks Indian investor should focus on ; Government Electric vehicle policies # Review

When it involves investing it's through with a purpose either to realize goals or fundraising. And you recognize why you're investing and where many of us also do theme-based investments. And there is a subject you all want to understand about Electric Vehicles (EVs)

 Many people want to understand what are the upcoming government policies that may give impetus to the EV sector. And also we are going to discuss the related stocks and the way they're going to be laid low with the expansion

 In India, the EV sector remains in its early stages, and if we consider other aspects like pollution levels that tell us that might be a giant change. Existing cars operating on combustion may shift to EVs. We as a rustic can see plenty of advantages thanks to this alteration and therefore the level of pollution will come down. But we'll even have to face many challenges just like the high upfront cost of electrical battery and the way can we reduce it in future. Also there's the charging system which isn't very developed in India. Therefore, the central and state governments keep taking initiatives to encourage this sector to create a mental change. The government has already taken initiatives named FAME, FAME-II, National Electric Mobility Mission Plan, 2020 and Go Electric. In 2013, National Electric Mobility Mission Plan 2020 was launched, FAME, Karnataka EV Policy was approved in 2015. And Telangana EV Plan was drafted in 2017, followed by Andhra Pradesh and Uttarakhand in 2018 with their plans. was approved. Many other states like Delhi, Punjab, Maharashtra, Bihar, Kerala, UP, Madhya Pradesh and province and in 2020, Telangana approved its EV policy in 2020.

 Many governments provide incentives and subsidies apart from policies. For instance, the Delhi government provides a 5% deduction if you purchase an EV. Other states also briefly provide incentives and subsidies on EVs. #1 is Delhi which provides subsidy on 2, 3 wheeler, car, light and buses, followed by Bihar in 2, 3 wheeler, car and bus segment. Maharashtra provides 15% subsidy aboard price for two, 3 wheeler, and bus. Gujarat also provides subsidy and here is what incentive we are able to get Kerala, subsidy up to Rs 30000 on 3-wheelers provides.

 By now you want to have come to grasp that how the state and central governments encourage electric vehicles,but if we glance at the development during this sector. Developing the charging segment is of paramount importance for the expansion of this sector. Several steps are taken by the governments to reinforce the charging infrastructure because it is one in all the most growth drivers. Incentives like direct subsidy on the acquisition of EVs range between Rs 50k - 10 lakhs up to 25-50%.

 The second incentive is to cut back the lease charges for opening of charging stations as compared to petrol pumps. Several steps are taken by the government to create energy accessible directly from renewable energy. Except for this, several initiatives are taken by the government to open charging stations in remote areas.

 We have now seen 2 incentive structures, one for getting EVs and therefore the other for charging infrastructure

 Third and most significant is to encourage manufacturing, a way to reduce the value of producing. Governments have tried to encourage this several times and auto components also. The primary initiative is that the capital subsidy undertaken by Karnataka which subsidizes MSMEs, big, mega. , and ultra-mega business. You'll get capital subsidy of 1.5 to five million or 25% state. Also provides subsidy to any or all these segments from 1.5 to 50 million, 10% of investment, 10% of first 2 units. Aside from them, Kerala, Tamil Nadu and Telangana have also planned to subsidize manufacturing. We’ve got talked about the event during this sector and the way the government is reaching to give impetus.

 Let us now move to the second part where we'll tell you about the businesses within the value chain

 First, there's Tata Motors which comes under the manufacturing a part of the worth chain. They need come up with 3 EV variants within the car segment and have delivered over 200 EV buses. If we are into a number of its financials, its market cap is around 121429 crores, and can't discuss its PE ratio because it may be a loss making company. But recently its share price has corrected, traded below around 100 now it's currently around 350.

 The second company is Mahindra & Mahindra which features a market cap of quite 90000 crores. They need an exclusive subsidiary called Mahindra Electric to concentrate on this segment. And have shown a decent presence within the 3 and 4 wheeler segment. He launched e-Verito and e-Alpha where he has shown a good presence. Its PE Ratio is around 53 and it's given 53% return in last one year

 Next is Ashok Leyland which is that the third player within the manufacturing segment. They need a UK subsidiary called Switch Mobility that desires to target a way to bring EVs. Its market cap is around 36000 crores and it's given 53% returns within the last one year. To your investors

 The fourth company is that the market leader, Maruti Suzuki with a market cap of two.25 lakh crores. They’re reaching to bring their first EV called WagonR by 2022, and that they are the most important players within the PV segment. The company's ROE is around 8%. And has given 28% return to its investors within the last one year

 As on 5th HeroMotor Corp which has the biggest share within the 2-wheeler segment, they do not have a proper business focused on EVs. They’re reaching to come up with an EV by 2022 and have also invested within the famous Ather Energy for electric scooter. Their market cap is around 58000 crores and its PE ratio is around 20.

 After this, 2 and three wheeler makers TVS and Bajaj Auto also are reaching to launch EVs by 2022. There are 2 main companies within the battery manufacturing segment namely Exide Battery and Amara Raja Battery. And you need to have heard these names, so if the EV segment grows and that they are ready to adapt, they're going to grab a good market share.

 Lastly, Tata Power is looking to develop the whole EV infrastructure, and has deployed 400 charging stations in 65 cities. Its market cap is approx 39000 crores, PE ratio is above 50 and it's given 174% returns in last one year.

 Conclusion;

 Electric vehicle goes to remodel the transportation infrastructure and can impact the market too. This could be an honest bet to take a position within the electric vehicle sector.  (Warning: Please invest supported your research. The aim of this text is to share information only)