Top 5 EV Manufacturers to Add to Your Watchlist

Indian companies are leaving no stone unturned to make sure they have a sizeable chunk of the EV market. Photo: Bloomberg
Indian companies are leaving no stone unturned to make sure they have a sizeable chunk of the EV market. Photo: Bloomberg


  • These five automakers are betting aggressively on the tectonic shift to EVs.

Earlier this year, we had written to you about 3 Indian Companies Betting Big on EVs.

In that article, we covered some of India’s biggest automakers and their investments in the electric vehicle space.

Since then, there have been a lot of new developments in the space. Indian companies are leaving no stone unturned to make sure they have a sizeable chunk of the EV market.

So here is an update on the automakers we wrote about last time. We have also added details on two more Indian automakers that are set to revolutionise the EV space.

#1 Tata Motors

As India’s largest electric vehicle manufacturer, it’s no surprise that Tata Motors is betting aggressively on this space.

As we wrote to you before, the company is a leader in the passenger EV segment. It clocks sales of more than 1,000 units of EVs every month.

So, what has Tata Motors been up to in the last few months?

The company recently completed the formation of its electric vehicle subsidiary Tata Passenger Electric Mobility (TPEML). The subsidiary will focus only on passenger electric and hybrid vehicles.

In October 2021, Tata Motors raised US$ 1 bn from investors TPG Rise Climate and ADQ by agreeing to sell an 11-15% stake in TPEML.

The deal values the subsidiary at over US$9 bn and the capital infusion is expected around March 2022. Tata Motors will also invest US$2 bn into the subsidiary over the next five years.

This new EV company will not own any manufacturing plants of its own but will instead rely on the passenger vehicle factories for output and remain asset-light.

TPEML has set itself an ambitious target of launching ten EVs over the next five years.

Apart from this, the group is also busy building what it calls Tata UniEVerse, an ecosystem that will leverage group synergies.

In the ecosystem, several Tata companies will together provide electric vehicle solutions to consumers to improve adoption in the country.

The plan is to bring down EV ownership costs to the level of a petrol or diesel vehicle by 2023.

In its latest quarterly result, Tata Motors reported a 14.7% YoY increase in revenue on account of its domestic passenger vehicle and commercial vehicle business.

The company also saw sales of its passenger EVs jump by a whopping 234% in the first half of the year, on account of high petrol prices and improved battery charging infrastructure across India.

#2 Mahindra & Mahindra

Next on our list is Mahindra & Mahindra (M&M).

The company is betting big on the tectonic shift in the automotive market and plans to invest 30 bn in EVs in the near term.

It recently announced its association with Jio-BP, a joint venture of Reliance and BP, for its electric vehicle business.

The partnership covers EV charging solutions by Jio-BP for M&M’s electric vehicles. This includes three and four-wheelers, quadricycles and small commercial vehicles.

With this association, M&M is aiming at a larger chunk in the Indian EV market. M&M expects electric vehicles to account for around 20% of its total sales volumes in India by 2027.

Its partnership with Jio-BP is expected to play a key role in that strategy.

The automaker is also working on introducing a battery swapping service for its EVs. This will reduce the downtime of its electric vehicles significantly.

For the September 2021 quarter, M&M reported a 12% YoY increase in revenue even as a global shortage of semi-conductors impacted production and sales.

The company’s auto business continues to maintain a strong booking pipeline for its key products.

#3 Hero MotoCorp

While Tata Motors and M&M are targeting the four-wheeler space, Hero MotoCorp is aggressively betting on EVs in the two-wheeler space.

The company’s electrification journey is expected to begin in 2022, with the company set to launch its first electric scooter by March.

While Hero MotoCorp’s core business still lies in the motorcycle segment, the company believes that scooters will lead the adoption of electric vehicles in the country in the near term.

Hero’s first electric scooter has been developed at the Hero MotoCorp CIT in Rajasthan and will be manufactured in Chittoor, Andhra Pradesh.

The electric vehicle (EV) project is progressing as per plans, and the Chittoor manufacturing facility in Andhra Pradesh is gearing up to produce the EVs.

To gain an edge on other manufacturers, Hero MotoCorp has decided to adopt Ather Energy’s fast-charging tech for its electric scooters. The company owns a 35% stake in the EV startup.

It has also partnered with Gogoro to roll out Hero-branded e-scooters with a swappable battery.

Gogoro is a global leader in urban battery swapping and smart mobility innovation which is based out of Vietnam.

In the latest quarter, Hero MotoCorp’s revenue fell 9.9% YoY as a delayed monsoon and an increase in prices hit festive demand.

However, with the economy gradually opening up, coupled with several other positive indicators, a swift revival in sales is expected in the fourth quarter.

#4 Olectra Greentech

Olectra Greentech is a new entrant on our list.

The company is a pioneer in electric bus manufacturing and is a market leader in the nascent yet growing electric bus market. It has a market share of 35-40%.

A part of Megha Engineering and Infrastructures, Olectra Greentech has developed its buses with technical support from China’s largest electric vehicle maker, BYD.

The company is currently sitting on orders for 2,000 electric buses worth 30-35 bn, which it plans to deliver in the next 12-18 months.

To meet the increasing demand for its buses, the company is setting up the country’s biggest electric bus factory with a capacity of 10,000 units on the outskirts of Hyderabad.

The factory will be set up with an investment of more than 6 bn.

Apart from buses, Olectra Greentech will also produce electric three-wheelers and trucks. The company is eligible for incentives under the central government’s production-linked incentive scheme.

In a joint venture with Etrio, another EV player, Olectra has won an order for 5,600 electric three-wheelers through state-run Convergence Energy Services.

Olectra will be supplying about 3,500 of these vehicles, which it has developed in-house.

The Hyderabad-based company has also tied up with a truck maker to develop electric trucks, which it plans to start producing next fiscal year.

The company does not rely on BYD for technology anymore and has all the capabilities in-house with a 50-strong R&D department. 

 For the September 2021 quarter, the company’s revenue rose by 42.2% YoY due to an increase in demand for its buses.

#5 Ashok Leyland

Last on our list is commercial vehicles (CV) major Ashok Leyland.

Ashok Leyland’s core competence lies in making intermediate commercial vehicles, light commercial vehicles (LCV), and medium & heavy commercial vehicles (M&HCV).

The company’s EV push will be done through UK-based Switch Mobility, a next-generation electric bus and LCV company.

The company's strategy is to use India as a manufacturing hub to make use of its existing facilities in the country, in addition to its facility in Leeds, UK.

Switch Mobility has more than 280 EVs in service covering over 26 m miles on a test basis.

Ashok Leyland has invested around US$136 m in Switch Mobility and expects the new entity to raise its own capital in the future.

Switch Mobility will be launching its first electric light commercial vehicle (e-LCV) in India soon. It has already secured 2,000 orders.

As part of its ramp-up, Switch Mobility has already signed customer agreements and letters of intent with leading logistics and e-commerce operators.

Executive Chairman Dheeraj Hinduja has made it clear that the company will focus on its stronghold which is buses and light vehicles in the EV space. It will not venture into e-cars.

The company is also looking at all options for the manufacture of batteries for its electric vehicles.

For the September 2021 quarter, Ashok Leyland reported a 44% YoY increase in revenue on account of volume recovery. It continues to remain confident and optimistic about the future.

Why EV stocks will continue to generate massive returns

All the hype surrounding EV stocks is for a good reason. Slowly, EVs are replacing internal combustion engine (ICE) vehicles.

As we saw above, the transition to 100% EVs will bring plenty of opportunities for EV makers.  

Happy Investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from


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