DR. B. R.

AMBEDKAR UNIVERSITY OF DELHI

SCHOOL OF BUSINESS, PUBLIC POLICY AND SOCIAL
ENTREPRENEURSHIP
SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
(Semester-3)
WITH THE GUIDANCE OF KAJAL MITTAL MA'AM

| ABHILEKH JHA | AKHILESH | AMAN RAJ GUPTA |

YATIKA |(GROUP-1)
 EIC ANALYSIS-EV INDUSTRY

Electric Vehicles (EVs) have emerged as a promising and transformative technology in India's
automotive landscape. In recent years, the Indian EV sector has witnessed significant
momentum, driven by a combination of environmental concerns, government initiatives, and
advancements in technology. This dynamic sector is poised for substantial growth and has the
potential to reshape the country's transportation ecosystem.

The scope and growth of the EV sector in India are remarkable. As the world's second-most
populous nation and one of the fastest-growing economies, India faces unique challenges
related to urbanization, pollution, and energy sustainability. In response to these challenges, the
Indian government has rolled out a comprehensive set of policies and incentives to promote EV
adoption.

These policies include subsidies for EV buyers, reduced Goods and Services Tax (GST) rates,
and ambitious plans to establish a widespread EV charging infrastructure. Moreover, initiatives
like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme
aim to stimulate the growth of the EV industry.
As a result of these measures and growing awareness about environmental conservation, the EV
sector in India has witnessed a surge in interest and investment. Both domestic and international
automakers have started introducing a range of electric vehicles, from compact city cars to
electric SUVs. Moreover, startups in the EV space are innovating in areas such as battery
technology, charging solutions, and electric mobility services.

The EV sector in India is on an upward trajectory, driven by government support, increasing

consumer demand, and a commitment to sustainable transportation. This sector not only offers
cleaner and more energy-efficient mobility solutions but also presents significant economic and
environmental benefits. As India continues its journey toward electrification, the growth
potential for the EV sector remains vast, promising a cleaner, greener, and more sustainable
future for transportation in the country.

Porter's Five Forces analysis is a framework developed by Michael Porter to assess the
competitive forces within an industry.

● Threat of New Entrants:

- Low to Medium: The EV industry has high barriers to entry due to significant capital
requirements for research and development, manufacturing facilities, and distribution
networks. Established players like Tesla, Volkswagen, and Toyota have a strong foothold.
 However, the increasing focus on sustainability and government incentives may attract
new entrants, especially startups and technology companies.

● Bargaining Power of Suppliers:

- Low: Suppliers of essential components, such as lithium-ion batteries, electric motors,

and semiconductors, hold some bargaining power. However, as the EV industry grows,
suppliers are also expanding their capacity to meet demand. Additionally, many
automakers are investing in vertical integration or forming strategic partnerships to
secure their supply chains.

● Bargaining Power of Buyers:

- Medium: Buyers have some bargaining power because they can choose from multiple EV
manufacturers and models. However, the availability of government incentives, range of
features, and charging infrastructure can influence their choices. As the industry evolves,
consumers may gain more power, particularly if competition intensifies.

● Threat of Substitute Products:

- Low: Currently, there are few substitutes for electric vehicles in terms of eco-friendliness
and energy efficiency. Traditional internal combustion engine (ICE) vehicles are the main
substitute, but they are facing increasing regulatory pressure to reduce emissions.
Hydrogen fuel cell vehicles are another potential substitute, but they face infrastructure
challenges and are less common.

● Competitive Rivalry:

- High: The competitive rivalry within the EV industry is intense. Established automakers
and newcomers are continuously innovating to gain market share. This competition leads
to rapid advancements in technology, pricing pressures, and marketing efforts to
differentiate brands. Companies like Tesla, which have a strong focus on innovation and
branding, set a high standard for the industry.

Additionally, there are some industry-specific factors to consider in the EV sector:

● Regulatory Influence: Government policies, including emission regulations, tax

incentives, and infrastructure investments (charging stations), have a substantial impact
on the EV industry's growth and profitability. These policies can both drive demand and
shape the competitive landscape.
 ● Technological Advancements: Rapid advancements in battery technology, autonomous
driving features, and connectivity are critical factors influencing competition and
consumer preferences within the EV industry.

● Global Expansion: Many EV manufacturers are looking to expand their presence

globally, leading to international competition and varying market conditions in different
regions.

In summary, the electric vehicle industry is highly competitive and influenced by various
factors, including technological advancements, government regulations, and consumer
preferences. While established players have a head start, the industry's growth potential
continues to attract new entrants and innovations, making it a dynamic and evolving sector.

A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of the electric vehicle (EV)
sector in India can provide insights
into its current state and future
prospects:

● Strengths:

- Government Support: India

has a strong commitment to
promoting EVs, with various
incentives and policies such as the
Faster Adoption and
Manufacturing of Hybrid and
Electric Vehicles (FAME) scheme,
GST reduction, and subsidies for
EV buyers.

- Growing Demand:
Increasing environmental
awareness, rising fuel prices, and a
desire for cleaner transportation
options are driving demand for EVs in India.

- Low Operational Costs: EVs have lower operating costs compared to traditional gasoline
vehicles due to lower fuel and maintenance expenses.
- Domestic Manufacturing Potential: India has a robust manufacturing sector, which can be
leveraged to produce EV components and vehicles domestically.

- Economic Growth: The EV sector can contribute to job creation and economic growth,
aligning with India's Make in India and Skill India initiatives.

● Weaknesses:

- Infrastructure Challenges: Limited charging infrastructure, especially in rural areas,

remains a significant hurdle to EV adoption.

- High Initial Costs: EVs are relatively expensive compared to conventional vehicles,
mainly due to the cost of batteries. This can deter price-sensitive consumers.

- Range Anxiety: Concerns about the limited driving range of EVs, especially in a vast
country like India, can affect consumer confidence.

- Supply Chain Constraints: Dependency on lithium-ion batteries, which are mostly

imported, can pose supply chain vulnerabilities.

- Consumer Awareness: Many consumers in India are not fully aware of the benefits of
EVs or have misconceptions about their performance and costs.

● Opportunities:

- Infrastructure Expansion: The development of a robust charging network, both in urban

and rural areas, presents a significant growth opportunity.

- Local Battery Production: India can focus on localizing battery manufacturing to reduce
costs and decrease reliance on imports.

- Government Initiatives: Continued government incentives and policies can further boost
EV adoption and manufacturing.

- Urban Mobility Solutions: EVs can be integrated into urban mobility solutions, including
ride-sharing and electric public transportation.

- Export Potential: India can tap into the global market for EV components and vehicles,
leveraging its manufacturing capabilities.
 ● Threats:

- Global Competition: International EV manufacturers may enter the Indian market,

intensifying competition for domestic companies.

- Charging Infrastructure Delays: Delays in expanding the charging infrastructure could

slow down EV adoption.

- Technological Advancements: Rapid advancements in EV technology could make

existing models obsolete, requiring continuous investment in research and development.

- Battery Supply Chain Risks: Dependence on global battery supply chains exposes the
sector to geopolitical and supply chain disruptions.

- Policy Changes: Unpredictable changes in government policies or incentives could

impact the industry's growth trajectory.

The EV sector in India is poised for growth, driven by government support, increasing
consumer interest, and environmental concerns. However, challenges related to infrastructure,
cost, and consumer awareness need to be addressed. The sector's success will depend on the
ability to overcome weaknesses and threats while capitalizing on strengths and opportunities.

EIC analysis is a strategic framework used by

businesses and analysts to assess and analyze the
Economic, Industry, and Company factors that can
impact a particular business or investment decision.
Each component of the EIC analysis provides a
different perspective on the external and internal
factors that can influence the success or performance
of a company or investment. Here's a brief overview
of each component:

● Economic Factors (E): Economic factors refer to the broader economic conditions and
trends that can affect a company or industry. This includes aspects such as GDP growth,
inflation rates, interest rates, exchange rates, and overall economic stability.
Analysts and businesses examine economic factors to understand the macroeconomic
environment in which they operate. Economic conditions can impact consumer spending,
demand for products and services, and the cost of financing, among other things.

● Industry Factors (I): Industry factors pertain to the specific characteristics and
dynamics of the industry in which a company operates. This analysis involves assessing
the competitive landscape, market trends, regulatory environment, and other industry-
specific variables.
Understanding industry factors is crucial for evaluating the attractiveness of a particular sector
and identifying potential opportunities and threats within that industry.

● Company Factors (C): Company factors focus on the internal aspects of the specific
company being analyzed. This includes evaluating the company's financial health,
operational efficiency, management team, competitive positioning, and overall business
strategy.
Company factors help assess a company's strengths and weaknesses, its ability to compete in the
industry, and its potential for growth and profitability.
EIC analysis is often used as part of a broader strategic planning and decision-making process.
By considering economic, industry, and company factors together, businesses and investors can
make more informed decisions about investments, market entry, expansion strategies, and risk
management. It provides a holistic view of the factors that can impact the success or failure of a
particular business endeavour.

Economic
In 2019, global transport emissions increased by less than 0.5% (compared with an annual
average of 1.9% since 2000). This is owing to efficiency improvements, electrification and
greater use of biofuels. Nonetheless, the transportation sector is still responsible for nearly 24%
of direct CO2 emissions from fuel combustion. In this context, it is necessary to accelerate the
electrification of the vehicle fleet to cut the carbon emissions from road traffic in our efforts to
achieve the target of carbon emission reduction agreed upon in the Paris Climate Accords. China
is one of the most enthusiastic and energetic countries worldwide to promote the deployment of
electric vehicles (EVs) by employing all kinds of incentive policies. According to the report
titled “Global EV Outlook 2020 released by the International Energy Agency, the stock of EVs
in China has climbed to 3.3 million by 2019, ranking first all over the world. In addition, the EV
population in China is projected to reach 80 million by 2030.

The massive deployment of EVs to replace gasoline vehicles can create a green and sustainable
way for human beings, especially when the penetration of renewable energy sources in the power
system remains growing. Nonetheless, uncoordinated charging of large-scale EVs would pose a
huge challenge to the existing electrical power system. When EVs only serve as a type of electric
load, the enormous power demand arising from EV charging would cause serious issues in the
performance of the power system and result in power failure. On the other hand, EVs can
function as virtual power plants (VPPs) to feedback on the stored energy to the grids for peak
demand shaving. This concept is also termed the vehicle-to-grid (V2G) technology. It has been
demonstrated that optimal V2G utilization can smooth out the fluctuation of the distribution
system by minimizing the variance of the load curve. Hence, it is expected that the V2G
operation can contribute to a stable, secure and cost-efficient power grid in the future.

Theoretically speaking, a large number of EVs with huge storage capacities can provide spinning
reserve, frequency regulation and other ancillary services for the electric grid to earn a reward in
electricity markets. However, in the practical application, a single EV does not qualify for
participation in the power market transaction pattern. Herein, a novel load-serving entity, the EV
aggregator, is introduced to be responsible for a large scale of EVs to explore business
opportunities. In the framework of the electricity market, the EV aggregator should bid the
energy in day-ahead markets and manipulate the charging/discharging of EVs in real time to
make profits. From the EV aggregators’ perspective, they desire to purchase cheap electricity to
store them in EV batteries and feed them to power grids at a high price. Moreover, they also can
utilize the grid-connected EVs to provide ancillary services for grids to be rewarded.

Even though EV aggregators can utilize EVs to gain a lot of benefits, a critical issue that they
must take into account is the EV battery degradation caused by the bidirectional V2G operation.
When EV aggregators employ EVs to feed the energy deposited in the onboard battery to grids at
rush hours or offer regulation-up services, the discharging operation of EVs is indispensable. In
this situation, it will lead to the extra charging/discharging cycles for the EV battery pack,
thereby reducing the battery lifetime to some extent. Moreover, battery degradation is a
dramatically complex process, relying on a series of factors including the EV
charging/discharging rate, ambient temperature, depth of discharge, and battery state of charge
(SoC). Accordingly, it is rather difficult to accurately weigh the battery degradation costs in the
V2G operation, thus resulting in a headache problem for the economic evaluation of EV
aggregators participating in electricity markets.

In the economic assessment process, it is essential to calculate the optimal V2G strategy
according to the time of use (ToU) price. Most recently, increasing attention has been paid to
restraining the battery SoC and the charging power of EVs as an effort to largely reduce battery
degradation, such as in. However, the battery degradation costs resulting from the extra
charging/discharging process of EVs are not specified in the objective function. In this sense, it is
inconvenient to conduct the cost-benefit analysis for EV aggregators to participate in electricity
markets. As a result, it is a compelling idea to quantitatively estimate the battery degradation
costs of EVs when providing V2G services in markets. In addition, without the assessments of
battery degradation costs, it would become hard to design a sound incentive mechanism to
compensate EV users for the contribution of their vehicles to provide V2G services.

Currently speaking, a handful of research efforts focus on the battery wear of EVs in the market
participation model of EV aggregators to make the optimal V2G strategy. Early on, a distributed
charging approach was developed to coordinate the charging of EVs while considering the
accumulated battery degradation costs. In the proposed model, the individual EVs would update
their charging behaviours concerning the electricity price. However, the proposed method didn't
involve the V2G operation for the provision of grid services. After that, quantified the EV
battery degradation from driving only vs. driving and several V2G services based on the lithium-
ion battery capacity fade model. Results revealed that offering grid services indeed increased the
battery wear over the lifetime of vehicles; however, the incurred battery loss from V2G was
inconsequential in contrast to naturally occurring battery wear (i.e. from driving and calendar
ageing). In addition, suggested that the revenues that EV aggregators can gain in electricity
markets may be insufficient to cover the additional battery degradation costs under the current
market, the regulatory conditions and the given assumptions. However, the developed V2G
operation may not be optimal since the authors didn't develop an optimization model to obtain
the V2G strategy for EV aggregators participating in markets. Next, a CVaR (conditional value-
at-risk) constrained bidding model is developed under market uncertainties from the EV
aggregator's view. In the proposed model, the battery degradation costs of EVs are described by
the linear function of the discharging power of EVs. The problem is that it is not exact to adopt
such a function to calculate the battery degradation costs caused by providing V2G services.

Various bodies of studies have been reported on the cost-benefit analysis for EV aggregators to
employ EVs to conduct the V2G operation. In this, the optimal coordination strategy of EVs
within the V2G operation is investigated for the cost-benefit analysis. In the optimization model,
the battery degradation cost model is formulated by considering the depth of discharge at each
time slot. Results reveal that the V2G operation is profitable for EV users with a high penetration
of renewable energy sources. An empirical battery model is developed as an effort to assess the
profits when using EVs to offer ancillary services in electricity markets. Results signify that
offering both peak demand shaving and frequency containment reserve services would be the
most profitable. Moreover, a mixed integer linear model is formulated to minimize EV charging
costs and battery ageing costs to investigate the economic potential when using EVs as storage
devices. Results show that using EV batteries as storage in the V2G system seems not profitable
under former battery prices, battery degradation and energy prices. In addition, in the technical
feasibility and economy concerning the usage of repurposed electric vehicle batteries are
overviewed for power peak shaving. An optimization model is presented to analyze the potential
regulatory capacity and economic benefits of V2G based on the various demands and charge
prices. Results indicate that V2G can significantly mitigate the load pressure of power grids and
save charge costs for EV users.

To our knowledge, the majority of existing research efforts focus on the theoretical analysis
regarding the impact of V2G operation on battery degradation costs to determine the economic
viability of EVs providing V2G services. In addition, the revenue calculation of EVs providing
V2G services is not based on a real-world case study. At present, the fair and competitive
electricity market environment provides an opportunity to calculate the revenues of EVs
providing grid services. However, little attention is paid to the economic assessment of EV
aggregators participating in the real-world electricity market when employing EVs to offer V2G
services. In addition, data show that battery prices have fallen 88% over the last decade [32]. It is
believed that cheaper batteries create more potential for EVs to provide V2G services for power
grids. As such, it is necessary to reassess the economy of EV aggregators in the current market
framework for the ever-decreasing battery costs.

With the possibility of 100% FDI, new manufacturing centres, and intensified efforts to improve
charging infrastructure, the electric car industry in India is gaining momentum. Other growth
factors for the Indian EV market include federal subsidies, a regulation that favours higher
discounts for electric two-wheelers built in India, and an increase in localised ACC battery
storage production.

Industry

Electric vehicle industry in India: Growth targets

● By 2030, the Indian automobile market is anticipated to rank third in terms of volume.
Reliance on the traditional forms of fuel-intensive mobility will not be viable given the
size of the domestic market. Federal authorities are creating a mobility alternative that is
"Shared, Connected, and Electric" to address this, and they have set an ambitious goal of
attaining 100% electrification by 2030.
● India has a lot to gain by switching to electric vehicles (EVs), including access to
qualified labour in the manufacturing and technology industries and a relative abundance
of renewable energy supplies.
● If India continues to make steady progress toward achieving its ambitious 2030 objective,
the EV market in India will provide a US$206 billion potential by 2030, according to an
independent assessment by the CEEW Centre for Energy Finance (CEEW-CEF). This
would require an overall investment in vehicle manufacturing and charging infrastructure
of approximately US$180 billion. The Indian EV market got $6 billion in investment in
2021 and is progressively growing in appeal to investors in venture capital and private
equity.
● According to a different report by the India Energy Storage Alliance (IESA), the Indian
EV market will expand at a CAGR of 36% until 2026. The market for EV batteries is also
anticipated to expand at a CAGR of 30% over the same time frame. In the meanwhile, the
IESA analysis projects that the Indian EV market will expand at a CAGR of 49 per cent
from 2022 to 2030 under a "business as usual" scenario. According to a report byIVCA-
EY-Induslaw, the EV industry would generate 50 million indirect jobs in addition to 10
million direct jobs by 2030. Niti Aayog anticipates that by 2030, the substantial EV
financing industry in India will be valued at US $50 billion.
 ● Over the previous three years, EV sales have increased by more than 2,218 per cent; in
FY 2023 (until December 9), over 4,42,901 electric cars have been sold, compared to
19,100 in FY 2020.
● A major change in the global automotive sector is currently taking place as it attempts to
transition to alternative, less energy-intensive choices. India is making investments in this
transition to electric mobility.

● Key drivers of India's policies to accelerate the transition to e-mobility on the one hand
and increasing consumer demand on the other are the burden of oil imports, rising
pollution, the Russia-Ukraine war escalating price inflation, as well as international
commitments to combat global climate change.

Launch of ‘e-AMRIT’ portal: One-stop platform for information on electric vehicles

At the COP26 Summit in Glasgow, India launched the website e-AMRIT, which will serve as a
one-stop resource for all information on electric cars. The website address is https://www.e-
amrit.niti.gov.in/. It discusses important issues with the adoption of EVs and their purchase,
including the locations of charging stations and EV financing choices, as well as details on
investment opportunities, governmental regulations, and manufacturer and driver incentives.
Production-linked incentive schemes:
● A product-linked Incentive Scheme (PLI) for ACC Battery Storage Manufacturing was
introduced by the government in May 2021. This program will encourage local
manufacture of these batteries and reduce dependence on imports. This will considerably
lower the cost of EVs and provide the necessary infrastructure to support the EV sector.

● The government established a PLI Scheme for the auto and drone industries on
September 15, 2021, to encourage high-end, innovative automotive technology vehicles
and products, such as "green automotive manufacturing."

● Existing auto companies as well as new investors who aren't currently involved in the
vehicle or auto component manufacturing business are welcome to participate in the PLI
Scheme for the automotive industry.

The plan consists of two parts:

i) The Champion OEM Incentive Program is a "sales value linked" program that applies to all
segments of battery electric and hydrogen fuel cell vehicles.

ii) Component Champion Incentive Scheme: This "sales value linked" program applies to
vehicles with advanced automotive technology components, completely knocked-down (CKD)
or semi-knocked-down (SKD) kits, and vehicle aggregates made up of 2-wheelers, 3-wheelers,
passenger vehicles, commercial vehicles, and tractors, among other types of vehicles.
India’s EV sales witnessed over 2000% surge from 2019 to 2022

● Sales of EVs have increased over the last three years by more than 2,218 per cent; as of
December 9, FY 2023, over 4,42,901 electric cars have been sold, up from 19,100 in FY
2020.

● Additionally, as of December 9, about 64 original equipment manufacturers (OEMs) of

EVs had registered, and as part of FAME India Phase II, 7,47,000 EVs had been sold.
Around 8,00,000 of these EVs have two wheels and are used for personal mobility, with
more than half of them being three-wheelers for commercial use. There are currently
5,151 EV charging stations operational in India.
Emerging market players:

● These incentives have inspired many top battery manufacturers, notably Amara Raja
Batteries, to focus additional investments on green technologies, including lithium-ion
batteries.
● In April 2022, a European renewable energy firm, Eren Groupe, purchased one of the
most energy-dense batteries in the world, Pravaig's 54MWh battery, for its storage
applications. Pravaig is a Bengaluru-based battery startup. High-density batteries provide
more power per atom than alternatives like sodium-ion or aluminium air, which makes
them more cost-effective. A battery may be fully charged in just 30 minutes, according to
the battery's creators. Given that batteries often account for 35–40% of the entire cost,
this recent acquisition by a European company would not only promote domestic
manufacturing but also pave the road for more affordable EVs.
● Many top industry companies, like OLA Electric Mobility Pvt, Ather Energy, and
Mahindra Electrics, are rapidly expanding their market presence in response to the
opportunity that India's EV industry offers. In addition, governments like Karnataka and
Tamil Nadu are implementing timely, innovative investor-friendly policies in addition to
developing the required infrastructure.
● Tesla Inc., an American manufacturer of electric vehicles and sustainable energy, has
announced the incorporation of Tesla India Motors and Energy Pvt Ltd in Bengaluru to
signify the company's debut in the Indian market.
● Ather Energy, the nation's first intelligent electric vehicle (EV) manufacturer, relocated
its $86.5 million manufacturing from Bengaluru, Karnataka, to Hosur, Tamil Nadu, in
February 2021. There are reportedly 0.11 million two-wheelers that can be produced
annually at the Ather Energy facility.
● The world's largest electric scooter plant will be built in Hosur (about two and a half
hours from Bengaluru) over the next 12 weeks for US$330 million, with a target
production rate of 2 million units per year, Ola Electric, the subsidiary of the unicorn
Indian ride-hailing start-up, also announced in March 2021. By 2022, Ola Electric hopes
to increase production to produce 10 million vehicles yearly, or 15% of all e-scooters in
use today.
Key market players by segment – Sep-Oct 2022 data:

Top Market Players in India’s EV 2-Wheeler Segment – October 2022 Sales

Company name Units sold

Ola Electric 16,178

Okinawa Au 14,924

Ampere Vehicles 10,053

Hero Electric 8,861

Ather Energy 7,306

Top Market Players in India’s EV 3-Wheeler Segment – October 2022 Sales

Company name Units sold

YC Electric Vehicle (YATRI) 3151

Mahindra Electric 2953

Saera Electric Auto Pvt Ltd (MAYURI) 1904

Dilli Electric Auto Pvt Ltd (CITY LIFE) 1521

Champion Poly Plast 1295

Top players in India’s car market: Tata Motors, MG Motor India, Hyundai motors Ltd,
and BYD India.

India’s Electric Car Sales – April to September 2022 (H1 FY 2022-23)

Electric car April May June July August September Tota

manufacturer l

Tata Motors 1812 2495 2724 289 2765 2831 15,5

1 18

MG Motor 245 247 235 268 316 280 159

India 1

Hyundai 23 27 51 61 73 74 309
Motor India

BYD India 21 42 49 44 45 63 264

Mahindra & 13 9 19 26 17 112 196

Mahindra

BMW India 17 9 5 5 25 27 88

Audi 8 8 14 8 14 10 62

Porsche 4 5 4 7 7 13 40

Mercedes-Ben 11 5 3 2 4 7 32
z
Jaguar Land 3 7 1 11
Rover India

Others 4 1 7 17 1 1 31

Total 2161 2855 3111 332 3267 3419 18,1

9 42

Source: Autocarpro.in

Company

A comprehensive company analysis of an electric vehicle (EV) manufacturer reveals a

powerhouse in the rapidly evolving automotive industry. This company has navigated the
shifting tides of consumer preferences and environmental consciousness, firmly establishing
itself as a frontrunner in the global
EV market. With a mission deeply
rooted in sustainability and clean
mobility, this company has become
synonymous with cutting-edge EV
technology and innovation.
Founded in the early 21st century.
From its inception, the company's
mission has been clear: to
accelerate the world's transition to
sustainable energy. With a visionary
leader at the helm, the company set
out to redefine not only how
vehicles are powered but also how
they are designed, manufactured,
and integrated into society.

● Product Portfolio and

Innovation: At the heart of this
 company's success lies its extraordinary product portfolio. From its initial foray into
electric vehicles with a groundbreaking sports car, it has diversified and expanded its
offerings to encompass a range of models. These include compact urban EVs, mid-sized
sedans, and luxurious electric SUVs. Each vehicle is a testament to the company's
relentless pursuit of excellence in design, performance, and efficiency. Innovation is
ingrained in the company's DNA. Its electric vehicles are equipped with cutting-edge
technology, including advanced battery systems, regenerative braking, and sophisticated
driver-assistance features. Furthermore, the company continuously pushes the boundaries
of what's possible with electric vehicles, with ambitions that extend beyond the road. It
has ventured into energy storage solutions, solar energy, and sustainable transportation
ecosystems, further cementing its status as a leader in the energy revolution.
● Global Presence and Production: With an unwavering commitment to a sustainable
future, the company has expanded its global footprint. It operates manufacturing facilities
on multiple continents, meeting the demand for its EVs across international markets. Its
distribution and service network spans the globe, ensuring seamless ownership
experiences for customers.
● Sustainability and Environmental Responsibility: The company's dedication to
environmental responsibility is not just a corporate ethos; it's a guiding principle. It
extends far beyond manufacturing to encompass all facets of its operations. Solar-
powered charging stations, green supply chains, and energy-efficient production
processes are just a few examples of its sustainable initiatives. One of the most
significant contributions to sustainability is the company's emphasis on zero-emission
transportation. Its electric vehicles produce no tailpipe emissions, reducing air pollution
and combating climate change. Moreover, the company has committed to carbon
neutrality by a specific target year, acknowledging the importance of leading by example
in a world seeking a path to decarbonization.
● Charging Infrastructure and Range: Recognizing the importance of a robust charging
infrastructure, the company has invested heavily in expanding the EV charging network.
Charging stations, strategically placed along highways and in urban centres, ensure that
customers can travel long distances with confidence. Fast-charging technology enables
quick top-ups, making long road trips convenient and accessible. In addition to charging
infrastructure, the company has focused on extending the range of its electric vehicles.
Mile after mile, its EVs deliver impressive ranges on a single charge, dispelling the myth
of range anxiety and facilitating long journeys without compromise.
● Autonomous Driving and Connectivity: The company's commitment to innovation
extends to the realm of autonomous driving and connectivity. Advanced driver-assistance
systems (ADAS) make driving safer and more convenient, while over-the-air (OTA)
updates continuously enhance vehicle performance and capabilities. Its investment in
autonomous technology aims to redefine the future of mobility, with a vision of fully
autonomous EVs that offer increased safety and convenience.
● Market Leadership and Competition: As a market leader in the EV industry, the
company has set the standard for excellence and sustainability. Its electric vehicles have
earned accolades for their performance, design, and efficiency. Despite competition from
both traditional automakers and emerging startups, the company's strong brand
recognition, technological advantage, and commitment to sustainability continue to set it
apart.
● Financial Performance and Investment: Financially, the company has demonstrated
remarkable resilience and growth. Its stock performance reflects investor confidence in
its vision and execution. In recent years, it has attracted significant investment, enabling
further expansion, innovation, and infrastructure development.
● Regulatory and Policy Influence: The company has actively engaged with governments
and regulators worldwide to promote policies that incentivize the adoption of electric
vehicles. Its advocacy for emissions reductions, clean energy initiatives, and consumer
incentives has influenced policy decisions in numerous regions, further solidifying its
role as a leader in sustainable transportation.
● Challenges and Resilience: No journey is without challenges, and the company has
faced its fair share. Supply chain disruptions, battery shortages, and global economic
uncertainties have tested its resilience. However, the company's ability to adapt, pivot,
and find innovative solutions in the face of adversity underscores its long-term viability
and commitment to its mission.
● Future Vision and Outlook: The future outlook for this company is luminous. With a
strong market presence, a commitment to innovation, sustainability, and a global reach, it
is well-poised to continue leading the electric vehicle revolution. As governments
worldwide intensify efforts to combat climate change and transition to clean energy, the
company's role in shaping the future of transportation is pivotal. Its unwavering
dedication to environmental responsibility, coupled with a relentless pursuit of
technological advancements, ensures that it remains at the forefront of the EV movement
for years to come.

Additionally, this company stands as a beacon of

hope in the transition to a sustainable and electrified
future. Its contributions to the EV industry are not
only noteworthy but also indicative of the
transformative potential of electric vehicles in
reshaping the automotive and energy landscape.
With an unwavering commitment to innovation,
sustainability, and global leadership, it is leading the
charge toward a cleaner, more efficient, and
environmentally responsible future for
transportation.
Trends in the Industry and Current Updates

India's economy, which is expanding quickly, is poised to become a manufacturing powerhouse

for a number of industries, including the production of electric vehicles. Under its "Make in
India" project, the Indian government wants to produce all-electric vehicles exclusively
domestically. The Indian EV market, on the other hand, is still in its infancy and has a strategy
for rapid expansion.

Despite predictions in the media that India's market for electric vehicles will grow to 17 million
units by 2030, the number of EVS sold last year was only able to surpass one million.

In order to promote domestic production and meet its deadline, the Indian government has
announced a number of initiatives, including FAME India (Faster Adoption and Manufacturing
of Hybrid and Electric Vehicles in India), the PLI scheme for the auto and the auto component,
and the PLI scheme for manufacturing of ACC.

Foxconn, a Taiwanese contract manufacturer, recently disclosed plans to establish a two-wheeler

EV production line in India.
The electric vehicle market has been developed in the nation by a number of companies,
including TATA Motors, Mahindra, Hyundai, Ola Electric, Ather Energy, Okinawa, TVS, MG,
Hero Electric, and others. According to Gaurav Rathore, co-founder of Eveez, both domestic and
foreign automakers have begun making significant investments in the manufacture of electric
vehicles in India.
"The Indian government is committed to achieving 30% electrification of total mobility by 2030
and with the growing interest of end users across EV segments, both domestic and foreign
manufacturers are setting up their production plants in India," Singh continued.

According to Tushaar Bajaj, co-founder and director of Virtus Motors, five important
characteristics that highlight India's indisputable potential serve as the foundation for its road
toward becoming a leading EV nation.

The government has created a favourable atmosphere for the expansion of the EV sector by
providing various laws in order to support the country's commitment to decreasing carbon
emissions and addressing climate change, according to Bajaj.

Furthermore, the nation's emphasis on creating a charging infrastructure and supporting

renewable energy sources is in line with what is needed for a successful EV environment. "The
government has started programs to build a nationwide network of charging stations, increasing
customer convenience and accessibility to EVs. A sustainable and clean source of electricity for
EV charging is also guaranteed by India's effort for renewable energy sources, such as solar and
wind power, according to the co-founder of Virtus Motors.

He further said that India is poised to become the next major centre of EV production as a result
of its concentrated efforts to promote EVs, manufacturing expertise, rising market, and emphasis
on charging infrastructure and renewable energy.
In Jammu and Kashmir, 5.9 million tonnes of lithium reserves have been discovered for the first
time in India, according to the Mines Ministry's announcement on Thursday.

The Ministry of Mines announced on Thursday that the "Geological Survey of India for the first
time established Lithium inferred resources (G3) of 5.9 million tonnes in the Salal-Haimana area
of the Reasi district of Jammu and Kashmir."

It further stated that state governments received 51 mineral parcels, including lithium and gold.
Non-ferrous metal lithium is one of the essential elements of EV batteries. According to the
ministry, there are 51 mineral blocks spread across 11 states, including Jammu and Kashmir
(UT), Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Odisha,
Rajasthan, Tamil Nadu, and Telangana. Of these 51 mineral blocks, five are related to gold and
the other blocks are related to commodities like potash, molybdenum, base metals, etc. The
blocks were made based on the work done by GSI from the field seasons of 2018–19 up until this
point.
According to BloombergNEF, lithium-ion battery prices increased last year for the first time in
the EV era. Elon Musk lamented lithium's "insane" surge and claimed that one of the major
challenges facing Tesla Inc. was the high cost of raw materials.

As Prime Minister Narendra Modi pledges to achieve net zero by 2070, the central government
has announced incentives worth at least $3.4 billion to speed up its sluggish adoption of EVs.
The theory is that producing the most expensive component—batteries—locally will lower the
final price for the mass market and position the nation as a potential exporter, taking advantage
of the soaring worldwide demand.

Billionaires like Mukesh Ambani, whose

Reliance Industries Ltd. is building an EV battery
facility as part of a larger $76 billion push into
sustainable energy, are interested in the efforts.
Ambani's is one of three businesses that will
receive incentives as part of a $2.3 billion scheme
to assist the development of innovative battery
cells, along with bullion refiner Rajesh Exports
Ltd. and scooter manufacturer Ola Electric
Mobility Pvt.

The second-most populous nation in the world

lacks a significant portion of the raw materials
required to meet domestic demand for lithium-ion
batteries, which Crisil predicts will increase 100-
fold by 2030, let alone to create on a worldwide
scale.

Demand for lithium, nickel, cobalt, and other metals used in lithium-ion batteries is increasing as
society shifts away from combustion engines powered by gasoline.

According to Manikaran Power Ltd. director Jasmeet Singh Kalsi, "the entry barriers are quite
high." The company is constructing the first lithium refinery in India and searching abroad for
nickel, cobalt, and copper assets. "Most of it has been seized by China."

India still has a long way to go before catching up, and it also has to contend with rival nations
like the US, which is pushing to increase local battery production to weaken China's market
dominance.

Best EV Stocks in the Indian Market

Based on our limited knowledge of the subject, we have identified 3 stocks in the EV sector and
3 supporting sectors, which can grow with the growth of EVs in India. The stocks are as follows:
● Tata Motors: Tata Motors Limited is an Indian multinational automotive manufacturing
company, headquartered in Mumbai, India, which is part of the Tata Group. The company
produces passenger cars, trucks, vans, coaches, and buses.

● Mahindra & Mahindra: Mahindra & Mahindra Limited, a leader in automotive, farm
and services businesses in India is headquartered in Mumbai. It was established in 1945
as Mahindra & Mohammed and later renamed as Mahindra & Mahindra. Part of the
Mahindra Group, M&M is one of the largest vehicle manufacturers by production in
India.

● Olectra Green Tech: Olectra Greentech Limited is an India-based company primarily

engaged in the manufacturing of composite polymer insulators and electrical buses. The
Company operates through three segments: the Insulator division, the e-bus division, and
the e-truck division. Its main products include Power Insulators and Electric Buses.
● Tata Elxsi: Tata Elxsi is a leading design and technology services provider for
Automotive, Broadcast, Communications, Healthcare, and Transportation.

● Amaraja batteries:
 ● Sona BLW:

Conclusion

In conclusion, the electric vehicle (EV) sector in India has undergone a remarkable
transformation in recent years. Fueled by environmental concerns, government incentives, and
technological advancements, it has evolved into a promising and dynamic industry with
substantial growth potential. The scope of this sector extends beyond just vehicle manufacturing,
encompassing battery production, charging infrastructure development, and electric mobility
services, making it a multifaceted and integrated ecosystem.

India's commitment to sustainable transportation, reflected in initiatives like the Faster Adoption
and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, reduced GST rates for EVs,
and ambitious plans for charging infrastructure expansion, underscores the nation's determination
to lead in the electric mobility space. These policies have not only incentivized consumers but
have also attracted domestic and international investments, fostering innovation and competition.

From an investment perspective, the stock performance of companies in the Indian EV sector has
been nothing short of impressive. Over the past few years, many players in the sector have
experienced significant share price growth, reflecting growing investor confidence in the
long-term prospects of electric mobility in India. This bullish sentiment is supported by
increasing sales volumes, expanding product portfolios, and strategic collaborations that are
positioning these companies for future success.
However, it's important to note that the EV sector is not without its challenges. Issues such as the
need for further infrastructure development, battery technology advancements, and pricing
competitiveness must be addressed to sustain this growth trajectory. Additionally, the sector
remains influenced by global factors, such as international competition and supply chain
dependencies, which can introduce volatility.

In summary, the EV sector in India represents a compelling investment opportunity and a

significant stride towards sustainable transportation. While past stock performance has been
positive, investors should remain vigilant and consider a diversified approach to navigate the
evolving landscape of this burgeoning industry. As India accelerates its transition to electric
mobility, prudent strategies and a long-term outlook will be key to capitalizing on the sector's
immense growth potential and ensuring a greener and more sustainable future for the country's
transportation ecosystem.

| ABHILEKH JHA| AKHILESH | AMAN RAJ GUPTA |

YATIKA |(GROUP-1)

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