Updated: November 29, 2024 3:47 PM IST 
Shares of passenger car manufacturers have been fluctuating a lot recently, but experts believe that growing competition in India’s electric vehicle (EV) market will change how these companies perform on the stock market. Tata Motors currently leads the EV market with a 58% share (as of October 2024) and offers five EV models: Nexon, Punch, Tiago, Tigor, and the new Tata Curvv EV. However, its market share has decreased from 74% last year, as competitors like Mahindra & Mahindra (M&M) and Maruti Suzuki are catching up.
Nirav Karkera from Fisdom Research told Moneycontrol, “The EV market in India is still in its early stages, with companies mostly focused on assembling vehicles for now. Tata Motors has an advantage for being the first to enter, but M&M and Maruti seem to be the strongest contenders as the market grows.”
Mahindra & Mahindra (M&M) has made strong moves in the electric vehicle (EV) market, launching two new EV models and investing heavily in the EV sector. Nirav Karkera from Fisdom Research commented, “Mahindra is backing up its plans with real investments, and that’s impressive.”
At the same time, Maruti Suzuki is entering the EV market with its much-anticipated e-Vitara, an electric SUV that will be produced at Suzuki’s Gujarat plant starting in 2025. Recently unveiled in Milan, this vehicle will be sold in both India and overseas, with almost half of its production intended for export.
However, the shift to EVs faces challenges like a lack of charging stations and high costs. Karkera, while speking to Moneycontrol pointed out that while government programs like the FAME II scheme have provided some incentives, more actions are needed to boost demand for EVs.
Interestingly, the slower pace of EV adoption could benefit later entrants like Maruti Suzuki. Karkera noted, “Being late to the market might actually work in Maruti’s favour.” Maruti’s upcoming EV models, which will feature 5-star NCAP safety ratings, could give them a competitive edge.
Tata Motors’ stock has skyrocketed by nearly 400% since it began its EV journey five years ago. Similarly, M&M has delivered comparable gains, boosted by successful launches of traditional models like the Thar and XUV500. In contrast, Maruti Suzuki’s stock has lagged, offering only about 50% returns, significantly underperforming major market indices.
However, the dynamics are shifting. Tata Motors has faced a dip since July, partly due to losing market share, while Maruti’s stock has been steady since September. Analysts believe that with Hyundai yet to announce its upcoming EV plans, M&M and Maruti could take the lead in the next year, driven by new EV models and competitive strategies.
Tata Motors has announced plans to establish a greenfield facility in Tamil Nadu, set to become operational by 2032. The plant, expected to create approximately 5,000 jobs, will produce both internal combustion engine vehicles (ICEVs) and electric vehicles (EVs) for domestic and international markets. The facility will also manufacture models for Jaguar Land Rover (JLR), Tata Motors’ British luxury car division.
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