Electric vehicles (EVs) are becoming one of the fastest-growing sectors in India, offering a cleaner and greener alternative to traditional fuel-based vehicles. With the rising popularity of EVs, many investors are searching for the best EV stocks in India to invest in for long-term growth. As the country pushes towards sustainable transportation, EV stocks are gaining attention for their high growth potential in the coming years.
Government schemes like FAME II and Electric Mobility Promotion Scheme (EMPS) have boosted the EV market by offering subsidies and encouraging companies to expand their EV production. Additionally, major players are investing in building EV charging stations and battery technology, making the entire EV ecosystem more accessible across India.
As the demand for electric vehicles grows, EV stocks have become one of the most promising sectors for long-term investment. In this blog, we will explore the top EV stocks in India to invest in 2025, helping you identify companies that are leading the electric revolution and could offer multibagger returns in the future.
Overview of Contents
Best EV Stocks in India to Invest for Long-Term Returns (2025 Edition)
| Stock Name | Market Cap (₹ Cr) | 1Y Return (%) |
|---|---|---|
| Mahindra and Mahindra Ltd | 3,70,060.74 | 36.34% |
| CG Power and Industrial Solutions Ltd | 89,897.52 | 22.59% |
| Eicher Motors Ltd | 1,36,317.15 | 30.82% |
| TVS Motor Company Ltd | 1,17,971.92 | 2.69% |
| Maruti Suzuki India Ltd | 4,00,056.84 | 2.47% |
| Samvardhana Motherson International Ltd | 90,500.83 | -1.68% |
| Bajaj Auto Limited | 2,44,685.52 | -5.55% |
| Hero MotoCorp Ltd | 81,715.43 | -21.23% |
| Reliance Industries Ltd | 16,71,045.07 | -22.64% |
| Tata Motors Ltd | 2,49,492.66 | -36.92% |
Company-Wise Analysis of Top EV Stocks in India for 2025
India’s EV market is rapidly growing, with many companies playing a key role in the country’s transition towards sustainable transportation. Investing in EV stocks can offer long-term growth opportunities as companies continue to innovate and expand their electric vehicle business. Below, we’ve listed some of the best EV stocks in India that are leading the EV revolution with their advanced technology, strong market presence, and future growth potential.
Mahindra and Mahindra Ltd
Mahindra & Mahindra Ltd is one of India’s leading automobile companies, founded in 1945 by KC Mahindra, JC Mahindra, and Ghulam Mohammad. The company holds a 21% market share in SUVs and 50% in light commercial vehicles (LCVs) as of Q3FY24, making it a market leader.
It dominates the tractor industry with a 42% market share, maintaining the top position for 40 consecutive years. Mahindra is also the market leader in the electric 3-wheeler (E-3W) segment with 59.5% market share in 9MFY24. The company has a strong global presence in countries like the USA, Brazil, Mexico, and Turkey. Additionally, it is investing Rs. 200 crores in a new plant at Pithampur for agri-machinery production. Mahindra also operates in power backup solutions, construction equipment, and owns the iconic Jawa Motorcycles brand.
- Market Cap: ₹ 3,25,805 Cr
- 52-Week High / Low: ₹ 3,276 / ₹ 1,789
- Stock P/E: 26.3
- Book Value: ₹ 567
- Dividend Yield: 0.80%
- ROCE (Return on Capital Employed): 13.6%
- ROE (Return on Equity): 18.4%
- Face Value: ₹ 5
✅ Pros:
- The company has been consistently paying healthy dividends with a payout ratio of 19.3%, which is a good sign for investors looking for passive income.
- Steady profit growth over the years.
❌ Cons:
- The stock is currently trading at 4.60 times its book value, which makes it overvalued compared to its intrinsic value.
- Low promoter holding of 18.5%, which can sometimes indicate lack of confidence from promoters.
Shareholding Pattern (Sep 2024)
The ownership of the company is distributed as follows: Promoters hold 18.53%, Foreign Institutional Investors (FIIs) possess 41.18%, Domestic Institutional Investors (DIIs) account for 26.79%, and the Public holds 13.5% of the shares.
| Type | Percentage |
|---|---|
| Promoters | 18.53% |
| FIIs | 41.18% |
| DIIs | 26.79% |
| Public | 13.5% |
Growth Overview
| Category | 3 Years | 5 Years | 10 Years |
|---|---|---|---|
| Sales Growth | 23% | 6% | 7% |
| Profit Growth | 80% | 17% | 10% |
| Stock Price CAGR | 52% | 40% | 15% |
| Return on Equity (ROE) | 17% | 12% | 13% |
Mahindra & Mahindra Ltd is a strong performer in the automobile sector with consistent profit growth and increasing foreign investor confidence. However, the stock is currently overvalued and has low promoter holding, which investors should consider before making any investment decisions.
Eicher Motors Ltd
Eicher Motors Limited, incorporated in 1982, is a leading player in the Indian automobile industry and the global leader in middleweight motorcycles. The company operates under two key business verticals – Royal Enfield and VE Commercial Vehicles (VECV), a joint venture with Sweden’s AB Volvo. Royal Enfield manufactures iconic motorcycles such as the Classic 350, Bullet 350, Meteor 350, Hunter 350, Himalayan 450, and Scram 411, along with protective riding gear, casual apparel, and accessories. The brand launched three major models in FY24, including the Bullet 350, Shotgun 650, and Guerrilla 450, contributing to a 52% rise in motorcycle sales between FY22 and FY24. Non-motorcycling segments like apparel, spares, and services accounted for 15% of FY24 revenue.
VECV, in which Eicher holds a 54% stake, manages truck and bus operations, auto components, and technical consulting services while handling Volvo Group’s Indian truck sales and service network. The JV experienced a 72% revenue growth between FY22 and FY24, driven by a 50% increase in sales volume. Eicher Motors reported a consolidated revenue growth of 11% TTM, with a compounded profit growth of 16%. The company’s market share in the domestic motorcycle segment stood at 7.2% in Q1 FY25, while it dominated the 250cc-750cc mid-size motorcycle segment with an 88.1% share. The company boasts a healthy ROCE of 31.1% and ROE of 24.2%, making it one of the most profitable players in the automobile sector.
TVS Motor Company Ltd
TVS Motor Company Ltd (TVSM) is one of India’s leading two-wheeler and three-wheeler manufacturers with a strong presence in over 60 countries. It is the only company in India operating across motorcycles, scooters, and mopeds segments. The company holds around 25% market share in the Indian scooter segment as of H1FY24. TVS offers popular products like the TVS Jupiter, Apache RTR series, Raider, and iQube Electric Scooter. The company has a manufacturing capacity of 55 lakh two-wheelers and 2 lakh three-wheelers per year across its plants in Tamil Nadu, Karnataka, and Himachal Pradesh.
In FY24, TVS reported a market cap of ₹ 1,09,365 crore, with a 26.6% return on equity (ROE) and 14.7% return on capital employed (ROCE). Around 28% of its revenue comes from exports to key markets like Nepal, Nigeria, UAE, Kenya, and Bangladesh. The company is heavily investing in electric vehicles, committing ₹ 1,200 crore towards EVs and future technology in partnership with the Tamil Nadu government. TVS has also collaborated with BMW Motorrad to co-develop electric vehicles and partnered with Tata Power to expand EV charging infrastructure. With new EV launches planned in the 5-25kW segment and global expansion of its iQube range, TVS Motor is positioning itself as a major player in the electric mobility space.
Maruti Suzuki India Ltd
Maruti Suzuki India Ltd, established in 1981, is a leading automobile manufacturer in India. The company became a subsidiary of Suzuki Motor Corporation (SMC), Japan, in 2002, with SMC currently holding 56.28% of its equity stake. Maruti Suzuki dominates the passenger vehicle segment in India, holding a market share of 45%. The company’s principal activities include the manufacturing, purchase, and sale of motor vehicles, components, and spare parts. It is the largest subsidiary of SMC in terms of production volume and sales.
The company boasts a market capitalization of ₹3,73,968 crore, with a current stock price of ₹11,895. Over the past year, the stock has traded between a high of ₹13,680 and a low of ₹10,725, with a Price-to-Earnings (P/E) ratio of 25.7. The company maintains a healthy dividend yield of 1.04% and has been consistently paying dividends with a payout ratio of 36.7%. Maruti Suzuki has a Return on Capital Employed (ROCE) of 21.8% and a Return on Equity (ROE) of 16.8%. One of its key strengths is being almost debt-free, which adds to its financial stability.
In comparison with its peers in the automobile industry, Maruti Suzuki outperforms in terms of market share and consistent profitability. Its quarterly sales have shown steady growth, with the latest quarter reporting sales of ₹38,764 crore and a net profit of ₹3,727 crore. The company’s operating profit margin (OPM) has improved to 13%, showcasing efficient operations. Over the years, Maruti Suzuki has maintained consistent growth, with a compounded sales growth of 11% in the last three years and a compounded profit growth of 45% during the same period.
Despite its strengths, the stock is currently trading at 4.20 times its book value, which is considered high. Additionally, the company has delivered a relatively low ROE of 12.3% over the last three years. However, with its strong market position, consistent profitability, and almost debt-free status, Maruti Suzuki remains a reliable player in the Indian automobile market.
Motherson Sumi Systems Ltd
Motherson Sumi Systems Limited (MSSL), now known as Samvardhana Motherson International Limited (SAMIL), is one of India’s largest auto ancillary companies. The company is a leading global manufacturer of automotive components, serving top original equipment manufacturers (OEMs) worldwide. Motherson is among the world’s largest manufacturers of exterior rear-view mirrors and a prominent player in wiring harnesses, polymer-based interior and exterior modules, vision systems, and metal products. The company’s wiring harness division is one of the most vertically integrated segments, offering design, development, and manufacturing services across automotive and non-automotive sectors. Their Vision Systems division supplies interior and exterior mirrors and camera-based detection systems to major OEMs globally. Additionally, the company produces polymer products, metal components, aerospace solutions, retail and services products, and technology solutions.
Motherson follows an aggressive acquisition strategy, having completed 25 acquisitions since 2002, turning around distressed companies and strengthening its global presence. The company operates 270 facilities across 41 countries, with 89% of its revenue coming from international markets, including Germany, the USA, China, and France. Major customers contributing to its revenue are Mercedes-Benz, Audi, Volkswagen, and BMW. The company aims to achieve ₹2.6 lakh crore in sales by 2025, expanding into aerospace, logistics, healthcare, and technology solutions. In 2022, Motherson restructured its business by demerging the domestic wiring harness business into Motherson Sumi Wiring India Limited (MSWIL) and merging Samvardhana Motherson International Limited (SAMIL) into MSSL.
With a market cap of ₹83,169 Cr, Motherson trades at ₹118 with a P/E ratio of 20.2. The company maintains a healthy dividend payout of 27.7%, though it faces challenges such as low ROE (8.51%) and increasing debtor days. Despite these concerns, Motherson’s global footprint, diversified product portfolio, and consistent acquisitions position it as a key player in the global auto components industry.
Bajaj Auto Limited Company
Bajaj Auto Limited, the flagship company of the Bajaj Group, is a leading manufacturer of two-wheelers and three-wheelers based in Pune, India. The company exports its products to 79 countries across Latin America, Southeast Asia, Africa, and other regions, making it the largest exporter of two and three-wheelers from India. Bajaj Auto holds a 48% stake in KTM, a global brand that manufactures sports and super sports motorcycles, which was initially 14% in 2007 when the company first acquired KTM. The company is the second-largest player in the domestic motorcycle segment and the largest three-wheeler manufacturer in the world, dominating the passenger carrier and cargo three-wheeler markets in India.
In FY24, Bajaj Auto captured 18.2% of the Indian motorcycle market share, up from 17.3% in FY23, with key offerings such as Bajaj CT, Platina, Pulsar, Dominar, KTM, Husqvarna, and Avenger. The company partnered with Triumph Motorcycles in 2017, developing the Speed 400 and Scrambler 400 in 2023, while expanding Triumph’s distribution network across 56 cities and 16 countries. The electric vehicle segment under the Urbanite brand introduced the Chetak EV in 2020, selling 115,700+ units in FY24, becoming India’s third-largest electric two-wheeler brand. Bajaj Auto holds a 78% market share in ICE three-wheelers, 75.5% in passenger carriers, and 46.5% in the cargo segment. The company exported 1.64 million units in FY24, despite macroeconomic challenges in key markets.
Bajaj Auto operates five manufacturing plants in India with a total installed capacity of 7.1 million units per annum and recently established a new plant in Brazil with an initial capacity of 20,000 units per month. The company has ventured into vehicle financing through Bajaj Auto Credit Ltd. (BACL), expanding operations across multiple states with plans to cover all regions by FY25. Bajaj Auto’s borrowings increased to ₹1,900 Cr in FY24, primarily foreign currency loans for working capital. In March 2024, the company completed a ₹4,000 Cr buyback of 40 lakh equity shares at ₹10,000 per share. Looking ahead, Bajaj Auto plans to launch six new Pulsar models, expand Qute exports to Egypt and Europe, and further strengthen its EV lineup. With a market cap of ₹2,16,432 Cr, a P/E ratio of 28.7, and an ROE of 26.5%, Bajaj Auto remains a dominant player in the Indian and global two-wheeler and three-wheeler markets.
Hero MotoCorp Ltd
Hero MotoCorp, formerly known as Hero Honda, is one of India’s leading two-wheeler manufacturers. Established in 1984 through a collaboration with Honda Japan, the partnership ended in 2011, making Hero MotoCorp an independent entity. The company holds a 48% market share in India’s motorcycle segment and 34% in the overall two-wheeler segment as of FY22.
Hero’s popular brands include Splendor, Passion, Glamour, and Pleasure in the scooter segment. It has expanded into the premium segment with models like Karizma XMR, H-D X440, and MAVRICK 440, contributing ~25% to Q3FY24 revenue. Hero collaborates with Harley-Davidson and holds a 39.7% stake in Ather Energy for EV leadership. The company operates in 43 countries, with 8 manufacturing units and 2 R&D centers in Jaipur and Munich. Hero’s EV charging network is the largest in India, with 1,900+ points across 100+ cities.
Reliance Industries Ltd
Reliance Industries Ltd (RIL) is India’s largest multinational conglomerate, founded by Dhirubhai Ambani in 1973 and currently led by his elder son Mukesh Ambani. The Ambani family holds around 50% shareholding in the company. RIL operates across diverse sectors, including Oil-to-Chemicals (O2C), Retail, Digital Services (Jio), Oil & Gas Exploration, and Media & Entertainment. The O2C segment contributes the highest revenue (~57%), with the world’s largest refinery in Jamnagar having a capacity of 1.4 million barrels per day. The Retail business generates 23% of revenues, operating over 15,200 stores under brands like Reliance Digital, JioMart, and Ajio. Jio, India’s largest telecom operator, serves 41 crore subscribers with a 36% market share. The company is also a key player in gas exploration and owns Network 18 Media, which runs popular platforms like Moneycontrol, Voot, and CNBC TV18. While RIL shows consistent revenue growth, its Return on Equity (ROE) stands at 9% in recent years.
Tata Motors Ltd
Tata Motors Ltd is a leading global automobile manufacturer and part of the Tata Group. It offers a wide range of cars, SUVs, commercial vehicles, electric vehicles, and defence vehicles. The company operates in India, UK, South Korea, South Africa, China, and other countries through subsidiaries like Jaguar Land Rover and Tata Daewoo. It holds the largest market share in India’s commercial vehicle segment (37.7%) and is the third-largest passenger vehicle manufacturer with a strong focus on EVs, holding 53% EV market share in India. Tata Motors is undergoing a demerger to create two separate entities for its commercial and passenger vehicle businesses, expected to complete by October 2025.
Risks of Investing in Top EV Stocks in India
While EV-related stocks present promising growth opportunities, investing in them comes with certain risks that investors must consider. The EV sector is still evolving in India, and various factors can impact the performance and profitability of companies in this space. Below are the key risks associated with investing in the best EV stocks in India:
Regulatory Uncertainty
The EV industry heavily depends on government incentives, tax benefits, and policies that promote electric mobility. However, sudden changes or withdrawal of these policies can negatively affect the growth trajectory of EV companies, impacting their stock performance.
Market Volatility
EV stocks are often subject to high market fluctuations due to evolving consumer preferences, global oil prices, and economic uncertainties. The hype surrounding the EV sector can cause stock prices to rise or fall rapidly, making it a high-risk investment for short-term investors.
Fierce Competition
The EV industry is witnessing intense competition from both established automakers and emerging startups. As more companies enter the market, maintaining a competitive edge becomes challenging, which can pressure profit margins and hinder business growth.
Technological Disruptions
The EV sector thrives on innovation and new technologies like battery efficiency, charging infrastructure, and autonomous driving systems. Companies that fail to keep pace with technological advancements may lose market share, affecting their stock performance.
Investing in India’s best EV stocks can offer lucrative returns, but it comes with inherent risks like regulatory shifts, market volatility, and technological disruptions.
Who Should Consider Investing in Top EV Stocks in India?
Investing in EV stocks in India is not only about financial returns but also about supporting the transition towards a sustainable future. However, this investment may not be suitable for everyone. Understanding the right type of investor profile can help individuals make informed decisions.
Environmentally Conscious Investors
If you’re someone who values sustainability and green energy solutions, investing in EV stocks allows you to align your investments with your beliefs. By supporting companies driving the shift towards eco-friendly transportation, you contribute to reducing carbon emissions while potentially earning long-term profits.
Long-Term Growth Seekers
EV stocks are ideal for investors with a long-term investment horizon. The Indian EV market is still in its early stages, and as the demand for electric vehicles rises, companies in this sector are expected to experience significant growth in the coming years. Patience can lead to substantial returns as the industry matures.
Risk-Tolerant Investors
The EV market can be volatile due to regulatory changes, technological advancements, and market competition. Investors willing to accept higher risks in exchange for potentially high rewards may find EV stocks a suitable addition to their portfolio.
Tech-Savvy Investors
With EV companies constantly working on new technologies like battery innovations, charging infrastructure, and autonomous driving, investors who are passionate about technology and innovation may find this sector particularly exciting.
Investing in EV stocks is not just a financial decision—it’s a step towards supporting the future of clean energy and innovation. Whether you’re a sustainability advocate or a growth-seeking investor, EV stocks offer an opportunity to be part of India’s electric mobility revolution while aiming for long-term wealth creation.
Advantages of Investing in the Best EV Stocks in India
Investing in EV stocks in India offers several benefits, making them an attractive option for both long-term and socially conscious investors. One of the primary advantages is the rapid growth potential of the electric vehicle market, driven by the global shift towards sustainable transportation. As environmental concerns rise and consumers become more aware of climate change, the demand for electric vehicles is expected to surge, creating significant opportunities for investors. The Indian government’s proactive support through subsidies, tax benefits, and incentive schemes like the FAME (Faster Adoption and Manufacture of Electric Vehicles) program further strengthens the EV ecosystem, boosting the profitability of companies in this sector.
Another key benefit is the alignment with sustainability goals, making EV stocks a responsible investment choice. Electric vehicles help reduce carbon emissions and dependence on fossil fuels, contributing to a greener future. This makes EV stocks highly appealing to investors seeking to combine financial gains with positive environmental impact. Additionally, the EV sector is innovation-driven, with constant technological advancements in battery technology, charging infrastructure, and autonomous features. Companies at the forefront of these innovations have the potential to deliver higher returns as they lead the market transformation.
Moreover, investing in EV-related stocks provides diversification benefits as the sector includes not only electric vehicle manufacturers but also battery producers, charging station providers, and software companies. This diversification allows investors to spread their risk across multiple industries within the EV ecosystem. As the Indian EV market continues to expand, investors who enter the sector early can benefit from both capital appreciation and long-term wealth creation, making EV stocks one of the most promising investment avenues in the coming years.