Green and Growing: Why Investing in Electric Vehicles is a No-Brainer

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Hey there, fellow Earth lovers and savvy investors! If you’re not already invested in electric vehicles, what are you waiting for? They’re the future of transportation, and they’re taking the world by storm (in a good way, not a climate change way).

Are you tired of paying a fortune for your petrol-fueled car? Well, the good news is that the price gap between battery-powered and fossil fuel-run vehicles is shrinking faster than my bank account after a weekend of online shopping. This means more and more people are opting for greener options and choosing to go electric. In 2020, electric vehicles were priced at a whopping 137% higher than their petrol-powered counterparts, but that gap has now reduced to just 73%. And the reason for this reduction is two-fold. Firstly, traditional petrol vehicles have become more expensive due to tighter emission regulations. Secondly, battery costs are falling as the raw materials used to manufacture them, like lithium, are becoming cheaper.

The decrease in battery costs is great news for automakers, who are passing on the benefits to consumers. And it seems to be working. Electric vehicles are no longer just for big city dwellers. In fact, sales of EVs are picking up in non-metro markets too, thanks to the availability of more affordable models in the mass segment and the spread of charging infrastructure. Even luxury car brands like Mercedes, BMW, Audi, and Volvo are witnessing a similar trend beyond the big cities.

In fact, Tata Motors, which accounts for more than 80% of sales in the electric four-wheeler segment, has seen a significant portion of its Tiago EVs going to first-time buyers in states like Bihar, Madhya Pradesh, Uttar Pradesh, and Andhra Pradesh. Ather Energy, which sells electric scooters, reports that non-metro centers contribute 53% to overall sales.

It’s not just the environment that stands to gain from this trend. With electric car sales expected to more than double and cross the 100,000-mark for the first time in 2023, investors are taking note too. Manufacturers like Maruti Suzuki, Hyundai Motor India, and Tata Motors are lining up more than a dozen electric vehicle models for launch in the next two to three years. So if you want to be a part of this green revolution, it’s time to plug in and power up.

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Arvind Kothari

Founder - Niveshaay Investment Advisors | The content in this article is purely the author’s personal opinion and is for informational and educational purposes only. It should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy / sell any security or financial products. The views and opinions stated in the content belong to the author. NIVESHAAY INVESTMENT ADVISORS does not uphold nor promote any of the views / opinions. | NIVESHAAY INVESTMENT ADVISORS is a SEBI registered research analyst (Regn. No. INA000017541)

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