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Best EV Investment Options In India
India’s electric vehicle (EV) market is poised for remarkable growth, promising a plethora of investment opportunities in 2024. The transition towards electric mobility, fueled by advancements in battery technology and government incentives, offers a fertile ground for investors looking to contribute to and benefit from the automotive industry’s green revolution.
Navigating the landscape of EV investments can feel a bit like planning that perfect vacation. You need to know where you’re going, the best paths to get there, and what to carry along. That’s where we come in, acting as your friendly guide, helping you compare the best EV investment options available in India in 2024.
Current state of the Indian EV market
The Indian EV market, characterised by its rapid evolution and burgeoning growth, stands at the forefront of an automotive revolution. With sales figures and consumer interest surging, the landscape in 2024 offers a lot of lucrative investment opportunities.
The Indian electric vehicle (EV) market is rapidly growing, driven by government initiatives, increasing awareness of e-mobility, and the need for sustainable transportation solutions. As of 2024, the market size is estimated at USD 34.80 billion and is expected to reach USD 110.74 billion by 2029, with a compound annual growth rate (CAGR) of 26.05% during the forecast period.
The market is projected to continue its upward trend, with the total units sold across all segments reaching 2,77,837 in 2023 and Uttar Pradesh holding the maximum share in EV sales.
The Shift to Electric: A Quick Glance Backwards
In recent years, the global push for sustainability and cleaner energy has seen the EV sector in India shift gears from a niche market to a mainstream contender. Government policies such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME India) Scheme have significantly catalyzed this shift
The growth of the EV market in India is expected to be driven by the increasing demand for eco-friendly transportation solutions, the need to reduce dependence on conventional energy resources, and the government’s ambitious targets for EV adoption.
Opportunities in the EV sector: Exploring the Investment Landscape
- Charging Infrastructure Development: Here lies a golden opportunity for investment. The demand for charging stations is skyrocketing, giving rise to a need for widespread infrastructure. From bustling cities to serene hill stations, the potential for setting up charging stations is vast and varied, ensuring your travels are seamless and your investments fruitful.
- Battery Innovation and Manufacturing: The heart of an EV is its battery, and with advancements in technology, companies diving into battery innovation and manufacturing are hitting the ground running. Investing in such companies not only supports the backbone of electric mobility but holds the promise of substantial returns as the sector grows.
- Electric Fleet Services: For the travel enthusiasts and entrepreneurs among you, here’s a thought – why not be a part of providing green travel solutions? Electric fleet services, especially in tourist hotspots, can offer an eco-friendly alternative to traditional travel, ensuring visitors can explore without leaving a carbon footprint.
- Ancillary Services: Every major shift brings with it a wave of supplementary needs. From maintenance and repair services for EVs to software solutions managing charging stations or battery health, the scope for ancillary services is expansive. Jumping into this arena could mean setting up a business that not only grows with the EV market but also contributes significantly to the travel and tourism industry.
Emerging opportunities in the EV sector in India
The government is encouraging private companies to enter the market and construct fast charging stations in response to this gap in the EV industry’s main support system—public charging. The FAME act has authorized the construction of 2,877 EV charging stations in addition to 1,576 stations dispersed across 16 highways and 9 motorways. As more EVs are sold and more people use them, private enterprises who enter the market to close the gap will inevitably see significant profits.
People are searching for EV investments as well as better EV vehicles to buy in order to take advantage of the early mover advantage. As a result, investors who are already familiar with the markets are becoming more interested in EV makers, clean energy, and battery sector firms. But investing in this emerging sector may also require you to look beyond volatile stock prices.
Retail investors now have access to investments in EV and other niche industries due to alternative investments. The upcoming installation of public charging stations by private companies is creating opportunities for investors to engage in structured investment options that offer fixed, higher returns and investment security. These options are excellent for portfolio diversification because they are not correlated with the market and serve as an inflation hedge.
Open Opportunity: A Fixed Income, Alternative Investment
Assetmonk currently offers a fixed-income product with a 12% fixed return and a minimum ticket size of INR 5 lakhs that is sourced from the EV public charging sector. The funding will support the establishment of public charging stations with fast chargers by a promising startup along Southern roads, which will benefit investors through revenue-sharing opportunities and connect eighteen cities, including Bengaluru, Chennai, Vizag, Hyderabad, Vijayawada, and Tirupati.
Bottom Line
As the EV market continues to evolve, so too does the landscape of investment opportunities. The key to successful investment in India’s EV sector in 2024 will lie in a balanced approach, combining thorough market research with a sustainable long-term vision.
The journey towards electrification of India’s automotive sector is not just about adopting new technology but about making strategic investments that promise to drive future growth. With a wide array of options available, now is the time to electrify your investment portfolio.
Assetmonk is a new-age Alternative investment platform that focuses on high-potential structured quality products from Real Estate. The platform offers high-potential long-term and short-term real estate investment opportunities with a high Internal Rate of Return (IRR) and flexible liquidity options, to its value investors.
