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- India’s automotive industry is going through a landmark transformation. Rising prices of petrol & diesel, climate concerns, and a growing citizen & vehicle population has made the industry look inwards, and the future looks bright inside and out.
- Electric vehicles are the future of India’s automobile industry. EV infrastructure is being set up at a rapid pace, the Indian government has given the green light towards manufacturing and setting up of EVs in India and the Indian EV market is buzzing with potential.
- From food and essential delivery drivers to millennials and even shipping companies, everyone is going green…or should I say electric? But are you charged up about investing in EVs & the future of India’s automobile industry?
- There’s a whole palette of EV investment options in India, that goes beyond EV stocks and EV companies. We’ll look at some of these invest in EV options here in this guide.
Size Of the EV Market in India
With more and more car companies, and other automobile companies venturing into the EV segment, EVs are spearheading the growth of not only India’s transportation sector but also India’s alternative investment sector, and financial experts and India’s investors are taking note.
In a report from Strait Research, the Indian electric vehicles (EV) market size was worth about USD 8,574.45 million in 2022.
The present market size, which is in 2024, estimates to be USD 34.80 billion and it has a potential for growth up to USD 110.74 billion by the year 2029, showing Compound Annual Growth Rate (CAGR) of about 26.05% over this forecast period.
This is as per a report by Mordor Intelligence.
From a variety of reports with different forecasting periods, it is clear that by the end of this decade, The market of EVs and EVs in India will surpass USD 100 billion.
EV Investment Options Other Than EV Stocks
Everyone’s looking to participate in the EV industry revolution. But investing in EV stocks, or stocks of big EV companies such as Tata Motors, comes with its own share of risks such as market volatilities, company specific changes and so on.
Here are some alternative investment options in EVs:
- Exchange-Traded Funds (ETFs): Think of ETFs as a basket of stocks. EV-themed ETFs allow you to spread your investment across multiple companies, reducing your risk exposure.
In India, ETFs like the Nifty CPSE ETF include EV-related companies, offering a diversified approach to investing in the sector.
- Lithium and Battery Technology: EVs are powered by lithium-ion batteries. Investing in companies involved in lithium mining, battery manufacturing, or battery technology can be a strategic move.
- Charging Infrastructure: As EV adoption grows, so does the demand for charging infrastructure. Companies involved in EV charging stations and infrastructure development could be the dark horses of the EV revolution.
- Renewable Energy: EVs go hand in hand with renewable energy. Investing in renewable energy companies can complement your EV investment strategy. After all, clean energy is the fuel that powers the EV revolution.
What is The EV Regulatory Landscape in India?
The Indian EV regulation framework consists of many policies, rules, and actions that are designed to encourage easy adoption as well as integration of the electric vehicle (EV) industry across the country.
Here are some steps taken by the government to integrate EVs in India, and aid investment in EVs:
National Electric Mobility Mission Plan (NEMMP) 2020: This plan talks about the method of government to encourage electric mobility and sets goals for EV usage and production.
Faster Adoption and Manufacture of (Hybrid and) Electric vehicles (FAME): Schemes under FAME give rewards for the acceptance of electric and hybrid cars, progress in technology, as well as setting up charging systems.
EV State Policies: In India, various states have devised their personal EV policies to encourage the shift towards electric vehicles. Delhi’s EV state policy is centred on enhancing air quality, offering purchase benefits and establishing charging facilities.
EV Regulation – Technical Standards and Safety Rules: To ensure safety and technical standards, there are regulations for EV charging infrastructure that include provisions about distributed generation resources as well as charging stations.
Time Your Entry in the EV Sector Wisely
It is not every day that the Indian automobile industry undergoes a transformative change. And whenever a big change happens in the automobile sector, it becomes the new normal for decades and even longer.
More and more companies are entering the EV sector, and car companies are making electric variants of already popular models.
The infrastructure is also changing. Investing in EV charging stations has emerged as a lucrative opportunity, with companies vying to establish a nationwide network of charging points.
Investors are looking for smart charging options that are convenient, dependable, and efficient. It is not only about quantity; quality also matters.
Speaking of investors, there’s a number of different types of investments flooding the EV sector. It’s not just traditional venture capital firms who are getting in on the action. There’s a surge in alternative investments, including private equity, hedge funds, alternative investment platforms, even crowdfund platforms.
Bottom Line: The Perfect Opportunity to Invest in EVs
The allure of EVs lies not only in their potential for financial returns but also in their alignment with environmental and social objectives.
From compact city cars to robust SUVs, there’s an electric option for every type of driver. This diversification of EV offerings is not only expanding consumer choices but also fuelling investor confidence in the market.
Like the name suggests, alternative investments represent a departure from the conventional. Alternative investments may not be for everyone, but are they the right choice for you? This is where we come in.
Assetmonk provides a web-based dynamic alternative investment platform, it empowers investors to own stakes in high-value commercial properties, opening up opportunities for them in alternative investments with significantly lower entry barriers.
In doing so; we are committed to presenting investors with a unique avenue for growth by putting them in pole position for reaping off of their financial investments.
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