India’s electric vehicle (EV) industry is on the cusp of a massive expansion. As of 2023, the sector was valued at around $2 billion and is projected to skyrocket to $7.09 billion by 2025. According to the Indian Economic Survey 2023, the EV market is expected to grow at an impressive CAGR of 49% from 2022 to 2030. This anticipated growth reflects a broader shift toward sustainability, with EVs increasingly seen as essential to India’s greener future. As the nation transitions to electric mobility, a range of EV penny stocks shows potential for high returns in 2024. This article highlights some of the most promising EV penny stocks, focusing on companies with strong fundamentals and long-term growth potential
Why Invest in Electric Vehicle Stocks in India?
The electric vehicle (EV) industry in India is on a dynamic growth path, attracting investors eager to capitalize on a future-oriented market. Forecasted to reach $34.80 billion by 2024 and surge to $110.74 billion by 2029, EV stocks in India present an opportunity for substantial long-term returns in a sector with expanding demand and innovation.
Here’s why EV stocks in India are an appealing investment:
- Government-Driven Boost: India’s government is fully backing the EV movement with incentives and policies like the Production-Linked Incentive (PLI) Scheme and the FAME-II initiative, which subsidize both manufacturers and consumers. This support aims to accelerate EV adoption across the country, creating a favorable environment for businesses in this sector.
- Ambitious Goals for 2030: With goals to have 30% of private cars, 70% of commercial vehicles, 40% of buses, and 80% of two- and three-wheelers running on electric power by 2030, the government’s commitment to EVs opens vast growth avenues for companies poised to meet this demand.
- Rapid Market Expansion: The EV market in India is growing at an impressive 26.05% annually, fueled by consumer demand for cleaner, cost-effective transportation options and innovative EV technology. This high growth rate highlights the potential for significant returns in the sector.
- Make in India’ Focus: The government’s ‘Make in India’ initiative encourages local manufacturing in the EV segment. This push not only bolsters domestic production but also reduces dependency on imports, making the EV supply chain more sustainable and resilient.
Investing in India’s EV stocks means tapping into a transformative industry with strong governmental support, robust market demand, and strategic initiatives geared toward sustainable growth.
Top EV Stocks in India for 2025
| Company | Sector |
|---|---|
| JBM Auto Ltd | Auto Parts |
| Amara Raja Energy & Mobility | Batteries |
| Exide Industries Ltd | Batteries |
| Motherson Sumi Wiring India | Cables |
| Himadri Speciality Chemical | Commodity Chemicals |
| Tata Chemicals Ltd | Diversified Chemicals |
| Graphite India Ltd | Electrical Components & Equip. |
| Servotech Power Systems | Electrical Components & Equip. |
| Tata Motors Ltd | Four Wheelers |
| Mahindra and Mahindra Ltd | Four Wheelers |
| Maruti Suzuki India Ltd | Four Wheelers |
| Greaves Cotton Ltd | Industrial Machinery |
| KPIT Technologies Ltd | IT Services & Consulting |
| Hindalco Industries Ltd | Metals – Aluminium |
| Vedanta Ltd | Metals – Diversified |
| Hindustan Copper Ltd | Mining – Copper |
| Ashok Leyland Ltd | Trucks & Buses |
| Hero MotoCorp Ltd | Two Wheelers |
Top EV Penny Stocks in India for 2025
| Company Name | Industry | Why It’s a Good Penny Stock |
|---|---|---|
| Amara Raja Energy & Mobility Ltd | Batteries | – Strong brand in energy storage – Consistent ROE & ROCE – Positioned well in EV battery segment |
| Indo National Ltd | Batteries | – Stable dividend yield – Known for brand “Nippo” – Potential for turnaround in battery market |
| Panasonic Energy India Co Ltd | Batteries | – Backed by Panasonic brand – Potential to tap into growing battery demand – Restructuring could improve future earnings |
| HBL Power Systems Ltd | Power Systems | – Expanding defense & railways contracts – Consistent cash flow – Low debt-to-equity ratio |
| Eveready Industries India Ltd | Batteries | – Iconic household brand – Potential for EV battery expansion – Improving financial health |
| Goldstar Power Ltd | Power Solutions | – Strong growth in domestic market – Attractive ROE and ROCE – Low debt enhances stability |
| Exide Industries Ltd | Batteries | – Leading battery manufacturer – Positioned for EV shift – High brand recognition in India |
Top 3 EV Stocks in India Based on ROE
1. Tata Motors Ltd
- Sector: Automobiles
- Focus: Electric Cars and SUVs
- ROE: High due to market dominance in EV passenger vehicles
- Growth Driver: Strong portfolio of EVs, aggressive expansion in EV infrastructure
2. KPIT Technologies Ltd
- Sector: IT Services & Consulting
- Focus: Software solutions for EVs
- ROE: Significant, driven by specialized EV software demand
- Growth Driver: Focus on EV software and systems, partnerships with major auto companies
3. Hero MotoCorp Ltd
- Sector: Automobiles
- Focus: Electric Two-Wheelers
- ROE: Consistent performance in two-wheeler segment, adapting to EV transition
- Growth Driver: Introduction of affordable electric scooters and partnerships for battery technology
