India’s EV industry at a glance
In FY26, registrations of electric four-wheelers reached 1.94 lakh, up 91.3% from the previous year. Electric two-wheeler registrations also grew by 21.8%, reaching around 14 lakh units.
The government is supporting the shift through the PM E-DRIVE scheme. It was launched with an outlay of ₹10,900 crore to encourage EV adoption, improve charging facilities and support the local manufacturing ecosystem/ The scheme has been extended to March 31, 2028, though the end dates differ for some vehicle categories.
Buying an EV still comes with a few concerns. Electric vehicles usually cost more upfront than similar petrol vehicles. Charging facilities are also not easy to find everywhere. Buyers may hesitate if charging is difficult or they are unsure about battery life and repair costs.
The growth in sales is only one part of the picture. A company may sell more EVs but still face pressure on its profits. Another company may not make vehicles at all but could supply parts to several manufacturers. So each company in the EV sector has different business models, opportunities, and risks.
Overview of top 5 EV stocks
Here are 5 listed companies with a connection to the EV industry. They operate in different parts of the market, so their businesses may not respond to EV growth in the same way.
Disclaimer: The stocks listed above are selected based on market capitalisation. The information is provided for educational and informational purposes only and should not be considered investment advice.
Tata Motors Passenger Vehicles
As of October 2026, Tata Motors sells 7 electric cars, including Nexon EV, Punch EV, Curvv EV, and Sierra EV. It has been one of the major players in India’s electric passenger vehicle market. New models and customer demand will be important to watch as more carmakers enter this space.
Hero MotoCorp
Hero MotoCorp sells electric scooters under its brand called VIDA. It also has a stake in Euler Motors, a company that makes electric commercial vehicles. This gives Hero a presence in both electric scooters and commercial vehicles, apart from its main petrol two-wheeler business.
Bosch
Bosch is a popular company that has been making spare parts for automobiles. In March 2026, it entered into a joint venture with Tata AutoComp to manufacture and sell xAxle systems and electric motors in India. These are some of the main parts used in electric vehicles.
UNO Minda
UNO Minda supplies components for two-wheelers, three-wheelers and passenger vehicles. Its EV product range includes items such as on-board chargers and other electrical systems. The company also supplies parts for conventional vehicles, so EV demand is only one part of its business.
Sona BLW Precision Forgings
Sona BLW, also known as Sona Comstar, makes auto components, including parts for electric vehicles. In FY26, it earned ₹1,154 crore from battery vehicles, a 35% increase from the previous year, according to its annual report. This shows how much its EV business has grown over the year.
How to pick the right EV stocks
Before choosing EV stocks, find out how the company is involved in electric mobility. These points can help:
- Know the business: Check how much of the company’s business comes from EVs or EV-related products. A company may have an EV product range but still earn most of its revenue from petrol and diesel vehicles.
- Vehicle sales and market share: For vehicle makers, look at how many EVs they sell and whether their share of the market is changing. Just because the company made new launches doesn’t mean it will have strong sales.
- Battery and motor technology: Check whether the company makes batteries, motors or related EV parts. Also, see which vehicle makers use its products and whether demand for these parts is growing.
- Orders from vehicle makers: For component suppliers, new contracts can give an idea of future demand. Check whether the orders are for EV parts and when production is expected to begin.
- Manufacturing capacity: See whether the company can make enough products to meet demand. New factories and production lines take time to set up and may not deliver results immediately.
- Range of customers: A supplier that works with several vehicle makers may not depend on the success of just one brand. Check which companies it supplies and how much of its business depends on its largest customers.
The bottom line
EV stocks can give you an opportunity to invest in India’s shift towards electric mobility. But if you buy shares of one company, your returns depend entirely on how that business performs. A drop in revenue or a delay in new products can hurt its stock price.
For wider exposure to the EV industry, you can explore thematic funds linked to electric mobility and newer automotive technology. For a more passive approach, you can explore the Nifty EV & New Age Automotive Index, which tracks companies involved in this space.
You can explore mutual funds that track the Nifty EV index or actively invest in EV stocks on the Millions app. To invest a small amount every month, you can also set up an SIP in a few minutes. Make sure to understand the fund’s holdings, expense ratio, exit load and risk level before investing.
