Top 10 Electric Vehicle Stocks in India 2023

According to GrandViewResearch’s study, the Indian electric vehicle market has to reach $152.21 billion by 2030 at a CAGR of 94.4%. (see the snapshot below)

Indian Electric Vehicle Market Expected Growth

That means the electric vehicles sector has huge potential in terms of stock investment. If you are also looking for top electric vehicle stocks in India, then go through this article, as I have shortlisted the 10 electric vehicle stocks in India that seem promising.

Disclaimer – I have shortlisted stocks based on the Company’s brand value & product popularity in the market. The stock names mentioned in this article are purely for educational purposes and should not be considered stock recommendations. Do your own research before investing.

Top 10 Electric Vehicle Stocks in India

StockCategory typeMarket cap 1-yr returns(in %age) 5-yr returns (in %age) 
TATA MotorsAuto manufacturerRs. 1,28,866 Cr.-17-3
Mahindra & MahindraAuto manufacturerRs. 1,54,361 Cr. 5164
Hero MotoCorp Auto manufacturerRs. 54,853 Cr.13-26
TATA ELXSI EV softwareRs. 39,097 Cr.8493
Exide Industries LtdBattery manufacturingRs. 15,364 Cr.9-19
Indian Oil CorporationCharging StationsRs. 1,15,229 Cr.630
KPIT Technologies LtdBattery manufacturingRs. 19,618 Cr.18626
TATA Power Co. LtdCharging stationsRs. 65,888 Cr.-5134
Samvardhana Motherson International LtdAuto parts & WiringRs. 52,145 Cr.-16-26
Hindalco Industries LtdNon-Ferrous Metals Rs. 105,787 Cr.582

Factors To Consider While Investing In Electric Vehicle Stocks

#1. Do In-depth Research

When your research is strong, you can find stocks trading at a discount to their true value and eventually get market-beating returns in the future.

Stock research is a very deep topic that requires a series of articles to understand, which I’ll try to pen down in the future. Let’s now focus on 3 important factors that you must know while investing in EV stocks.

#1. Business model analysis

First of all, you should understand the business model analysis to evaluate a company’s strengths and weaknesses. 

You can analyze a company’s business model from its annual report, articles in trade magazines, and financial websites such as Moneycontrol and Economic Times.

The business model analysis will help you filter a weak company into a strong industry and a strong company doing well in a weak industry.

#2. Financial analysis

You can determine the financial strength of a company by looking at six important ratios. 

  • Earnings per share (EPS) – The profit you can earn per share of a company
  • Price-to-earnings (P/E) ratio – Extra money you have to pay to buy that share relative to its per-share earnings.
  • Price-to-book (P/B) ratio – Market value of a company’s share price over the value of its assets
  • Free cash flow (FCF) per share – Actual surplus money left per share after deducting all expenses of that business.
  • Return on Equity (ROE) – gives the return on investment for shareholders.
  • Return on Capital Employed (ROCE) – measures a company’s efficiency in utilizing capital (equity+debt).

#3. Efficient management & its trust in future performance

Apart from how good a company’s product or service is, a company’s growth highly depends on the top management that makes the key decisions. A company might not survive longer if the wrong people are making key decisions. 

Ideally, the CEO and board of directors of a company should have vast industry experience and their financial interests must be aligned with shareholder interests.

Lastly, you should also check the solid backing of its promoters. More promoter holding ensures that the company management has reasonable confidence in its business’s future performance.

#2. Analyse Highly Aggressive Players Carefully

Thoroughly analyze if the shortlisted EV companies are betting aggressively on electric vehicles in a way that demands substantial capital investments and doing so while taking heavy debt.

You should keep in mind that the whole EV ecosystem is still evolving at a swift pace. 

So what works now may not work in the future. If a company is operating its business on high debt, it may lead to losses or low profits in such a case. That may eventually lead to lesser returns on your investment.

You should check out two important things in an EV stock that look promising –

  • The stock must have a low debt-equity ratio
  • A strong track record of profit growth over the past years

#3. Look Beyond EV Automakers

Apart from electric vehicle companies’ stocks, you should also check out the other players involved in the EV ecosystem, such as 

  • Charging infrastructure, 
  • Battery swapping operators, 
  • EV ancillary manufacturers, 
  • Companies with expertise in  EV software designing, 
  • Chemical companies involved in battery manufacturing, 
  • Metal and mining companies

If you analyze the whole ecosystem, you’ll not only find more valuable players but your portfolio would also get diversified in a better way.

That’s why in my list of top electric vehicle stocks in India, I have included players from the whole EV ecosystem rather than only listing EV vehicle manufacturers.

If you are a newcomer and want to learn how to buy stocks using a demat account, then go through my guide on how to buy shares in Upstox (the process would be quite similar for any other broker).

If you don’t have a demat account, you can go through my latest article on the best free demat account with no annual charges, which are specially curated for newcomers.

Let’s start our discussion for top electric vehicle stocks in India.

Top Electric Vehicle Companies to Invest in India

#1. TATA Motors

Market CapRs. 1,28,866 Cr.
EPSRs. -2.09
P/E ratio0
P/B ratio6.74
FCF per share95.20
ROE-8.93 %
Debt to equity ratio1.17
Profit Growth (last 5 years)7.38%

Tata Motors Group has an 87% market share in the electric vehicles segment, making it the #1 EV automobile manufacturer in India.

Tata Motors offers a diverse portfolio of cars, sports utility vehicles, commercial vehicles, and defense vehicles to the world.

Apart from India, Tata Motors has a solid presence in the UK, South Korea, South Africa, China, Brazil, Austria, and Slovakia through a strong global network of associate companies and Joint Ventures (JVs). The most important among them are – Jaguar Land Rover in the UK and Tata Daewoo Commercial Vehicle Co. Ltd. in South Korea.

Despite huge debt, I still like Tata Motors because, firstly, they are very dedicated to the upliftment of their vehicles, as they have spent above Rs. 15,000 Cr on R&D, which is the highest among their peers.

The EV segment of Tata Motors has seen a jump of 57% in electric vehicle sales in August 2022, which is a positive sign for the future of this conglomerate.

#2. Mahindra & Mahindra

Market CapRs. 1,54,361 Cr.
EPSRs. 49.59
P/E ratio25.04
P/B ratio3.75
FCF per share37.54
Debt to equity ratio0.17
Profit Growth (last 5 years)6.26%

Mahindra & Mahindra (M&M)  has partnered with UK’s impact investor British International Investment (BII) and raised $250 million to establish the electric vehicle business.

M&M expects 20-30% of its portfolio to comprise passenger electric vehicles by 2027.

Though Mahindra group has only one car in the EV segment, which is eVerito (EV version of Verito) but still Mahindra is the no. 1 in electric Three-wheeler (3-W) company with a 73% market share.

M&M is also the largest small commercial vehicle (LCV), and 2nd largest Commercial vehicle player in India. M&M is also the leading tractor manufacturer in India, with a 40% market share.

Regarding the passenger vehicle segment,  M&M is the 4th largest Passenger Vehicle in the domestic market.

#3. Hero MotoCorp 

Market CapRs. 54,853.45 Cr.
EPSRs. 132.80
P/E ratio20.67
P/B ratio3.34
FCF per share82.94
Debt to equity ratio0
Profit Growth (last 5 years)-6.04%

Hero Motocorp is the world’s largest two-wheeler manufacturer, with a 48% overall share in the Indian market.

In January 2022, Hero invested more than Rs. 420 Cr. in electric vehicle (EV) start-up Ather Energy to expand its EV business.

Hero has also collaborated with California-based Zero Motorcycles and invested around $60 million to develop electric motorcycles. 

A much-diversified e-bikes catalog and budget electric two-wheelers among peers also give them an edge over the competition.


Market CapRs. 39,097.15 Cr.
EPSRs. 107.58
P/E ratio58.36
P/B ratio23.11
FCF per share54.23
ROE37.23 %
Debt to equity ratio0
Profit Growth (last 5 years)25.75%

Tata Elxsi provides engineering and AI-based digital services for electric vehicles that include designing, testing, and vehicle program management.

With presence across the world, the major revenue comes from Europe at 36.5%, the rest is as mentioned below –

  • USA – 36%
  • India – 13%
  • Rest of the world – 14.5%

The company has also grabbed multiple EV software projects across the globe, including major clients in US, Japan, and APAC region.

With zero debt and consistent profit growth of around 26% in the last 5 years, Tata Elxsi is a good stock in the EV segment.

#5. Exide Industries Ltd

Market CapRs. 15,364 Cr.
EPSRs. 56.43
P/E ratio3.2
P/B ratio1.39
FCF per share-7.51
ROE53.53 %
Debt to equity ratio0.05
Profit Growth (last 5 years)46.52%

Though Exide Industries has not performed well in the last 3 years, 2022 turned into a good year for Exide. 

In the September 2022 quarter, Exide Industries’ consolidated net profit zoomed 22.7% to Rs 241.20 crore. The company has also witnessed a 13.3% YoY increase in net sales to Rs 3,841.13 crore, which is a positive sign for future growth.

Exide is going to build battery management systems (BMS) and modules via its subsidiary — Nexcharge. Nexcharge has acquired orders above Rs 260 crores across the industrial as well as automotive sectors. 

Exide has reported around 32% growth in both sales and PBT (Profit before Taxes) in the first half of the financial year 2022-23, which is a good indication for this undervalued stock, which is currently available at a low P/E of 3.2.

#6. Indian Oil Corporation Ltd. (IOCL)

Market CapRs. 115,229 Cr.
EPSRs. 41.13
P/E ratio23.13
P/B ratio1.53
FCF per share-12.64
ROE5.50 %
Debt to equity ratio0
Profit Growth (last 5 years)2.96%

Indian Oil Corporation Ltd (IOCL) is the major contender in the Oil refining & petroleum marketing sector of India. IOCL is a government-controlled company possessing 32% of the total refining capacity of India.

IOCL has around 15,000 km of pipelines spread across the country. 

Indian Oil Corporation also has installed more than 2,500 EV charging stations in India and its target is to achieve the goal of 4000 charging stations by the end of 2023.

A highly dividend-paying company with a dividend yield of 10.5% and a low P/E of 8.86 makes IOCL a good option for long-term investors.

#7. KPIT Technologies Ltd

Market CapRs. 19,618 Cr.
EPSRs. 11.6
P/E ratio61.8
P/B ratio14.1
FCF per share9.12
ROE21.5 %
ROCE24.1 %
Debt to equity ratio0.13
Profit Growth (last 3 years)47.34%

KPIT Technologies has been working for the last six years on sodium-ion battery technology to replace lithium-ion in the three-wheeler and the local bus sector.

A sodium-ion battery is around 40% cheaper than a lithium-ion battery, making it a cost-effective alternative to traditional batteries. 

KPIT has the edge over the competition in sodium-ion battery manufacturing, resulting in better sales and profit growth in the future.

KPIT’s major areas of work are 

  • Autonomous Driving & ADAS.
  • Electric & Conventional Powertrain.
  • Vehicle Diagnostics.
  • Vehicle Engineering and Design.

The above-mentioned business streams earn most of its revenue for KPIT. The major revenue is generated from the USA and Europe, with 39% revenue from the USA and 40% from the Europe region.

KPIT also provides software solutions for software-defined vehicles, such as driver assistance features, infotainment, and intelligent connectivity.

Since KPIT is the market leader in its segment, its last 5-year profit growth has been above 47%, and its earnings are expected to increase by 91% in the next couple of years, exhibiting a highly promising future ahead. 

#8. TATA Power Co. Ltd

Market CapRs. 65,888 Cr.
EPSRs. 7.96
P/E ratio25.9
P/B ratio2.57
FCF per share6.90
ROE8.42 %
ROCE9.30 %
Debt to equity ratio2.07
Profit Growth (last 5 years)47.58%

Tata Power Company Ltd is primarily involved in the business of electricity generation, transmission and distribution. Tata Power aims to produce electricity completely through renewable sources by manufacturing solar roofs. It also plans to install 1 lakh EV charging stations by 2025.

Tata Power has a total capacity of approx. 12,808MW from its various power projects, such as Thermal, Hydro, Renewable, and Waste Heat Recovery across India.

Tata Power shares have grown almost 300% in the last three years, making it the top performer stock in the power sector in the said period.

#9. Samvardhana Motherson International Ltd

Market CapRs. 52,145 Cr.
EPSRs. 1.27
P/E ratio64.2
P/B ratio2.52
FCF per share0.91
ROCE8.09 %
Debt to equity ratio0.68
Profit Growth (last 5 years)7.06%

Samvardhana Motherson is one of the leading manufacturers of automotive wiring harnesses, mirrors for passenger cars, plastic components, and modules for the automotive industry. 

The company supplies bumpers and interior components for large electric vehicles (EVs) and cosmetic parts for electric two-wheelers for the domestic market.

India’s largest automotive component major has received orders above Rs 20,000 crore in the first six months of  FY 2022-2023, making it a potential player in the EV sector.

#10. Hindalco Industries Ltd

Market CapRs. 105,787 Cr.
EPSRs. 61.6
P/E ratio7.64
P/B ratio1.16
FCF per share17.40
Debt to equity ratio0.74
Profit Growth (last 5 years)28.75%

Hindalco Industries Ltd. is a flagship firm of the Aditya Birla Group, primarily engaged in the production of Aluminium and Copper.

Hindalco is not only the largest downstream aluminum player in India but also the largest flat-rolled aluminum producer in the world.

In the Electric Vehicle Segment, two commodities will play a crucial role – Copper and Aluminium.

Aluminum is highly used in vehicle chassis manufacturing in the EV sector because of its lightweight of aluminum. Copper is used in the wiring harness of EV vehicles.

With an increase in electric vehicle demand, aluminum and copper consumption would also increase, which will improve the sales and profit growth of Hindalco as well.

Apart from electric vehicle shares in India, you can also read my two lists – the most expensive shares in India and top FMCG companies in India that would help you gain a better understanding of the best stocks in different sectors.

About Rajan Dhawan

Rajan has covered personal finance and investing for over 5 years. Previously, he was in the IT field for 8 years after completing his MCA but his deep interest in personal finance led him to become an investing expert. He is passionate about investing, stocks, startups, and cryptos.

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