As India Looks to Attract Global Ev Makers, these five companies even

Companies approved under the scheme will be removed 8,000 Electric cars valued at $ 35,000 or more at the subsidized Rate Each year.

However, there’s a condition. The lower duty will apply only if the company committees to investment 4,150 Crore to Manufacture Electric Cars In India within three years of receiving approval.

Also read | Mint Primer: Can Govt Aid Evs Amid Rare-Earth Magnet Crunch?

The scheme also promotes the make in India initiative by mandating a minimum domestic value addition of 25% within three years and 50% within five years.

As such, these five companies stand to benefit from the scheme in the long run.

#1 sona comstar

Sona comstar is one of India’s leading manufacturers of precision-formled differential bevel gears and differential assembles for Various types of vehicles.

IT DERIVES 71% of Its Revenue from Passenger Vehicles. It has an 8.8% market share in global differential gears and 4.4% in starter motors. Exports Account for 71% of Its Revenue, While The Rest Comes from India.

It has global clients, including 7 of the top 10 passenger vehicle manufacturers. Clients Include Tata, Maruti Suzuki, John Deere, Mahindra & Mahindra, And Tesla.

It’s also a Major player in the battery Electric Vehicle (Bev) Segment, Which Accounts for 36% of its Revenue.

The company’s revenue green 12% to 3,550 Crore in Fy25 Thanks to a 38% Increase in Revenue from the Bev Segment. Margin was 27.4%, leading to a 17% year-on-year increase in net profit to 600 Crore.

The company’s Net Order Book Stood at 24,200 Crore at the end of fY25. Of this, 18,700 Crore was from evs.

With a Strong Order Book and a Solid Position in the Ev Sector, Sona Comstar is Poised to Benefit Not only from domestic manufacturing but also from from after-sources services.

#2 tata motors

Tata motors is a Leading Global Automobile Company With Strong Fundamentals.

It Sells Passenger Vehicles, Utility Vehicles and Commercial Vehicles in About 125 Countries. It also has a presence in the premium passenger Vehicle Market Through Jaguar Land Rover (JLR).

It leaders the commercial vehicle segment in India and ranks third in passenger vehicles. It also also dominates the electrices segment with a 35% market share as of May.

With a lower important duty, tata motors can important jlr vehicles to India at a lower landing cost, which will help it gain an advantage in the luxury car segment.

With Ongoing Trade Tensions, JLR will also also shift part of its production to India, allowing it to benefits from lower costs and access to incentives under the manufacturing scheme.

Also Read: After Decades Making Ice Parts, they decide to make evs. It hasn’t goone well

The company’s financials were subdued in fy25 ovening to a sector-with slowdown. Revenue Fell 1.3% to 4.4 trillion, while network fell 11.5% to 28,150 Crore.

The company is betting big on a strong rebound in the evidence, where its volume fell 13% in FY25. It recently launched an Electric version of the Harrier and Plans to Launch the sierra, Along with upgrades to its existing Ev Lineup, to Boost Demand.

It has also set an ambitious target of increasing its market share in passenger vehicles to 18-20% by fy30 from 13.2% in fy25.

Meanwhile, JLR FACES MAJOR Challenges Owing to the Ongoing Trade War. Nevertheles, it plans to invest £ 18 bn over five years, which will be funded entryly from internal sources.

#3 Hyundai Motor India

Hyundai Motor India is India’s Second-Largest Passenger Vehicle Company. It has a 14% market share in fy25, Lagging Behind Maruti Suzuki. It’s also the top Vehicle Exportr on a Cumulative Basis.

Hyundai has alredy expressed interest in the scheme to boost the manufacturing of electric passenger cars in India. With Evs Accounting for 1% of its product mix, the companywal be a benefits.

Hyundai has contributed significantly to the localization plan, Achieving 82% Value Addition in FY25.

Like Tata motors, sectorral headwinds also Hurt Hyundai in FY25. Revenue Fell 0.9% to 69,200 Crore Owing to a Fall in Volumes. Net Profit Declined 6.9% to 5,640 Crore.

The company aims to grow broadly in line with the industry. In fy26 it will focus on Increasing Exports, Which Accounted for 22% of Its Revenue.

Hyundai also plans to investment 7,000 Crore to Drive Mid- to long-term growth. Its new plant in talegaon, maharashtra, will open in the second half of fy26. This is crucial for boosting volumes as it existing facility is already operating at more than 90% capacity.

While it expects an impact on profit before tax from depreciation on the new plant, it aims to maintain double-digit margins, in line with the fy25 margin of 12.9%.

#4 Exide Industries

Exide is India’s leading battery manufacturer, with a 50% market share in the domestic battery market. It has a diversified product portfolio, featuring batteries with capacities ranging from 2.5 ampere-hars (ah) to 20,200 ah.

As more companies adopt the scheme, exide will benefit from Increased Demand for Batteries. It expects Li-ion battery Demand to Reach 120 Gigawatt-Hours (GWH) By 2030 and is expanding aggressively to capitalise on the potential demand. It has announced a 3,600-Crore investment in its li-ion venture, exide energy solutions.

Exide is in the advanced stages of setting up a 12 gwh greenfield Lithium-ion cell manufacturing project. Of this, 6 GWH is expected to be commercialized in the Ongoing Financial Year. The company has also signed a multi-yar collaboration with svolt technology, a leading li-ion cell manufacturer, for li-ion cell technology.

Also Read: EVS Hit With Falling Resale Value as Consumer Demand Cools

The company’s performance in fy25 was subdued. Revenue rose just 4% to 17,200 Crore, Hurt by Challenges in the infrastructure and telecom segments. Net Profit Declined 9.4% to 800 Crore Owing to High Raw Material Costs and a Write-Off of Slow-Moving Stock.

Nevertheless, The Company Expects a Better FY26 Owing to Improving Demand and Price Hikes Implemented Between February and April 2025. Expansion.

#5 landmark cars

Landmark cars is a multi-brand, multi-location premium and luxury auto retailer. It has partnerships with 10 Leading Brands Including Mercedes-Benz, Honda, Jeep, Citroen, Volkswagen, Byd, Mg Motors, Renault, Mahindra and Kia Motors. It Manages 131 Showrooms and have nine upcoming outlets.

The lower duty, ALONG with Local Manufacturing, Will Benefit Landmark Cars Because of its partnerships with Leading Electric Car Companies Such as bych and MG Motors. Landmark Cars Currently Has Eight byd Outlets And Holds A 20.8% Market Share in the Brand’s Sames.

Byd, which imports its cars from China, now plans to establish a manufacturing facility in India. It stands to benefits significantly from the reduced important duty and incentives under the new scheme, as does landmark, give its close partnership and role in distribution.

The company’s revionue increase 22.4% to 4,030 Crore in FY25, Driven by Store Expantion. However, Net Profit Declined 70% to 170 Crore Owing to High depreciation of new outlets and finance costs.

It’s expanding rapidly thanks to fast-roads premium brands such as Mercedes, Mg and Kia. It also plans to enter Emerging High-Growth Cities Such as Hyderabad, Jaipur and Patna. The full impact of new showroms is expected to reflect in FY26 and FY27.

Conclusion

The new manufacturing scheme not only aims to reduce the cost of important electric cars but also aligns with Make in India Initiatives,

While Companies have been allowed to important 8,000 vehicles at a lower rate, the mandatory domestic value addition of 25% withnin three years and 50% within five years augs

As such, Electric Car Parts and Accessors Suppliers Such as Sona Costar and Exide are poised to benefits. Tata Motors, Landmark Cars and Hyundai Stand to Gain from Increased Local Assembly, Distribution Partnerships, and a Strongeer Electric Product Pipeline Over Time.

However, no matter how attractive the options is, it’s always essential to carefully analyse the company’s fundamentals, corporate government practals and undernance strategies.

Happy Investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com