India’s push into electric vehicles opens up opportunities for companies in ancillary areas like battery manufacturing, according to an analyst at diversified financial services firm Motilal Oswal.
The move towards electric vehicles is “inevitable” both globally and in India, where higher fuel prices can make owning electricity-powered cars comparatively more affordable, Siddhartha Khemka, research director for retailers, told CNBCs on Monday “Street Signs Asia”. “”
“Adoption will increase once you have the infrastructure,” he said.
There are two basic types of electric vehicles: those based on batteries and hybrid vehicles that use both batteries and plug into an external power source such as a charging station.
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Most of the excitement in India’s electric vehicle sector is in side rooms where companies partner with global players, many of whom are keen to enter the lucrative market, according to Khemka.
“On the one hand you have the battery manufacturers who want to develop the battery for the electric vehicles, and on the other hand companies like Motherson Sumi who are involved in the electric part of the vehicles,” he said, adding: “You are getting a growing share of the ( Electric vehicles). “
Khemka said Motilal Oswal prefers Motherson Sumi and Exide Industries, which are up 29% and 11% respectively since the close on Monday.
Motherson Sumi works with automakers around the world in areas such as wiring harnesses, rearview mirrors, cockpits, bumpers, and more. Exide sells lead-acid batteries for automotive and industrial applications.
On the first weekend of 2021 in Kolkata, West Bengal, a lot of traffic and crowds were observed outside the Alipore Zoological Gardens.
Jit Chattopadhyay | SOPA pictures | LightRocket | Getty Images
Boost from Tesla
The EV sector in South Asia’s largest economy should get a boost from Tesla.
The US company founded Tesla Motors India and Energy Private Limited last month with a registered office in the Bengaluru technology center in Karnataka, Reuters reported. The newscast reported on Sunday that a state government document claimed that Tesla would open an electric car manufacturing facility in Karnataka.
CEO Elon Musk previously said on Twitter that Tesla cars would be available in the country starting this year.
India, for its part, is trying to reduce its reliance on oil and also reduce air pollution. That can boost the thrust in electric vehicles. In the last annual budget, the finance minister announced a voluntary vehicle scrapping policy to remove old vehicles that contribute to the country’s poor air quality.