Best EV Stocks in India 2025

An Introduction to EV Stocks in India

EV stocks in India are gaining traction among investors because of the sector’s highly promising growth prospects. Fortune Business Insights forecasts that the Indian EV market could expand from $3.21 billion in 2022 to $113.99 billion by 2029 — at a massive CAGR of 66.52%.

This growth is further driven by the Indian government's push for sustainable energy and its renewed focus on reducing carbon emissions. The demand for electric vehicles is also soaring, with EV sales shooting up by over 50% in July 2024 alone. Given the high potential for returns in the EV sector due to the increased adoption of EVs, this is an opportune time for investors to consider including EV sector stocks in their portfolios. 

Not sure how to find the best electric vehicle stocks in India? Samco Securities, your go-to source for investment and trading research and insights, can help you here. In this article, you will find the ultimate EV stocks list that can improve your EV investment strategy and offer insights into the best EV stocks in India.

Top EV Stocks in India 2025

Data as on October 2024

• Tata Motors Ltd.

A pioneer among EV stocks in India, Tata Motors Ltd. is strongly focused on developing electric vehicles that cater to both passenger and commercial segments. The company has created an end-to-end EV ecosystem using its group companies, such as Tata Power for charging infrastructure and Tata Chemicals for battery components. 

In terms of fundamentals, Tata Motors Ltd. ranks high in the EV stocks list with a strong return on equity (ROE) of 48.90%. Additionally, the company has registered a massive profit-after-tax (PAT) growth of 1082.46%, making it one of the best electric vehicle stocks to invest in. 

• Mahindra & Mahindra Ltd.

Another traditional auto manufacturer in the EV share list is Mahindra & Mahindra Limited. Although the company is known for its robust SUVs and combat vehicles, it has diversified well into the electric three-wheelers and electric cars space. With eight electric vehicles across segments, Mahindra & Mahindra has the largest electric vehicle portfolio among EV stocks in India. 

Mahindra & Mahindra Ltd. has a dividend yield of 1.10%, which is higher than the average of EV sector stocks, making it a good investment option for income-focused investors. The return on capital employed (ROCE) and ROE figures of 20.11% and 14.88% also look promising.   

• Bajaj Auto Ltd.

One of the more promising electric vehicle stocks, Bajaj Auto Ltd. has ventured into the EV market with a focus on electric scooters and auto-rickshaws. The company is leveraging its strong dealer network and technical expertise to expand its EV offerings.  

As far as fundamentals are concerned, Bajaj Auto Ltd. has a very low debt-equity ratio of just 0.07 and a strong PAT growth of 27.19% (FY24), which makes it one of the more financially stable EV sector stocks. The ROE and ROCE of 26.51% and 33.47 are very high compared to most other EV stocks in India.

• JBM Auto Ltd.

JBM Auto Ltd. is one of the few entities in the EV share list focusing entirely on commercial electric vehicles. The company has two electric buses in its portfolio and is investing heavily in creating charging infrastructure, making it one of the few electric vehicle stocks with good future growth potential. 

Unlike other EV stocks in India, JBM Auto Ltd.’s dividend yield is very low at just 0.08%, suggesting that it is a growth stock. Evidencing this fact is the company’s sales and profit growth percentages for FY24, which are 29.86% and 54.82% respectively. 

• Amara Raja Energy & Mobility Ltd.

Amara Raja Energy & Mobility Ltd. is among the vital EV sector stocks in India. A subsidiary of Amara Raja Batteries, the company is one of the few EV stocks in India focusing primarily on electric vehicle batteries and energy solutions. 

The company’s battery packs are widely used in electric three-wheelers and two-wheelers. Additionally, it also manufactures AC and DC fast chargers and portable EV chargers. Amara Raja’s fundamentals look encouraging with a PAT growth percentage of 27.85% for FY24 and a fair dividend yield of 1.30%.

Emerging Trends in the EV Sector

Before you invest in EV stocks in India, you need to be aware of the trends driving this emerging sector. This will help you identify the EV sector stocks poised for near-term and long-term growth. Check out the top trends in electric vehicle stocks and the sector they belong to.

• AI Technology

AI is reshaping India’s EV sector with advancements in autonomous features and energy optimisation. Tata Motors and Mahindra, for instance, are integrating AI in EV models to enhance battery efficiency and driving ease. This technology by companies offering EV sector stocks helps reduce energy consumption and improve predictive maintenance.

• Solar-Powered EV Solutions

Solar-powered EV solutions are gaining traction in India, with leading companies exploring large-scale solar charging options. Although the tech is still evolving, solar-integrated EVs can offer a sustainable alternative to traditional energy sources. In a sunny country like India, solar energy could significantly impact the EV ecosystem and bolster EV sector stocks too.

• EV Battery Innovations

Battery innovation is central to India's EV expansion. Companies like Amara Raja and Exide are working on battery tech that promises faster charging and better longevity. The Indian government’s Production-Linked Incentive (PLI) scheme for advanced chemistry cells further accelerates domestic battery production, lowers costs and boosts EV adoption.

Why Invest in EV Stocks?

Wondering if EV stocks in India are the right fit for your portfolio? Check out the top advantages of including companies from the EV shares list in your holdings.

• Growth Potential

EV stocks in India are experiencing unprecedented growth driven by government initiatives and increasing consumer adoption. Industry projections suggest the EV market could grow substantially in the coming years. This offers significant opportunities for early investors to capitalise on this transformative shift in transportation.

• Government Support

Companies in the EV stocks list are also benefiting from substantial government incentives like tax benefits, subsidies and infrastructural support. The FAME II scheme and various other state-level policies also create a favourable environment for EV manufacturers and ancillary businesses.

• Environmental Impact

The EV share list includes companies at the forefront of reducing carbon emissions in India. By investing in these businesses early, you can pursue potentially significant financial returns and also support sustainable transportation solutions in the country that address climate change concerns.

• Technological Innovation

EV sector stocks also often represent cutting-edge technology in batteries, charging infrastructure and vehicle design. Your investment in these companies can support projects for developing innovative solutions in autonomous driving, battery efficiency and smart charging networks.

• Economic Advantages

Electric vehicle stocks also offer exposure to cost-effective transportation solutions. As battery prices decrease and charging infrastructure expands, EVs become more economically viable. This can potentially lead to increased market share and investor returns. So, by including EV sector stocks in your portfolio, you can benefit from this growth trajectory.

Investment Considerations for EV Stocks

Due diligence is crucial before you invest in companies on the EV shares list. As a part of your analysis, you need to consider the following factors when you invest in EV sector stocks.

• Market Competition

When exploring EV stocks in India, you should carefully evaluate the competitive dynamics at play. With numerous players entering the market, it is important to assess each company's unique value proposition, market share and ability to maintain competitive advantage.

• Financial Health

Before investing in companies from the EV stocks list, take the time to analyse their financial statements, cash flow positions and funding requirements. Many companies require substantial capital for research & development and for scaling up their operations.

• Technology Risk

The EV shares list includes companies using various emerging or nascent technologies. So, it is vital to consider the scalability and commercial viability of these technological solutions because rapid innovations could make current technologies obsolete.

• Supply Chain Factors

When you evaluate EV sector stocks, ensure that you examine the resilience of a company’s supply chain. Battery material availability, semiconductor shortages and manufacturing capabilities are also key issues that can significantly impact a company’s growth potential.

• Regulatory Environment

Electric vehicle stocks are influenced by changing regulations and policies. If you want to invest in this sector, you must stay informed about evolving emission standards, subsidy programs and infrastructure mandates that could affect your chosen electric vehicle stock’s performance.

Future of EV Stocks in India

The future of electric vehicle stocks in India appears promising. Driven by government initiatives and increasing consumer interest, the Indian EV market is projected to grow from $34.8 billion in 2024 to $120 billion by 2030, at a CAGR of 22.92%. 

To leverage this growth opportunity in your investments, consider using Samco’s analytical insights and tools. Available free of cost on the Samco trading app, these insights can help you identify the best EV stocks in India and capitalise on their profit potential.