Year 2019 was the worst performing year for the Auto Sector in India. With such a slowdown, almost every automobile company either in 2-wheeler segment or 4-wheeler segment, everyone reported a decline in the volume of vehicles sold compared to the corresponding season in the previous year.
But starting 2020, things are expected to change. In 2019, Indian Government had started pushing for Electric Vehicles and was aiming to move out of any non-renewable energy based vehicles 2-wheeler or 3-wheelers by 2025.
 |
| Electric Vehicle. Image Credits |
Due to this push, many companies had started their activities towards the development of Electric Vehicles in their Research and Development centers. Though nothing had materialized in 2019 since it was just a beginning, but things are soon expected to pickup in upcoming 3-5 years timeline.
Automotive maker Mahindra and Mahindra had been early starter and has been actively investing towards Electric Vehicles via Mahindra Electric Mobility Ltd, which was formerly known as Reva. In 2020, many news have started pouring in where in auto makers like Tata Motors, Maruti Suzuki, Hyundai have declared their launch of upcoming models in EV category.
This push is expected to be a game changer for the revival of Automotive Industry in India which shall rise back and the benefits shall pour in, in the upcoming 3-5 years investment time-frame.
Not only car makers would benefit from this development, Automotive parts manufacturers who are suppliers to Electric Vehicle manufacturers are also going to benefit from this revolution.
Thus keep an eye of such EV related business activities and analyse the best companies with their fundamentals and growth potentials and take a judgement for investment to reap good benefits.
No comments:
Post a Comment