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Top Electric Vehicle Manufacturers in India – EVs Outlook & Future!

List of the Top Electric Vehicle Manufacturers in India: When it comes to travel new technologies just keep popping up around the world. These alternative technologies in transport are mainly based around electronic vehicles with many companies jumping on the bandwagon to get some traction before the industry gets a radical shift away from traditional fossil fuels.

This change can also be seen as catchup that existing companies are trying to play in the electric vehicle (EV) segment with companies like Tesla and the bars set by them before its too late. Today, we take a look at the electric vehicle segment in India and the top manufacturing industries for investors to watch out for in this segment.

Why electric and What is the plan ahead?

One of the major reasons why countries are forced into adopting an electric alternative is climate change. India according to Environmental Pollution Index (EPI) 2018 is ranked 178 out of 180 in terms of air quality. One of the strategies adopted to combat this has been the push for electric vehicles[EV]. This will not only improve the environment but also India’s overall economic health. India currently imports crude oil and which sets us back in a deficit of approx $60 billion.

The aim set by the government has been 100% electrification by 2030. This is a humungous target considering the early stages of adoption that we currently are in. The electric vehicle adoption rate in India is less than 1% according to a McKinsey&Company report. According to Bloomberg, in the six years leading up to October 2019, India has barely sold more than 8000 electric cars. If compared to countries like China these sales figured are achieved in less than 2 days.

Some state government realizing their role have tried to eradicate one of the major barriers to owning an EV i.e. the high initial cost. This can be seen in the example of Maharashtra where subsidies were announced amounting to 1 lakh for electric vehicles. Consequently, Maharashtra had the highest sales volume in 2017 in the Indian electric car market. The government has also realized that it is best to target their efforts towards the public transport system in the initial stages.

This is because the purchase of EV in the private sector will depend on major other factors like attractiveness etc. The public transport system being one of the most heavily used in a country like India will definitely offer a huge boost to the sector.

Top Electric Vehicle Manufacturers in India

The Indian EV industry being in its nascent stages does not have an established market leader in all vehicle types. There are 10+ major players existing in the 2 wheeler segment, 3-4 in Electric buses, and few in car manufacturing. The following are the top Electric Vehicle[EV] Manufacturers in India.

1. Mahindra Electric

Mahindra is the pioneer for EV in the Indian space. Being the first major EV manufacturer it launched Mahindra Reva, its first EV as early as 2001. The Mahindra Reva was India’s first electric car. Over the years Mahindra has gone ahead to set up a dedicated R&D center in Bengaluru.

Some of its other EV variants include the Mahindra E20 and eVerito. Mahindra however has not only focussed on the manufacture of EV’s but also battery packs and has partnered with various institutions in order to boost EV charging.

2. Tata Motors

Tata is Indias biggest automobile manufacturer It automobile segment ranges from the manufacture of cars, utility vehicles, buses, trucks, and defense vehicles. Its associate companies include Jaguar Land Rover and Tata Daewoo. But when it comes to the EV segment Tata is a new entrant when compared to Mahindra.

In India, Tata Motors has an industrial joint venture with Fiat. One of Tata’s major benefits has been its ability to use resources from around the world. Tata’s innovation efforts are focused on developing auto technologies that are sustainable as well as suited. With design and R&D centers located in India, the UK, Italy, and Korea. Tata Motors in collaboration with its subsidiary, the UK based Tata Motors European Technical Centre (TMETC), are looking to have a major play in the EVs market in India.

When it comes to EV’s, Tata has focussed on the Passenger Vehicles and Electric Buses market in India. When it comes to four-wheelers Tata offers 3 vehicles to pick from. The Tigor EV, Nano EV, and the Tiago electric variant. In the Electric bus segment, Tata expects its demand from State transport Unions. The expected demand is estimated to be around 400,000 buses in the long run.

Apart from EV’s, Tata has also focussed on setting up charging stations in its efforts to improve the industry infrastructure.

3. Hyundai

Hyundai burst into the Indian EV segment with its launch of the Hyundai Kona EV in India. The South Korean global giant in the world of automobiles has stated that Kona was specifically designed to suit Indian operating conditions. One of the USP’s of the vehicle is its 452km range in one charge. This suited perfectly with Indians ‘Kitna Deti hai’ demand when it comes to vehicles.

Just to put things in perspective the range difference of the Kona and other market leaders is in hundreds of kilometers. The Kona, however, has an Ex-showroom cost of Rs.23.8 lakhs making it extremely expensive for Indian markets. Addressing this Hyundai has however said that another EV is in developmental stages keeping affordability in mind in order to serve the mass market. This EV is expected to be ready to enter the market in the next 2-3 years.

4. Ashok Leyland

Ashok Leyland, the Hinduja Group’s flagship company, is the 4th largest bus manufacturer in the world and a market leader for trucks in India. The company has tied up with Sun Mobility in order to enhance its expertise in the vehicle domain.

Ashok Leyland designs electric variants specifically for Indian conditions and has also introduced battery swapping in electric buses to address e-mobility needs in the country. It has launched multiple electric bus variants like the Circuit, HYBUS, Electric Euro 6 Truck, and announced the iBUS. The immediate focus of the company, however, is currently in giving more thrusts to exports.

Other leading EV Manufacturers and associated industries

The Indian EV market being in its nascent stages is viewed as an opportunity waiting to be exploited. Other players that also have products in the EV market include MG Motors, Maruti Suzuki, Renault, Audi, Volvo, Hero, Ather, etc. An expansion in the EV industry will also see other associated industries catch on too. This includes the battery and EV chargers. Interests have been shown by many companies like Siemens, Schneider, Delta, etc.

But unfortunately, these companies will only move in once a significant demand arises in the public 4 wheeler segment. On the other hand, one of the major factors for the EV industry not expanding has been consumer concerns regarding the lack of Fast Chargers in India.

Unorganized and small players are dominating due to the limited scale of business. In order to combat this, the NITI Ayog is laying a key role in setting up EV chargers. There are currently 270 units of installed EV chargers in India. NITI Aayog has partnered with NTPC in order to set up 100,000 EV charging stations across India. Other government entities like BHEL have partnered with ISRO in order to develop batteries using Lithium technologies.

Most lithium requirements are currently imported from China, South Korea, Vietnam, Singapore, and Japan. Other players who have shown interest in the Lithium battery production business in India include Reliance, Suzuki, Toshiba, Denso Corp, JSW Group, Adani, Mahindra, Hero Electric, Panasonic, Exide Batteries, Amara Raja.

Closing Thoughts

In this article, we discussed the list of the top Electric Vehicle Manufacturers in India, their current work in EV segment, and future prospects. The Indian government had set up the aim of replacing all internal combustion engines with EV’s by 2030. A report from Mckinsey and Company from 2017 indicated that 40% of electrification was a more realistic picture of mobility in 2030. This report, however, was prior to the Pandemic. This, in turn, will further set back electrification in the industry for years to come.

In addition, the steps taken in order to enable acceptance of EV will not suit their main purpose if alternative means of electricity production are not implemented. Currently, up to 60% of the electricity is produced from coal. Although the government has set major aims to bolster the growth of EVs a lot more has to be done in order to ensure they are implemented.

September 2, 2020 Aron Almeida Uncategorized No comments yet

Is it Okay to Open Multiple Demat Accounts in India?

Is it okay to open multiple demat accounts in India?

Hi. Welcome to the day 6 on my ’30 days, 30 posts’ challenge, where I’ll be writing one interesting investing article daily for the next 30 days.

In the last few days, I received multiple emails to cover this topic- “Can I open multiple demat accounts in India?”. Therefore, I decided to write a blog post on this query.

Is it Okay to Open Multiple Demat Accounts in India?

The Simple Answer-

Yes, it is okay to have multiple demat accounts in India. You won’t face any legal problems. A person can open as many demat accounts as he/she wants.

Why there won’t be any problem while opening multiple demat accounts?

Each person is mapped with one PAN Card. Obviously, you cannot have multiple PAN Cards as it is unique for every person. Therefore, as long as your PAN Card is correctly connected with your demat account, all the equities that you buy will be mentioned as your property.

A person can open multiple demat accounts using the same PAN Card.

Quick Note: You have to open multiple demat accounts from different brokers. But, you cannot open two demat accounts with the same broker.

Also read: How to Invest in Share Market? A Beginner’s guide

Can you open multiple ‘Trading’ accounts with the same demat account?

Yes, it is possible.

You can open one demat account and link it with multiple trading accounts. For example- You can open one demat account at HDFC Sec and link it with different trading accounts like Zerodha, ICICI Sec, Motilal Oswal etc.

Here are few other points that you should also know-

If you want to enjoy the facilities of both discount and full-service broker at the same time– you can open multiple trading accounts with different brokers mapped to a single demat account.
Not all brokers allow opening only the trading account. For few, you have to open both demat and trading account at the same firm.

Pros and Cons of having Multiple demat accounts-

Although there isn’t any problem with opening multiple demat accounts, however, there are few significant advantages and disadvantages of doing so.

Advantages of having multiple demat accounts—

Frankly speaking, there are not many advantages to having multiple demat accounts.

The only advantage worth mentioning is that you can segregate your long-term investments and short-term/frequent trading in different accounts. For example- You can keep the stocks that you’ve purchased with a long-term vision in one demat account and your stocks with short-term aims in another account. This will help you to avoid confusions and bring discipline in your investment.

Disadvantages of having multiple demat accounts—

Having multiple demat accounts has more disadvantages compared to advantages. Few major ones are-

1. You have to pay Annual Maintenance Charges (AMC) for the multiple accounts:

There’s no free lunch in this world. If you’re having a demat account with a broker, you have to pay the annual maintenance charge. This amount will vary depending on your broker, but almost every broker charges AMC. Therefore, if you have multiple demat accounts, then get ready for paying multiple AMCs.

For example- If you have a demat account with ICICI direct (AMC= Rs 600) and another with Share Khan (AMC= Rs 441), then you’ve to pay an annual AMCs on both (total of Rs 1041 per year).

2. It is difficult to keep track of multiple demat accounts:

Let’s assume that you’ve 10 stocks in your first demat account and 8 in another, then it might be little difficult to continuously track both accounts.

3. Sometimes your account can also get freezed if you remain inactive for a specific long period of time:

Yes, it’s true. Many people forget the credentials (login and password) of their accounts when they are using multiple demat accounts. Moreover, they don’t even care to contact the customer care of that broker anymore.

Obviously, you’ll receive multiple notifications and alert from your broker before freezing your account. But if you remain inactive for a very long period of time, then they might freeze your account. And your stocks along with it (Relax your demat shares are with NSDL or CSDL and can be recovered). Still, to avoid any inconvenience, you should remain active on your accounts periodically.

Quick Explanation: The demat account is opened with your depository participant (DP) (i.e. your broker like HDFC Sec, ICICI direct etc), however, the shares actually remain in the custody of the depositories (CDSL or NSDL). When you open your account, you specify whether you’re opening your account with CDSL or NSDL. Therefore, even if your account gets freezed or your broker gets bankrupted, you can recover the stocks from the depository.

Also read: How to find the best stockbroker that suits your needs and get started in the Indian stock market?

Bottomline

The straight answer to the question- ‘Is it okay to have multiple demat accounts in India?’ is YES! It is okay to have multiple demat accounts in India. However, before opening your second or third demat account, please reconsider about the advantages and disadvantages of having multiple accounts.

Kritesh Abhishek

Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting

www.linkedin.com/in/kriteshrules/

July 15, 2018 Kritesh Abhishek Investment Basics, Uncategorized 6 comments

30 days, 30 Posts Challenge -Let the learning begin.

Hi,

This is Kritesh. I hope you are doing well.

I’m writing this short post to announce that I’ll be doing a ’30 days, 30 posts’ challenge which starts today. This means that I’ll write one interesting investing article every day for the next 30 days. The blog posts will be published between 10 AM to 11 AM (IST) daily.

I’ve made a small list of topics that I’ll cover in this challenge. Nevertheless, I would love to hear your suggestions, and I will do my best to include as many of the topics you propose in a blog post or maybe even a short video. I may not be able to get to all of them, but I’ll do my best.

You can send your suggestions by simply commenting on this blog post. Else, if you’re using our mobile app, you can directly send a topic request from the app.

(Quick note: You can stay updated with the Trade Brains’ upcoming articles by downloading our learning app where you’ll receive daily notification of every new post. Here’s the link to download Trade Brains’ android app.)

I’m excited about this challenge and firmly believe that it will be beneficial to all our blog readers. Thanks again for your support, and I hope to hear from you soon.

Let the learning begin.

Thanks and regards,
Kritesh Abhishek
Founder, Trade Brains.

P.S. I know that many of you might be thinking that shouldn’t a 30-days challenge start on the first day of a month or at least Monday… Well, sometimes you got to do what you got to do. Anyways, new year or new month resolution don’t work, do they? Awaiting your reply. Cheers!!

Kritesh Abhishek

www.linkedin.com/in/kriteshrules/

July 10, 2018 Kritesh Abhishek Uncategorized 6 comments

Invest Like a Legend: Dolly Khanna Success Story [Portfolio, Bio & More…]

Dolly Khanna Success Story:

Every market produces players- those who churn one multi-baggers after another. Dolly Khanna, although the name may not be quite well known as of Rakesh Jhunjhunwala, but she is doing quite well off. Her portfolio was quite a mystery for a long time! She has not been interviewed or known before until she bought 1% stake in a company and Indian law makes it compulsory to disclose it to the exchange. Her stake is more than 1% of 14 listed companies now.

Dolly Khanna, the name we hear along with Rajiv Khanna. The couple is based on Chennai. Rajiv Khanna has graduated as a chemical engineer from prestigious IIT Madras. During their initial days, they raised capital from the sale of family business named ‘Kwality Milk foods’ to Hindustan Unilever in 1995. Since then the golden couple has not looked back. She is into the stock market since 1996 and her portfolio is managed by her husband Rajiv Khanna. Rajiv Khanna is widely known as a brain behind Dolly Khanna’s holdings in the equity market. Her holdings range from the plastic company to the pressure cooker manufacturer.

What makes it interesting is that her stock picks perpetually becomes mega multi-baggers. The couple is quite accurate and expert in picking small potential businesses. Khanna’s are named among the top individual players of the Dalal Street. In 2014, she picked up Nilkamal (India’s top manufacturer of Home and office furniture), the stock which surprisingly has gone up 900% (from Rs 197.30 on March’14 to Rs 1966 as of March’17) in past 3 years, nearly 10 times.

Their first multi-bagger in their portfolio was Hawkins Cookers. They kept buying stocks till June’09 at the price of 130-140. Today is stock is worth Rs 3400 and also the company has given 70% of its profit as dividends.

Avanti Feeds, Nilkamal, Rain Industry, Emkay Global, NOCIL, PPAP Auto, Sterling Tools, Thirumalai Chemicals, Asian Granito are the few examples of her stocks that went to become multi-baggers once she added them to her portfolio.

Here is the partial portfolio of Dolly Khanna as of December 2017.

Stock Name	CMP (Rs)	% Change	P/E Ratio	Nos of shares	Value of portfolio	% of Portfolio
Rain Industries	386.3	-1.15	19.09	86,30,115	₹ 3,33,38,13,425	38.77%
Manappuram Finance	104.85	-2.74	12.83	95,29,586	₹ 99,91,77,092	11.62%
NOCIL	203.1	0.4	48.09	32,16,039	₹ 65,31,77,521	7.60%
Thirumalai Chemicals	1910	2.37	13.12	1,67,221	₹ 31,93,92,110	3.71%
Srikalahasthi Pipes	337.9	-1.72	9.33	6,36,923	₹ 21,52,16,282	2.50%

(Source: Rakesh-Jhunjhunwala.in)

Rain Industry is the prime target of her investment followed by Manappuram Finance, NOCIL, Thirumalai Chemicals and many more. Her another interesting investment is in Trident where she holds 1.03% of the stake as of Dec’16. Since her investment, the price has risen up to 82.25 as of March’17 form 57.55 on Dec’16, giving 42.92% return, She recently bought a lot of shares of Butterfly Gandhimathi, which is also favorite of Ashish Kacholia. But her main target is Rain Industries where she bought 1.27% of the equity in June’17 and increased it up to 2.57% of equity until December’17.

Nevertheless, if the couple sells some stock, then it doesn’t always mean that they have lost their confidence in the company. It’s just that they might have found something else that’s worth more investing. Avanti Feeds is such example where she sold many of them even at low price and price went even high after the sell-off. Though Avanti had given her a fair amount of gain even at that stage.

The above stocks (along with some others) make up around INR 1 billion. as a net worth. Also, there are few stocks which are not yet disclosed to stock exchange as they are below the statutory limit for reporting. So, the aggregate will definitely roar above INR 1 billion!

During a seminar, Rajiv Khanna said,

“Investors have to move beyond value investing and look at growth stocks if they want to find multi-baggers for their portfolio.”

Generally, the couple is a believer in long-term investment, but sometimes they also sell off the stock if it’s giving them a pretty sum of returns at that stage. Rajiv Khanna says that he relies on public information to make his investment, unlike some market analyst who bothers themselves talking to management of companies.

So how do they decide? Here are his words :

“Like in tennis you play different games on different courts – hard court, clay court and lawn, we also study the market situation and pick our stocks accordingly. It can be either a value stock, growth stock, momentum stock or buying based on technicals”