October 25 2021

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The 100-Year-Old Story of EV Disruption
It was 1914.

Henry Ford bought his wife, Clara, a Detroit Electric car rather than one of his own Model
Ts.

That year, Henry Ford confirmed rumours that he was developing a low-cost electric car. It
was to be developed in partnership with none other than Thomas Edison.

The problem that Ford was trying to solve was building a light weight storage battery. This
would operate for long distances without recharging. The need for constant recharging
was the electric car's primary weakness back then.

For want of a reliable battery, the electric car was repeatedly delayed. Edison tried and
failed to develop an alternative to the heavy, bulky lead-acid batteries.

Eventually, the entire project was quietly abandoned.

You see, for any new technology to flourish, it requires support from the whole ecosystem.

Be it the Computers… Smartphones… Internet… Social media… or any other technology.

Without support of the whole ecosystem, no technology can thrive on its own.

Take for instance QR codes.

Electric Vehicles are Where QR Codes were a Decade Back

QR codes are ubiquitous today. Both to access information and to pay for goods and
services. The technology was the brainchild of an engineer at Japanese manufacturer
Denso.

Denso engineer, Hara Masahiro, invented the QR code 25 years back.

Although pathbreaking, the technology did not find acceptance, in the initial decade.
Denso lacked the resources to promote the technology. So, he chose to make the patents
open in the hope that other companies would adopt QR codes.

The strategy worked!

As firms globally adopted the technology, QR codes became an integral part of

communication and fintech ecosystems.

Electric Vehicles: The Ultimate Market Intelligence Report | 2

With the advent of camera equipped smartphones a decade back, QR codes began to
come into their own.

Thus, like the QR codes, mass adoption of electric vehicles needs the development of an
entire ecosystem.

As players in the EV ecosystem invest in R&D and share technology, electric vehicles will
see a massive surge in demand in the coming decades.

The Future is Electric

The electric battery is the prime example of innovation you get when there is support from
the entire ecosystem.

A decade back, a typical electric battery would cost around Rs 3 m.

But over the last 10 years, a lot of research has been done with new battery chemistries
and compositions.

And that has drastically reduced battery prices.

In just 10 years, the battery prices have fallen by 89%, from around US$ 1,300/kWh in
2010 to just around Rs 10,000/kWh today.

Bloomberg NEF research predicts by 2023, this will fall further to US$101/kWh.

Below this price point, electric vehicles would be cheaper to mass produce and sell than
internal combustion vehicles.

That’s the reason why every major auto-maker is dumping internal combustion vehicles

today and going electric. They know the future of the auto industry is electric.

And here we are not talking about the change happening in some distant future.

It’s happening right now.

There is no better way to gauge this change than to see what’s happening in Germany…
home to the leading brands like Audi, BMW, Porsche, Mercedes-Benz, and Volkswagen…

Germany is known as the Mecca of the car industry.

And what happened in Germany in 2021 gives us a clear clue into what’s coming in the near
future.

3 | Electric Vehicles: The Ultimate Market Intelligence Report

Do you know in September 2021 at the Munich Motor Show there were no new petrol
models on display?

Instead, Electric Vehicles dominated at the Munich Motor Show.

Very soon, we could see this same trend all over the world.

Today EVs are Attracting Billions of Dollars

The electric and connected car industry has attracted more than US$100 bn in investment
since the beginning of 2020, according to McKinsey.

That is just the beginning.

According to calculations from the consultancy AlixPartners, carmakers have announced a

total of Rs 24,750 bn of investment into electric and battery technology over the next five
years.

This sum has risen 40% over the past 12 months.

While public transport vehicles (like buses and cabs) and goods carriers may be most
adaptable to the EV ecosystem to begin with, over a period a time, we may see even
mainstream passenger vehicles join them.

Adaptability of Vehicle Types to Electric Mobility

Electric Vehicles: The Ultimate Market Intelligence Report | 4

The Myths of EV Adoption
Electric vehicles have been a massive catalyst for green energy.

Since 2013, the world has been adding more electricity-generating capacity from wind and
solar than from coal, natural gas, and oil combined.

Electric vehicles will reduce the cost of battery storage and help store intermittent sun and
wind power.

In the move toward a cleaner grid, electric vehicles and renewable power create a mutually
beneficial circle of demand.

But there’s another side to this EV equation. There are myths that threaten to derail mass
adoption of EVs.

Myth 1: Electricity shortage could be a hurdle for mass EV adoption

Fact: By 2040, electric cars will draw 1,900 terawatt-hours of electricity, according to BNEF.
That is equivalent to just 10% of all electricity produced in 2020.

Myth 2: Insufficient resources could cause supply glut for EV batteries

Fact: According to BNEF, through 2030, battery packs will require less than 1% of the known
reserves of lithium, nickel, manganese, and copper. They will require 4% of the world’s
cobalt. After 2030, new battery chemistries will probably shift to other source materials,
making packs lighter, smaller, and cheaper.

So How Big is this EV Opportunity?

The United States, China, and Europe are the top three regions where the winds of EV shift
have been blowing over the last decade.

India is on the same path as these economies were on a few years ago. Knowing their
journeys will give a good sense of this opportunity.

5 | Electric Vehicles: The Ultimate Market Intelligence Report

 EV: The Big Opportunity

Source: CNBC, Industry Participants (September 2021)

Also, India’s low EV penetration so far makes the opportunity size much bigger for us. There
is unique late mover advantage that India will benefit from as compared to the early
movers.

Electric Vehicles: The Ultimate Market Intelligence Report | 6

 Segment Wise EV Sales in India in FY20

160,000 16.0%

120,000 12.0%

80,000 8.0%

40,000 4.0%

- 0.0%

Passenger
2 Wheelers

3 Wheelers^

Commercial
Vehicles

vehicles
(buses)
EV Units Penetration (% of ICE sales, RHS)
Source: KPMG
^In addition, there are 10 lakh units of e-rickshaws

With battery prices falling 89%, the pace of transition is likely to be much faster in India than
what was seen in the early adopting countries like the China and Europe.

For two wheelers and three wheelers, with or without subsidies, the total cost of vehicle
ownership – upfront buying cost plus operational cost over the life of the vehicle – is already
at par, or even lower than internal combustion engine vehicles.

For instance, the fuel cost for a diesel vehicle, for covering the same distance, could be 10
times as compared to the fuel cost for an EV.

Here’s how the timelines could look like for mass adoption of EVs in India.

7 | Electric Vehicles: The Ultimate Market Intelligence Report

 Potential Timelines for Mass EV Adoption Based on the Cost Differential

Upfront Cost Expected time for Lifetime Operational

Differential Costs for EV to be at Par with ICE
With Subsidy Without Subsidy

2 Wheelers 1 to 1.5 times Already there Already there

3 Wheelers 0.9 to 1.5 times Already there Already there

4 Wheelers (Personal) 2 to 2.5 times 2025 2030

4 wheelers (Commercial) 3 to 2.5 times 2022 2025

State Run Transport
3 times 2024 2030
Undertakings
Source: KPMG

As the data suggests, the biggest and most immediate opportunity is in 2-wheelers and
3-wheelers.

Two wheelers in India comprise over 80% of the of the auto volumes. They can be charged
from the comfort of home, without having to wait for public charging infrastructure.

In China, with an overall EV penetration of 12%, 80% of the two wheeler fleet is electrified.

From a low base and with a conservative 5% growth, 2-wheelers sales in India could rise
from 18 million units to 29 million units over the next decade.

How to Visualise the Share of 2-Wheeler EVs

Average EV sales in last 2 years has been 1.5 lakh units per annum.

Let’s take at a conservative assumption that just one third of this fleet will be electric by the
next decade. Then, the electric 2-wheeler units could be at 10 million – a 66 x opportunity.

This implies an almost vertical growth of 52% CAGR!

Then there is the cost rationalization along with the government’s FAME incentives. Also,
there are committed deadlines under Paris agreement to bring down pollution below
certain levels.

Electric Vehicles: The Ultimate Market Intelligence Report | 8

Considering these factors along with investments in charging infrastructure, and the shift in
the consumer sentiment, 2-wheelers are the most promising EV segment.

Potential Opportunity in Electric 2-Wheelers

Source: KPMG

Similarly, for three wheelers, the volume sales have been at 11 lakh units (exports included),
of which electric rickshaws average around 1 lakh.

In next three to five years, this could be a 9 to 10 times growth opportunity.

Overall, at 1 crore units, the global EV penetration is just around 1% in 2021.

As per International Energy Agency (IEA), by 2030, EVs could grow 15 times, at 30%
annual rate every year over next decade.

Also, as per global consultancy firm Alix Partners, industrywide EV investments are planned
at Rs 25 trillion.

India is planning an US$ 8 bn investment in the EV space.

This could create a tsunami of wealth creation opportunities in auto space.

9 | Electric Vehicles: The Ultimate Market Intelligence Report

Decoding the Indian EV Ecosystem
There are 5 major areas where an EV ecosystem can support innovation: manufacturing,
component supply, charging infrastructure, financing, as well as e-mobility services.

These categories holistically address how EVs are made, bought, serviced, operated and
become profitable.

In the listed space, the EV ecosystem includes companies like Amara Raja, Exide Batteries,
Minda Industries (sensors and controllers), Minda Corporation (safety, communication
systems, lightweighting), KPIT and Tata Elxsi (software, design and architecture), Fiem
Industries (vehicle lighting), Kabra Extrusiontechnik (battery storage), Hindalco and Nalco
(lightweighting) Himadri Specialty Chemical, HBL Power System (batteries, electronics, and
motors), Tata Power (charging infrastructure), just to name a few.

EV 2W EV 3W EV 4W E-CV

EV Original Equipment Manufacturers

Battery Electric Fleet
Manufacturers Operators
EV Electric Vehicle Electric Mobility
Component Services Electric Buses
Drivechain, Ecosystem
Chassis & Makers & Financers Banks, NBFCs
Other component
makers
EV Charging Infrastructure

EV Software
Power EV Charger EV Charger Battery
Storage Manufacturer Operator Swapping Operator
Source: Equitymaster

The International Energy Agency (IEA) believes that India will be the country with the
greatest need for additional energy flexibility in the coming decades.

Stored electricity is flexible enough to cater to gaps and changes in supply and demand.
Which means all the electricity that is being produced will have to be stored effectively for
later use.

So, electric batteries are to this century what oil was to the previous one.

The International Energy Agency has predicted that India will have a third of global
battery storage capacity by 2040.

Electric Vehicles: The Ultimate Market Intelligence Report | 10

Understandably, all the focus is on the largest battery makers in the country.

Batteries Account for 40% of the EV Cost

Cost Breakup of an EV (%)

40%

40%

3% 10%
7%
Battery Electric Drive
Power Electronics Vehicle Interface Control
Non Power train components

EVs will need better aesthetics, design, and fuel economies. This will imply opportunities
not just for EV component makers, but EV agnostic suppliers as well.

In fact, EV agnostic players could be safer plays as compared to some pure play EV
component suppliers that might be too ahead of the curve for their own good.

Later in the report, we will share which of these could be attractive investment bets with
decent margin of safety.

Why EV Backdoor Stocks Deserve the Most Attention

When we speak of the 15x opportunity in EVs or of the 66x opportunity in electric
2-wheelers, the names that come to mind are Ather Energy (Hero), Hero Electric, Ampere
(Greaves Cotton), TVS, Ola Electric, Bajaj Auto.

These are the visible faces in the EV gold rush. But will they be ones to strike gold?

11 | Electric Vehicles: The Ultimate Market Intelligence Report

Think about it.

Most of these players (barring Ola which is not listed anyway) have been the market leaders
in their respective segments with internal combustion engine based vehicles dominating
the portfolio. EVs contribution is in low single digits.

Incubating EVs is a compulsion. It’s a process of creative destruction they cannot afford to
postpone or ignore. EVs will replace their legacy products.

Even if this tiny part grows 15x, a mere low double digit shrinkage in their legacy products
would make the EV transition an underwhelming proposition.

Thus, the incremental value gained in this transition could be low.

These names will indeed be the front runners in EV revolution, but the ones that will
strike gold are likely to be backdoor plays – the companies in the EV ecosystem.

This is just like those who got rich supplying picks and shovels in the California gold rush.

But again you will need to be very selective in the auto ancillary space, as some of them
might be staring at a shrinking market.

Here’s the thing you need to keep in mind.

There are only around 20 moving parts in fully electric car. This compares to 2,000 parts
in ICE vehicles.

Here’s a snapshot of the big opportunities and traps in the auto ecosystem.

Impact of EV Transition on Different Components

Highly Negative Negative Moderate Positive Highly Positive

Steering
Engine parts Gears Electric Motor Batteries
Systems
Clutch Seats Inverters Wiring harnesses

Radiator Brake Lining Microprocessor

Headlights Controllers

Leaf springs

Shock absorber
Source: BEE Technical Study of EVs and Charging Infrastructure, Industry Report (GIZ, Niti Aayog)
This means, within the EV ecosystem, you need to be highly selective.

Electric Vehicles: The Ultimate Market Intelligence Report | 12

Companies like Shriram Pistons and Rings, or UCAL Fuel systems (that makes carburettors
and Air Suction Valves) could be on the losing side of this race.

On the other hand, there will be section in the ecosystem that will witness huge structural
tailwinds.

In the listed space, the EV ecosystem includes companies like…

• Amara Raja Batteries, Exide Batteries, Minda Industries (sensors and controllers)

• Minda Corporation (safety, communication systems, lightweigting)

• KPIT and Tata Elxsi (software, design and architecture)

• Fiem Industries (vehicle lighting), Kabra Extrusiontechnik (battery storage)

• Hindalco and Nalco (lightweighting) Himadri Specialty Chemical, HBL Power System
(batteries, electronics and motors), Tata Power (charging infrastructure)

Later on in the report, we will share which of these could be attractive investments with
decent margin of safety.

EVs will need better aesthetics, design, and fuel economies too. This implies opportunities
not just for EV component makers, but EV agnostic suppliers as well.

In fact, EV agnostic players could be safer plays compared to some pure play EV component
suppliers that might be too ahead of the curve for their own good.

Urgency in Tapping the 15x EV Upside

EV companies in India are nudging the burgeoning middle-class to bypass the traditional
internal combustion engine.

So, it won’t be surprising to find Indian masses move towards electric mobility.

India is also uniquely positioned to leapfrog to electric mobility due to…

• Low-vehicle penetration

• Widespread shared mobility via smart phones

• Innovative battery technologies

Lithium-ion batteries are critical in the making of battery packs for electric vehicles. They
account for 35-40% of the cost of an electric vehicle. Lithium cells constitute around 70%
per cent of the battery cost.
13 | Electric Vehicles: The Ultimate Market Intelligence Report
The Indian Space Research Organisation (ISRO) has transferred its in-house lithium ion
technology at a nominal fee of Rs 10 m to 10 Indian companies for commercial production.

This move is expected to lead to the establishment of lithium-ion cell production facilities
for indigenous EVs.

Leading global players have shown interest in establishing cell or battery pack manufacturing
facility in India. Major Indian firms have also outlined plans to set up manufacturing facilities.

Rechargeable batteries are the most valuable part of an EV. In fact, it often differentiates
the frontrunners from the rest.

So, most EV companies are rightly focussed on building giga-factories for batteries.

But questions arise on the sustainability and geopolitical consequences of relying on a

single kind of fuel.

EV batteries need consistent and abundant supply of lithium and cobalt. Mining these "rare
earth" elements raise environmental and geopolitical questions.

Though lithium is quite abundant, cobalt is not. The main source of cobalt is the Democratic
Republic of the Congo, where mining conditions are primitive. To add to that they violate
human rights.

If that was not enough, once mined, cobalt is mostly refined in China, which also has the
lion's share of global lithium-ion battery production capacity.

China, in fact, dominates production of rare-earth elements, too. Not surprisingly, almost
40% of the EVs produced in the world today come out of Chinese factories.

Geopolitical tensions have already led to disputes between China and western countries
on supply of computer chips and manufacturing tools.

EV producers in India who are betting big on lithium batteries, need to make way for
alternative fuels too.

Those companies successful in doing so may be able to ride a rather long megatrend.

So, the real wealth in electric vehicles is far from the passenger car manufacturers, for now.

Rather, companies that successfully develop batteries with reliable fuel have a lot of profits
coming their way.

Electric Vehicles: The Ultimate Market Intelligence Report | 14

 Access to Electric Battery Fuel for EVs

Meanwhile, the government has offered strong incentives to switch to electric vehicles.

The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) was
introduced to drive greater adoption of EVs in India.

It was launched with a massive budget outlay of Rs 100 bn in April 2019, to support 7,000
e-buses, 500,000 e-3-wheelers, 55,000 e-passenger vehicles, and a million e-2-wheelers.

However, it seems to have missed its desired outcome by a huge count.

As of June 2021, only 78,045 vehicles had benefited under the scheme.

Incentives under FAME- II Scheme

15 | Electric Vehicles: The Ultimate Market Intelligence Report

The government extended the scheme by another two years to 31 March 2024.

In fact, in a boon for new electric two-wheeler customers, the scheme has increased the
demand incentive by 50% to Rs 15,000 per kWh compared to Rs 10,000 per kWh earlier.

The maximum cap was also increased to 40% of the e-2-wheeler cost compared to 20%
earlier.

The government also approved a PLI scheme (Production-Linked Incentive) which promotes
advanced technologies, chief of which is battery electric technology.

This scheme, offers an incentive of Rs 261 bn, which will be provided over a period of five
years. It focuses specifically on EVs and Hydrogen fuel cell vehicles and their components.

The inclusion of a PLI scheme of this magnitude, combined with existing schemes like
FAME, multiple state subsidies, etc provide a direct incentive for auto firms. The government
expects the PLI scheme to bring in investments of Rs 425 bn.

20 EV Stocks We are Keeping a Watch On…

Here is a list of 20 companies that are on our EV watchlist.

Barring Lumax Industries, Kabra Extrusiontechnik (covered in Hidden Treasure) and Bharat
Electronics, Bharat Forge (covered in StockSelect) , 16 out of the 20 stocks listed here do
not feature in our recommendations yet.

This is because they are yet to filter through all our fundamental and business quality tests.

However, as promised, as soon as we find any of these stocks meeting our recommendation
criteria, we will send you an alert regarding the same.

Meanwhile, familiarise yourself with some of the leading stocks in India’s EV ecosystem.
And do keep a watch on recommendations in both StockSelect and Hidden Treasure to get
the alerts on new EV stock ideas.

Tata Power
Tata Power is India’s largest EV charging infrastructure provider.

The company has already set up 961 charging stations. It has targeted to more than double
this number to 2,000 charging stations by year end and a target of 5x in 5 years.

Apart from charging stations, the company is also looking to provide battery swapping
stations. Tata Power has signed an agreement with HPCL to provide end to end charging

Electric Vehicles: The Ultimate Market Intelligence Report | 16

stations at its petrol pumps.

This makes Tata Power a strong play in the EV eco system. The pedigree of Tata group also
gives comfort from the corporate governance point of view.

Minda Industries
Minda Industries, the UNO Minda group flagship company which makes auto components
such as switches, lighting, and seating.

It’s increasing its focus on transition to electric vehicles. The company is working on new
products like sensors and controllers for the electric power train.

The existing products are protected from transition to EVs. Besides the company is looking
to increase content per vehicle as the share of EVs increase.

The company is actively looking to increase its share from the EV segment by 2025 with
multiple new products.

Lumax Industries
Lumax Industries, the leading manufacturer of automotive lighting is expected to be a
beneficiary from the transition to EVs.

The company is a market leader with a 50% plus market share in the passenger vehicle
segment in front and back lighting and has a 30% market share in the 2-wheeler market.

The transition to EVs is likely to lead to shift towards LEDs which will increase realisations
and margins going forward.

Besides, Lumax falls in the category of auto companies which are not only unaffected by
the EV transition but will aid in terms of higher content and realisations.

The latest update and view on the stock is available here.

Bharat Electronics
Bharat Electronics, a Navratna PSU, manufactures advanced electronic products for ground
and aerospace applications.

The company has signed a MOU with Triton Electric Vehicle for developing EVs and energy
storage systems. BEL will be the exclusive manufacturing partner to Triton in India for
identified products. Triton will provide the know-how and technical support.

17 | Electric Vehicles: The Ultimate Market Intelligence Report

Also, the opportunity in the energy storage space is huge with BEL being the prime
contractor under the Make in India scheme.

A strong balance sheet along with superior technical know-how makes BEL a good bet to
play the EV eco system.

Greaves Cotton
Greaves Cotton an engineering company which makes engines for heavy vehicles is
looking to transform itself in to a green energy entity focused on electric vehicles.

With 3 acquisitions in the EV space – Ampere scooters, ELE Rickshaws, and MLR autos, the
company is looking to position itself as a pure EV player.

It has lined up a capex of Rs 7 bn over the next 10 years in that regard. The plant is likely to
have a capacity of 1 million units annually.

With a strong workforce of 7,000 retailers and 12,000 mechanics who are being reskilled in
EV technology, Greaves Cotton is setting up a strong infrastructure and supply chain.

JBM Auto
Bus manufacturer JBM Auto has an EV vertical which has rolled out JBM EV buses.

It has launched the first Make in India electric bus in 2016. The company’s focus is to be a
one stop solution provider for electric vehicle segment by providing a complete ecosystem
for e-mobility i.e. electric buses, charging infrastructure, and battery technology.

The company has already incurred a capex of Rs 2-2.5 bn over the past 2 years and is
looking to incur Rs 2.5 bn for capacity expansion, technology development, charging
technology, and battery technology.

Himadri Chemicals
Himadri Chemicals is a multi-chemical manufacturer with focus on coal tar pitch and carbon
black.

The company has developed both natural and synthetic varieties of anode material for Li-
ion Batteries. Li-ion batteries are used in cell phones, EVs, and energy storage systems.

Gabriel India
Gabriel India is one of the leading auto component suppliers of shock absorbers and
suspension products.

Electric Vehicles: The Ultimate Market Intelligence Report | 18

It’s the preferred supplier to majority of 2-wheeler and 3-wheeler OEMs. The company has
a 25% market share in the 2-wheeler and passenger vehicle segments. It’s well poised to
capitalise on the EV opportunity.

EV players like Ampere, Mahindra Electric, OLA electric, Ather are among its key customers
in the EV space. This makes it a strong play in the EV segment.

Besides its current product portfolio is EV agnostic making it immune to any unexpected
shocks.

HBL Power Systems

HBL Power first produced and successfully developed aircraft batteries, which led to the
company offering the world's widest range of specialised batteries.

Their knowledge of batteries generated opportunities and ideas for diversification. The
company expanded into new businesses and markets that relied upon its batteries.

HBL Power can synergise on its strengths in battery, electronics, and motors in the EV
space.

Exide Industries
Exide is India's leading storage battery manufacturer. It dominates practically every category
in the automotive, industrial, and submarine industries.

Currently, the automotive industry generates 73% of the segment's revenue, followed by
industrial (26%), and submarine (3%).

With the transition to EVs, the company plans to set up set up the first lithium ion battery
cell manufacturing facility in India.

This is in addition to the plant to be set up in Gujarat in collaboration with Leclanche. The
estimated capex to be incurred is Rs 2.3 bn.

Bharat Forge
Bharat Forge is a leading forging manufacturing company in the automobiles, oil and gas,
aviation sectors. It makes forgings and casting products.

To adapt to the EV transition opportunity, Bharat Forge has set up a new company Kalyani
Powertrain. The newly formed company will look at organic and inorganic opportunities in
the EV space.

19 | Electric Vehicles: The Ultimate Market Intelligence Report

Bharat Forge also has entered the electric 2-wheeler space with investment in Tork Motors,
which produces and sells electric motorcycles.

Bharat Forge with its investment in Tork Motors and setting up a new company for EV
product development could increase its EV plans going ahead.

Bosch
Bosch, a leading manufacturer of powertrain systems is preparing itself for transition to EVs,
especially 2 wheeler EVs.

With majority of its products likely to be affected due to the transition to EV, the company is
developing products in the EV segment.

It has several offerings ranging from electric machines, inverters, DC convertors along with
vehicle control units and battery management systems for the passenger and commercial
vehicle segments.

Bosch India has support from its global parent which has invested huge sums in the R&D
and has developed products for EVs.

Bosch supplies to almost every auto maker in India and is a trusted supplier for EVs in the
future with its range of products. Besides, it’s also likely to play a key role in the charging
space, with DC chargers.

HEG and Graphite India

Graphite is the largest component in a lithium Ion battery.

With its weightage being little less than 50% of battery minerals in the lithium ion battery,
graphite becomes a very important element in a battery.

Companies like HEG and Graphite India are the country’s leading graphite manufacturers.
As Indian auto firms start making Lithium Ion batteries locally, the requirement of graphite
is expected to shoot up.

This will, in turn, benefit HEG and Graphite.

Ramkrishna Forgings
Ramkrishna Forgings one of the leading suppliers of rolled forged and machined products
has entered the EV segment by winning an order from a foreign based Tier 1 OEM in India.

Electric Vehicles: The Ultimate Market Intelligence Report | 20

Besides the order, the company has also signed an agreement with a US based technology
partner for the development of electric vehicle power train components for the Indian EV
market.

The technology partner is a leading expert in magnetic engineering innovations. Their

expertise lies in efficiency enhancement which bestows a superior hallmark over its peers
in the various industries they operate in.

These developments strengthen the company’s capabilities in the EV space. This could
lead to increased share of EV revenues in the future.

Sona Comstar
Sona Comstar is a leading auto component manufacturer supplying power train products. It
is one of the few Indian companies whose current product portfolio has a 20% contribution
from EVs. It is a supplier to marquee names across the globe. EV contribution from the
current order book is at 57% which is expected to be fulfilled over the next 8-10 years.

Sona Comstar is a global EV play with strong balance sheet and operational profile (
ROCE>30%).

Olectra Greentech
Olectra Greentech is a leading manufacturer of electric buses and insulators in India. The
company is backed by one of the largest EV manufacturers in the world i.e. BYD. Over the
past 1 year the company has received many order from the state transport undertakings of
various states in India, making it one of the preferred supplier of buses.

As State transport undertakings procure new buses, the share of inter city buses is likely to
be skewed towards electric buses. Olectra Greentech is likely to be the biggest beneficiary
of this shift.

Endurance Technologies
Endurance Technologies is a leading supplier of 2 wheeler and 3 wheeler auto components.
The company currently supplies casting parts to majority of OEMs and is engaged with
major EV players to supply castings and ABS to electric 2 wheelers.

The adoption of EVs especially in the 2W space is likely to open up opportunities as the
company is a preferred suppliers of most of the 2W OEMs

21 | Electric Vehicles: The Ultimate Market Intelligence Report

Kabra Extrusiontechnik
Kabra Extrusiontechnik has been the country’s largest manufacturer of plastic extrusion
machinery for more than 4 decades and has recently ventured into manufacturing of
lithium-ion battery packs.

Kabra Extrusiontechnik’s battery division Batrixx manufactures battery packs for 2 wheeler
EVs. Battrixx is positioned to provide wide range of advanced lithium-ion battery packs with
smart Battery Management System (BMS) to power the growth of India’s transition to green
energy storage and electric transportation.

Batrixx has received its single largest order of 8000 battery packs to be supplied to Joy E
bikes.

The latest update and view on the stock is available here.

Motherson Sumi
One of India’s largest wiring harness manufacturer, Motherson Sumi, is well-poised to
benefit from the increase in electronics content per vehicle in passenger vehicles and the
shift towards electric vehicles globally. In virtually all applications of an electric vehicle,
such as the EV battery, transmission, lights, braking, air conditioners and various dashboard
applications like speedometer, fuel meter, etc., wiring harness serves a major function. With
a capex of Rs 20 bn in financial year 2021-22, Motherson Sumi is prepared to scale up its
EV offerings. The company has a vision of tripling revenues by FY25 to US$ 36 bn from
US$10 billion clocked in financial year 2019-20 under the Vision 2025 plan.

Electric Vehicles: The Ultimate Market Intelligence Report | 22

Coverpage image source: MicroStockHub / www.shutterstock.com

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