- Automobile companies with more customer reach and market share are believed to benefit in future on the launch of electric vehicles segment
Electric vehicles market in India is steadily going to take off, not at the rate that the government considers it to be, but the industry might get pretty big moving ahead.
These electric vehicles run on rechargeable batteries. To make it more efficient such that less energy is consumed while driving, the components of these vehicles are made from lightweight and high-quality plastic or fiber.
Since the main component requirement of these vehicles is battery, this particular industry will see a tremendous growth in future. Along with this, the companies which produce high quality plastics will get a boost.
utomobile companies with more customer reach and market share are believed to benefit in future on the launch of electric vehicles segment.
Considering this, there are few companies which can be focused on by investors.
The company has a wide reach in Indian markets and is one the most trusted by Indian car owners.
The company is going to launch its electric vehicle Maruti Suzuki Wagon R electric vehicle in the second half of 2021. Provided the infrastructure developments also go hand in hand with the launch of electric vehicle, the car will see a good sale in future.
2. Amar Raja Batteries
As the main component of the electric vehicles is battery, India's second-biggest traditional battery maker Amara Raja is looking to build a Lithium-ion assembly plant soon. The firm is already working in collaboration with different state governments to promote the use of electric vehicles. They have collaborated with Delhi government to set up charging station. Amara Raja launched EV charging stations and battery swapping stations in collaboration with Tirupati Municipal Corporation along with a fleet of electric auto-rickshaws as part of the central government’s Smart Cities program.
3. Minda Industries
World’s best performing Indian auto parts maker Minda Industries will get a boost from the electric vehicle market. The company is in touch with original equipment manufacturers for possible EV-compatible systems and is evaluating existing products to see how they will fit into the market. The company has already increased the R&D costs to enter the electric vehicle segment to capitalize on the opportunity.
Gaurav Garg is head of research at CapitalVia Global Research Limited
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