Introduction –
If I say that Google, Apple, Samsung and Tesla will be the main companies of the auto sector in the future, then what would you believe? Because today when we buy a car, what do we see? What is the average of the car? How is the service of the car, if you are buying a four wheeler, then how much technology is there in the vehicle, how much is the vibration, how is the services, the most important thing is how is the engine of the vehicle? But when the electrical vehicle comes in the market, then all this is going to change because the engine is not the engine in the electric vehicle, the important part of the vehicle will remain its battery system, and the technology of the vehicle etc.
In the very beginning, I said that if a company like Google, Apple starts making vehicles? The reason for this is also the same because the car of the future will be an electrical gadget like the mobile we use. The reason to tell all the facts here is the mistake that Nokia did when Android and iOS technology revolutionized the mobile industry, today that transmission, we are going to see in the future in the auto sector.
Therefore, who will benefit directly from the arrival of electrical vehicles, without thinking like this, it can be thought that the future auto player angle will be in electrical vehicles, knowing that and investing in it. Here, if we go through investment planning of five to fifteen years, then we will get the benefits of good investment in this sector. Looking only with open eyes, it cannot be said that the auto sector and its related companies will benefit.
Because we also have to keep in mind the changes taking place in this sector and in future foreign companies will also be looking at India as a big market. Our neighbor, China will also be making its strategy on this sector as it has been a major player in India in the mobile sector. Nevertheless, here today we are going to present you some facts about which stocks can give good returns in future in electric vehicle.
Electrical Auto Sector and Government Policy –
Through government policies, gradually, two wheeler, three wheeler, petrol and diesel vehicles will be changed in different areas, for this, the government of the states will also have tax facility subsidy, on many such promotional basis, the message of shifting to electric vehicles in India has given.
Due to this, in the coming time, we can see many companies related to the sector of electric vehicles for investment. If we look at these policies of the government, then first this change in the two wheeler sector will be seen by 2023, from this we can see that the shares of the two wheeler company in the first stock market are expected to be good for investment.
After that, according to the policy of the government, there is a target to shift the three wheeler sector to complete electrical vehicles by 2025, from this you can guess that the investment in it is going to be slow but this investment should be long term only then it can benefit you. Is. Four wheeler and passenger vehicles This sector is going to take some time to change, but its investments will also give good returns.
Government Scrap Policy –
In February 2021, the Government of India has announced the scrap policy of vehicles at the time of the budget, under which a lot of money from India’s budget goes to importing oil, it has been decided to reduce it, so the production of electric vehicles and scrap policy of old vehicles. Will play an important role.
Under this scrap policy of the government, old vehicles and those which cause pollution, such vehicles have been targeted under the first scrap policy. Due to this, the auto sector, which is on petrol and diesel today will gradually shift to electric vehicles, which will give a new impetus to the production of auto sector as the demand for new vehicles and regular demand will get a huge boost from this.
Electrical Auto Sector –
Electrical Auto Sector Under the policy of this government, in the next five-ten years, we will be completely shifted from petrol and diesel to electrical vehicles, this has brought a new energy in the auto sector because shifting the entire market to electrical vehicles and on regular sale Pay attention that we can see a good future for all the companies related to the auto sector.
There are going to be a lot of changes in the market like a sure mobile revolution, but a lot of things are going to happen. The entire technology of vehicles is going to change with the advent of electrical vehicles, because the company which was earlier specialized in making engines of vehicles, now instead of the company that we will bring technology like mobile in the vehicles, it will run a lot in the vehicle market.
For this, it can be assumed that the company which, is more powerful in the capital will occupy this market. 30% of the cost in electric vehicles is spent on the battery. Earlier, the company making the vehicle used to cost very less for the battery, so they can start their own battery production for the electric vehicles. Therefore, seeing many such changes in the auto sector in the future, we will have to invest in it.
Tata Group of Companies –
This could be the biggest company to invest in the share market in the future, because the entire eco-system for electric vehicles, all its companies are the Tata Group’s own company, so the production cost of making their vehicles will be much less than other companies. The company’s profit of margin will increase, so from the investment point of view, the winning company in the context of the Tata Group’s electrical vehicles can be a participant in its investment.
- Tata Motors
- Tata Power
- Tata Alexi
- Tata Chemical
- Tata Capital
Vehicle Manufacturing Companies –
The companies that make the most benefit from the policy of electric vehicles are going to benefit the most, in this we have seen about Tata Motors in the above point that all the products that are used in making electrical vehicles of the Tata Group are their own companies. This change is going to be beneficial for companies like Mahindra, Maruti, Hero Motors in the market because the government has given many subsidies and tax benefits for this, so we will see good development in the coming time.
- TATA MOTORS LTD
- MARUTI SUZUKI INDIA LTD
- HERO MOTOCORP LTD
- MAHINDRA & MAHINDRA LTD
- BAJAJ AUTO LTD
Vehicle parts manufacturing companies –
In electric vehicles, companies making vehicles do a lot of their work by outsourcing, in which they specialize in making different parts of vehicles, there are many such companies in the share market, whose past performance we can invest. We can buy shares from the main companies that make these vehicles at a slightly lower price, which we can do with the possibility of these companies getting good benefits from this policy.
- JAMNA AUTO INDUSTRIES
- MINDA INDUSTRIES LTD
- USHA INTERNATIONAL LTD
- RANE HOLDINGS LTD
- MAHINDRA CIE AUTOMOTIVE LTD
Software manufacturing companies for electrical vehicles –
Companies that make software for electric vehicles, we can see many changes in it, in which companies like Infosys, and Tech Mahindra can also come, Tata Group has already started work on it. Tata Elxi This company is a software maker that can sell this technology to other vehicle makers.
But with a lot of changes in the market, we will see more good companies who will make this software. In this field, American companies like Tesla, Admotech, are leading, but in India software companies can enter India in the future.
TECH MAHINDRA
TATA ELXSI
Battery manufacturing companies for electrical vehicles
There are many companies working in this field like Amarraja, Exide, Ever ready, but the production cost of electric vehicles will be 30% of battery, so it cannot be said that this market will remain as it is today. Still, there can be good benefits of investing in these proposed battery companies, but in the future many new companies may come in this field, whose past record you can invest in them.
- GOLDSTAR POWER LTD
- HIGH ENERGY BATTERIES (INDIA) LTD
- PANASONIC ENERGY INDIA COMPANY LTD
- EXIDE INDUSTRIES LTD
- AMARA RAJA BATTERIES LTD
Charging Stations for Electrical Vehicles –
Just like today we have to go to the petrol pump to fill petrol and diesel, similarly this setup is going to be done for electrical vehicles. In America, the Tesla Motor Company has kept this station free for Tesla Motors vehicles, it is a strategy to increase the sales of their vehicles. Could be Such a setup is with the Tata company and the Indian Oil company also and many new companies may join this sector in the future.
Regarding the service center of electrical vehicles, people do not have any option other than the service center of the companies like for petrol vehicles but it may be available in future. We will see which companies are investing or working in this.
- TATA POWER
- DELTA ELECTRONICS INDIA LTD
- MASS TECH
- ABB INDIA
- EXICOM
Tire Manufacturing Companies –
Like the sale of regular vehicles, this is the future growth of tire companies, but here the entire market of India is going to change due to electric vehicles, due to which tire manufacturing companies are going to be very profitable for investment in the future.
- MRF LTD
- APPOLO TYRES LTD
- CEAT TYRES LTD
- JK TYRES & INDUSTRIES LTD
- GOODYEAR INDIA LTD
Companies providing finance for vehicles –
Apart from the regular growth of the companies that finance the auto sector, it can be said that there is going to be a huge boom due to the production of electrical vehicles. In which companies like Bajaj, Tata, have their own finance companies, but there are many such companies in the market that do auto finance, they can give good profits in future.
- ICICI BANK LTD
- HDFC BANK LTD
- BAJAJ AUTO FINANCE LTD
- TATA CAPITAL
- KOTAK MAHINDRA PRIME LTD.
Conclusion –
In this way, we can see here that due to the policy of electric vehicles in the future, we are going to get good options for investment in the auto sector. But it is important to have your own research and market information. Like I have already told the beginning that touch screen mobiles had brought a revolution in the mobile industry.
In the same way, it can be said that with the advent of electric vehicles in the auto sector, the whole concept of the auto sector has changed and people will use this vehicle like a gadget like a mobile, laptop. Its changes will change very fast like mobile technology, which will depend on the modification system of any company, in which companies like Google, Apple, Samsung also enter this field, then it will not be a surprise.
Therefore, while investing in the auto sector in the future, this change becomes necessary to be a part of our investment strategy, not that a good company in the auto sector today should perform well in electrical vehicles in the future. Therefore, your investments should be for a long time keeping all these things in mind.
Short term investment New investors or those who do not have much knowledge about the stock market, investing on news or advice, such people would be a good option to make long investments. The Initial investment would be right in the two wheeler and three wheeler sector because According to the policy of the government, there will be changes in these two areas first.
In which companies to invest, it depends on your investment, if you want to take a big company, then it is expensive, it requires more capital. If the capital is less then it will be good to invest in small companies, but for that it becomes necessary to modify the company, so it would be good to take this decision very wisely.
