Since the launch of electric vehicles in India, consumer demand has surged yearly, boosting the EV industry's growth and driving up stock prices due to premium features and rising popularity.

According to JMK Research and Analytics, a private research and consulting firm, the growth of electric vehicles in India over the past two years has witnessed steady and stable growth.

The following table expounds on the overall growth of each electric vehicle in its category:

Type of EV	Total Sales in 2023 (Units)	Total Sales in 2024 (Units)	Total Growth
EV 2 Wheeler	9.2 Million	12 Million	29.73%
EV 3 Wheeler –Passenger	5.2 Million	6 Million	15.23%
EV 3 Wheeler Cargo	0.6 Million	0.9 Million	44.63%
EV 4 Wheeler Car	0.5 Million	0.07 Million	2.43%

The contemporary economists of India predict that the realm of electric vehicle market will hit USD 117.78 billion by the year 2032. Many wealth-amassing persons take this prediction quite seriously and start probing about the best EV stocks in India.

What is EV Stock?

For Example, Yogesh, a software engineer in Noida. In May 2020, during the early phase of the COVID-19 pandemic, he anticipated a shift towards sustainable mobility. So, he invested in Mahindra & Mahindra EV stocks, buying 100 shares at ₹436.65 each, totalling ₹46,665.

Read More – Best Long-Term Stocks to Invest in

Fast forward to May 2025, Mahindra’s share price rose to ₹2,928.30. Now, his 100 shares are worth ₹292,830. That’s a profit of ₹246,165, all from believing in the future of electric vehicles.

Why EV Stocks Are Gaining Popularity?

Rise in electric vehicle demand.
Push for green and sustainable transport.
High long-term returns.
Government incentives for EV companies.

Yogesh’s EV Stock Journey:

Detail	Value
Stock Price in May 2020	₹436.65
Stock Price in May 2025	₹2,928.30
Total Stocks Owned	100
Initial Investment	₹46,665
Value in 2025	₹292,830
Profit Earned	₹246,165

Investing smartly in India’s best EV stocks can truly grow your wealth.

Significance and Popularity

The rising prices of petrol and diesel, driven by current global economic conditions, have become unbearable for both private and commercial vehicle owners. As a result, many are shifting to electric vehicles (EVs), which offer long-term savings with a single charge replacing repeated fuel costs.

This transition is fueling interest in EV stocks in the Indian market.

Supporting this shift, the Government of India has allocated ₹7,484.6 crores (US$859.24 million) for EV development in the FY 2025 Union Budget, as reported by market analyst firm Canalys.

Year	Total Units	Total Growth
2022	40,000	NIL
2023	95,000	114.8%
2024	1,55,000	65.6%
2025	3,00,000 (Expected)	90.1% (Expected)

Why should you invest in EV Stocks?

The global economy prioritises reducing carbon footprints and promoting sustainable development. Governments worldwide support this by enforcing eco-friendly laws and offering tax benefits, incentives, and subsidies to encourage renewable energy-based manufacturing.

The following factors of EV stocks boost the electric vehicle manufacturing sector in India:

Factors	Descriptions	Example
Government Support	The government of India has initiated schemes like FAME (Faster Adoption and Manufacturing of Vehicles) and PM-E Drive, garnered widespread support from investors and the public.	Totally 11,70,241 two-wheelers were sold in the FAME scheme.
Rising Awareness	The awareness of fuel prices and dedication to protecting the environment from the carbon footprint have ignited the people to prefer electric vehicles.	At present, 8% of Indians prefer electric vehicles.
Accessibility	The production of battery technology, with reasonable costs, has increased production units in India, thus becoming more accessible for everyone.	Karnataka is leading first in the total number of public charging stations with a count of 5,675.
Infrastructure Expansion	As the demand for electric vehicles has risen, the government has gradually expanded the EV infrastructure in various places in India.	Under the PM E-Drive scheme, ₹ 10,900 crore is sanctioned for the development of EV industries.

Best EV Stocks in India

In the contemporary market of the EV sector in India, there are many companies that promise returns from their stocks. However, the key players of the EV market bring tremendous change to their revenue, which also helps the shareholders to yield returns and profit from the total number of purchased stocks.

The following table enumerates the best EV stocks in India:

Company Name	Stock Price	Market Cap (Rs. Crs)	P/E Ratio (%)	Dividend Yield (%)	Return on Equity - ROE (%)
Maruti Suzuki India Ltd.	₹ 12,406	₹ 3,90,047	26.4	1.03	16
Mahindra and Mahindra Ltd,	₹ 2,926. 20	₹ 3,63,881	29.4	0.69	18
Tata Motors Ltd.	₹ 652	₹ 2,40,023	9.25	0.85	28.1
Bharat Electronics Ltd.	₹ 311.35	₹ 2,27,589	53.7	0.56	29.3
Bajaj Auto Ltd.	₹ 7,836.50	₹ 218,840	32.6	2.45	22.8
Vedanta Ltd.	₹ 415.05	₹ 1,62,320	12.2	9.96	38.8
Hindalco Industries Ltd.	₹ 632.10	₹ 1,42,047	8.60	0.55	14.5
Samvardhana Motherson Industries Ltd.	₹ 132.55	₹ 93,266	28.3	0.56	12.5
Hero Motorcorp Ltd.	₹ 3,740.50	₹ 78,814	19.2	2.74	23.7
Exide Industries Ltd.	₹ 355.15	₹ 30,187	41.6	0.51	5.93
Himadri Speciality Chemical Ltd.	₹ 430.90	₹ 21,279	42.9	0.12	16.4
Amara Raja Energy & Mobility	₹ 964.30	₹ 17,649	20.7	0.99	12.5
Servotech Renewable Power System Ltd.	₹ 121.84	₹ 2,739	110	0.03	19.0

Factors to Consider Before Investing in EV Stocks

1. Price Fluctuations: All the stocks of EV companies are subject to change, by the market situation. Therefore, an investor has to

examine a company’s portfolio before becoming its shareholder.

Example: The Mahindra and Mahindra stock in 2020 was ₹ 436.35, and presently at ₹ 2928.30.

2. Technological Changes: All the electronic gadgets, tools, and equipment are subject to upgrades and advancements. These changes can affect the stock’s price and face value.

Example: Tata Motors Ltd. share price hits ₹ 709.15 with a decline in electric car sales, as other people started preferring other competitors also.

3. Competition: Today, the EV market has tough competition, pertaining to the various changes in the global market and demand. So, an investor should find a reliable company to purchase the stocks.

Example: Companies like Bajaj Auto, Maruti Suzuki India, TVS Motor Company and many others have robust competition in the EV market.

4. Government Policies: The government may change its policies on EV market. So, an investor should keep themselves updated on all the government policies and schemes regarding the EV market.

Example: The Union Budget for Fiscal Year 2026 did not allocate funds for the FAME scheme.

5. Revenue and Turnover: Before buying the stocks of an EV company, it is advisable to make an in-depth analysis of the company’s revenue and profit. It will help to find its reliability.

Also Read – Top Semiconductor Stocks in India

Example: Maruti Suzuki India Ltd.'s market capitalisation is ₹ 3,90,047, which yields more returns to its shareholders.

Conclusion

It is true that the market for EVs is abundant and more promising. The government of India have promised to boost the EV sector in the upcoming years. Indeed, the rise in fuel costs has made people prefer electric vehicles, which are affordable and reliable. Therefore, it is evident that the stocks of the EV companies will gradually increase shortly.

FAQs

1. Do the EV stocks have a good future in India?

Yes, EV stocks good future in India, due to the demand for electric vehicles from consumers.

2. As a beginner, can I also invest in EV stocks?

Anyone from India can invest in EV stocks, governed by the rules of the Securities and Exchange Board of India (SEBI) and the National Stock Exchange (NSE).

3. Which is the best EV company for stock investment?

A company which has the potential to give you high returns with its huge profit can be considered the best EV company for stock investment.

4. How can I purchase EV stocks?

You need to have a demat account for buying and selling EV stocks.

5. Can I purchase the EV stocks online?

Yes, you can purchase it online. However, it is advisable to check the validity of the website and its brokerage firm.

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