EV Sector Vs Auto Sector – Which One Will Dominate?

The EV sector is revolutionizing transportation with sustainable mobility, while the auto sector adapts with hybrid and ICE advancements. Market trends, government policies, and technology will determine dominance, shaping future investments and consumer preferences in the evolving automotive landscape.

EV Sector Overview

The EV sector is revolutionizing transportation with electric vehicles replacing traditional fuel-powered cars. Driven by sustainability, government incentives, and technological advancements, this industry is expanding rapidly, with automakers, battery manufacturers, and charging infrastructure companies playing a crucial role in growth.

Despite challenges like high costs, limited charging networks, and battery supply constraints, the EV sector continues to evolve. Innovations in battery efficiency, increasing investments, and global climate policies are pushing the industry forward, making EVs a key driver of the future of mobility and clean energy.

Auto Sector Overview

The auto sector is a dynamic industry encompassing vehicle manufacturing, sales, and services. It includes passenger cars, commercial vehicles, and two-wheelers. Advancements in automation, electric mobility, and safety features are reshaping the sector, driven by evolving consumer preferences and regulatory standards.

Despite challenges like supply chain disruptions, fuel price fluctuations, and environmental concerns, the auto sector continues to grow. Innovations in EVs, autonomous driving, and smart connectivity are transforming mobility, making the industry a crucial contributor to economic development and technological progress.

Best Stocks In The Electric Vehicle Sector

The table below shows the best stocks in the EV sector based on a 1Y return.

Name	Close Price (rs)	1Y Return (%)
Kaynes Technology India Ltd	4,649.75	73.11
Eicher Motors Ltd	5,247.90	30.73
Mahindra and Mahindra Ltd	2,596.55	29.65
Vedanta Ltd	401.45	29.52
Solar Industries India Ltd	10,987.10	26.8
Ashok Leyland Ltd	205.14	18.58
UNO Minda Ltd	830.75	13.91
NLC India Ltd	236.27	2.24
Samvardhana Motherson International Ltd	118.93	-0.56
Polycab India Ltd	5,040.75	-3.53

Top Stocks In The Auto Sector

The table below shows the top stocks in the auto sector based on a 1Y return.

Name	Close Price (rs)	1Y Return (%)
Maharashtra Scooters Ltd	10,632.50	41.68
ASK Automotive Ltd	413.9	39.17
Minda Corporation Ltd	519.35	23.98
Ashok Leyland Ltd	205.14	18.58
TVS Motor Company Ltd	2,464.95	18.13
Force Motors Ltd	8,876.10	13.62
Asahi India Glass Ltd	614.05	8.18
CEAT Ltd	2,867.35	7
Balkrishna Industries Ltd	2,388.05	1.93
TVS Holdings Ltd	8,438.85	1.56

Fundamental Analysis Of the EV Sector

Kaynes Technology India Ltd

Kaynes Technology India Ltd, incorporated in 2008, is a leading integrated electronics manufacturing company specializing in end-to-end and IoT-enabled solutions. It offers conceptual design, process engineering, and lifecycle support across automotive, aerospace, defense, medical, railways, IT, IoT, industrial, nuclear, and outer-space sectors, ensuring advanced technology-driven manufacturing excellence.

Market Cap: ₹31,724.06 Crore

Close Price: ₹4,649.75

1Y Return: 73.11%

1M Return: 22.04%

6M Return: -7.9%

5Y average net Profit Margin: 5.79%

5Y CAGR: NA

Dividend Yield: NA

Sector: Electrical Components & Equipments

Eicher Motors Ltd

Established in 1948, Eicher Motors Ltd is a key player in India’s commercial vehicle segment. Through its joint venture, VE Commercial Vehicles, the company is developing electric trucks and buses to accelerate India’s EV transition. It focuses on efficient, eco-friendly mobility solutions for urban and intercity transportation.

Market Cap: ₹1,47,476.97 Crore

Close Price: ₹5,247.90

1Y Return: 30.73%

1M Return: 10.41%

6M Return: 11.5%

5Y average net Profit Margin: 18.02%

5Y CAGR: 32.85%

Dividend Yield: 0.95%

Sector: Trucks & Buses

Mahindra and Mahindra Ltd

Mahindra & Mahindra Ltd, founded in 1945, is a leading diversified automobile company in India. It operates across two-wheelers, passenger and commercial vehicles, tractors, and earthmovers, with business interests in finance, IT, defense, logistics, hospitality, energy, aerospace, and industrial equipment.

Market Cap: ₹3,13,159.68 Crore

Close Price: ₹2,596.55

1Y Return: 29.65%

1M Return: 1.97%

6M Return: -13.95%

5Y average net Profit Margin: 5.11%

5Y CAGR: 56.04%

Dividend Yield: 0.75%

Sector: Four Wheelers

Vedanta Ltd

Founded in 1976, Vedanta Ltd is a diversified natural resources company. It is investing in the EV value chain by targeting lithium and other battery minerals, crucial for electric vehicle manufacturing. Vedanta’s global mining operations position it as a vital supplier in the clean energy and EV ecosystem.

Market Cap: ₹1,71,669.38 Crore

Close Price: ₹401.45

1Y Return: 29.52%

1M Return: 9.66%

6M Return: -21.08%

5Y average net Profit Margin: 5.7%

5Y CAGR: 44.92%

Dividend Yield: 6.39%

Sector: Metals – Diversified

Solar Industries India Ltd

Incorporated in 1995, Solar Industries India Ltd is a leader in explosives and defense products. It plays an indirect but crucial role in the EV sector by supporting mineral exploration for lithium, graphite, and rare earths—essential for EV battery production—through safe, efficient mining support and technologies.

Market Cap: ₹1,02,195.85 Crore

Close Price: ₹10,987.10

1Y Return: 26.8%

1M Return: 27.53%

6M Return: 0.34%

5Y average net Profit Margin: 11.66%

5Y CAGR: 65.37%

Dividend Yield: 0.08%

Sector: Commodity Chemicals

Ashok Leyland Ltd

Established in 1948, Ashok Leyland Ltd is one of India’s largest commercial vehicle manufacturers. Its EV initiative, Switch Mobility, designs and manufactures electric buses and light commercial vehicles. The company is focused on zero-emission, sustainable mobility solutions tailored for public transport and last-mile delivery across global markets.

Market Cap: ₹61,649.45 Crore

Close Price: ₹205.14

1Y Return: 18.58%

1M Return: 1.91%

6M Return: -8.98%

5Y average net Profit Margin: 1.51%

5Y CAGR: 39.99%

Dividend Yield: 2.36%

Sector: Trucks & Buses

UNO Minda Ltd

Uno Minda Ltd, incorporated in 1958, is a leading manufacturer and supplier of automotive solutions. It produces 25+ components, including switches, lights, alloy wheels, and seats, catering to passenger cars, commercial vehicles, and electric/hybrid markets for Original Equipment Manufacturers (OEMs).

Market Cap: ₹49,590.53 Crore

Close Price: ₹830.75

1Y Return: 13.91%

1M Return: 6.37%

6M Return: -20.2%

5Y average net Profit Margin: 4.37%

5Y CAGR: 49.06%

Dividend Yield: 0.23%

Sector: Auto Parts

NLC India Ltd

NLC India Ltd, founded in 1956, is a government-owned mining and power generation company. While rooted in lignite mining, it is pivoting toward renewable energy. With investments in solar and wind power, NLC supports clean electricity supply for EV charging networks and sustainable infrastructure development.

Market Cap: ₹34,503.68 Crore

Close Price: ₹236.27

1Y Return: 2.24%

1M Return: 23.82%

6M Return: -14.5%

5Y average net Profit Margin: 10.1%

5Y CAGR: 40.21%

Dividend Yield: 1.21%

Sector: Metals – Diversified

Samvardhana Motherson International Ltd

Samvardhana Motherson International Ltd is a leading automotive components manufacturer, supplying to original equipment manufacturers worldwide. It is among the largest global producers of exterior rear-view mirrors and a key player in polymer-based interior and exterior modules and wiring harnesses.

Market Cap: ₹90,725.99 Crore

Close Price: ₹118.93

1Y Return: -0.56%

1M Return: 9.94%

6M Return: -40.81%

5Y average net Profit Margin: 1.94%

5Y CAGR: 26.68%

Dividend Yield: 0.6%

Sector: Auto Parts

Polycab India Ltd

Established in 1996, Polycab India Ltd is India’s largest manufacturer of wires and cables. It plays a critical role in EV infrastructure by supplying specialized cables for EV charging stations and grid systems. Polycab’s energy-efficient products ensure safe, scalable electrification essential to India’s growing EV ecosystem.

Market Cap: ₹78,277.88 Crore

Close Price: ₹5,040.75

1Y Return: -3.53%

1M Return: 7.74%

6M Return: -29.84%

5Y average net Profit Margin: 8.88%

5Y CAGR: 46.92%

Dividend Yield: 0.58%

Sector: Electrical Components & Equipments

Fundamental Analysis Of The Auto Sector

Maharashtra Scooters Ltd

Maharashtra Scooters Ltd is a manufacturing and unregistered core investment company specializing in dies, jigs, fixtures, and die-casting components for the automotive industry. It plays a key role in supplying precision-engineered products to leading automakers and industrial clients.

Market Cap: ₹12,451.60 Crore

Close Price: ₹10,632.50

1Y Return: 41.68%

1M Return: 18.94%

6M Return: -5.99%

5Y average net Profit Margin: 73.01%

5Y CAGR: 38.41%

Dividend Yield: 1.56%

Sector: Two Wheelers

ASK Automotive Ltd

ASK Automotive Ltd, incorporated in 1988, is India’s leading manufacturer of advanced braking systems for two-wheelers. With a 50% market share in FY24 across OEMs and the branded independent aftermarket, the company dominates brake-shoe and AB system production, ensuring safety and performance for millions of two-wheeler users.

Market Cap: ₹8,588.52 Crore

Close Price: ₹413.90

1Y Return: 39.17%

1M Return: 26.94%

6M Return: 0.42%

5Y average net Profit Margin: 5.58%

5Y CAGR: NA

Dividend Yield: 0.23%

Sector: Auto Parts

Minda Corporation Ltd

Minda Corporation Ltd, a leading automotive component manufacturer in India, operates under Spark Minda with a global presence. Formed in 2012 after a business split, it specializes in security systems, wiring harnesses, and interior systems for the automotive industry.

Market Cap: ₹12,558.12 Crore

Close Price: ₹519.35

1Y Return: 23.98%

1M Return: 9.58%

6M Return: -12.94%

5Y average net Profit Margin: 2.24%

5Y CAGR: 57.58%

Dividend Yield: 0.27%

Sector: Auto Parts

Ashok Leyland Ltd

Ashok Leyland Ltd, the flagship company of the Hinduja Group, is a leading manufacturer of medium and heavy commercial vehicles. Headquartered in Chennai, it operates in 50 countries and has trained over 800,000 drivers through its training institutes.

Market Cap: ₹61,649.45 Crore

Close Price: ₹205.14

1Y Return: 18.58%

1M Return: 1.91%

6M Return: -8.98%

5Y average net Profit Margin: 1.51%

5Y CAGR: 39.99%

Dividend Yield: 2.36%

Sector: Trucks & Buses

TVS Motor Company Ltd

TVS Motor Company Ltd is a leading two-wheeler manufacturer in India, producing motorcycles, scooters, and mopeds. It is the only company with a strong presence across all three segments, including mopeds, and serves both domestic and international markets with a diverse range of two- and three-wheeler offerings.

Market Cap: ₹1,17,547.04 Crore

Close Price: ₹2,464.95

1Y Return: 18.13%

1M Return: 7.94%

6M Return: -8.28%

5Y average net Profit Margin: 3.58%

5Y CAGR: 57.67%

Dividend Yield: 0.32%

Sector: Two Wheelers

Force Motors Ltd

Force Motors Ltd, the flagship company of the Abhay Firodia Group, manufactures small and light commercial vehicles, multi-utility vehicles, and tractors. Formerly Bajaj Tempo, it exports to markets in the Middle East, Asia, Latin America, and Africa.

Market Cap: ₹11,147.18 Crore

Close Price: ₹8,876.10

1Y Return: 13.62%

1M Return: 31.54%

6M Return: 23.39%

5Y average net Profit Margin: 0.14%

5Y CAGR: 65.64%

Dividend Yield: 0.24%

Sector: Four Wheelers

Asahi India Glass Ltd

Asahi India Glass Ltd is a leading integrated glass solutions provider in India, specializing in automotive and architectural glass. Established in 1984, it offers end-to-end solutions, from manufacturing and processing to fabrication and installation, serving customers domestically and internationally.

Market Cap: ₹15,105.61 Crore

Close Price: ₹614.05

1Y Return: 8.18%

1M Return: 3.33%

6M Return: -20.13%

5Y average net Profit Margin: 7.69%

5Y CAGR: 32.65%

Dividend Yield: 0.32%

Sector: Auto Parts

CEAT Ltd

CEAT Ltd, established in 1958, is one of India’s largest and fastest-growing tyre manufacturers. A part of the RPG Group since 1982, CEAT is known for its strong presence in the tyre industry and was recognized among the Top 25 best workplaces in manufacturing by GPTW in 2022.

Market Cap: ₹11,638.91 Crore

Close Price: ₹2,867.35

1Y Return: 7.00%

1M Return: 19.72%

6M Return: -6.14%

5Y average net Profit Margin: 3.36%

5Y CAGR: 32.52%

Dividend Yield: 1.04%

Sector: Tires & Rubber

Balkrishna Industries Ltd

Balkrishna Industries Ltd (BKT), established in 1987, specializes in Off-Highway tires for agriculture, construction, industrial, earthmoving, port, mining, ATV, and gardening applications. With over 30 years of expertise, BKT serves global markets with high-performance tire solutions.

Market Cap: ₹47,978.43 Crore

Close Price: ₹2,388.05

1Y Return: 1.93%

1M Return: -2.28%

6M Return: -16.49%

5Y average net Profit Margin: 16.12%

5Y CAGR: 25.30%

Dividend Yield: 0.64%

Sector: Tires & Rubber

TVS Holdings Ltd

TVS Holdings Ltd, formerly known as Sundaram Clayton Ltd, was incorporated in 1962 in Chennai and is part of the TVS Group. The company specializes in manufacturing and distributing non-ferrous gravity and pressure aluminum die castings, playing a vital role in automotive and industrial component supply chains.

Market Cap: ₹20,212.78 Crore

Close Price: ₹8,438.85

1Y Return: 1.56%

1M Return: 7.56%

6M Return: -35.04%

5Y average net Profit Margin: 1.78%

5Y CAGR: 46.98%

Dividend Yield: 0.94%

Sector: Auto Parts

EV Sector Performance & Growth

The below table shows the EV sector performance & growth based on a 5-year net profit margin.

Name	Close Price (rs)	5Y Avg Net Profit Margin (%)
Sona BLW Precision Forgings Ltd	501.95	17.9
Bajaj Auto Limited	8,125.55	16.52
Exide Industries Ltd	366	10.02
Hero MotoCorp Ltd	3,626.35	9.31
Sundram Fasteners Ltd	950.75	9.09
Polycab India Ltd	5,025.45	8.88
Bosch Ltd	28,276.80	8.76
Amara Raja Energy & Mobility Ltd	1,069.75	7.85
Havells India Ltd	1,483.20	7.79
Asahi India Glass Ltd	634.6	7.69

Auto Sector Performance & Growth

The below table shows the auto sector performance & growth based on a 5-year net profit margin.

Name	Close Price (rs)	5Y Avg Net Profit Margin (%)
Maharashtra Scooters Ltd	10,632.50	73.01
Sona BLW Precision Forgings Ltd	421.85	17.9
Bajaj Auto Limited	7,685.10	16.52
Balkrishna Industries Ltd	2,388.05	16.12
Hero MotoCorp Ltd	3,659.20	9.31
Sundram Fasteners Ltd	882.9	9.09
Bosch Ltd	27,289.10	8.76
Asahi India Glass Ltd	614.05	7.69
Endurance Technologies Ltd	1,836.30	6.82
Maruti Suzuki India Ltd	11,482.00	6.7

Government Policies & Incentives For The Electric Vehicle and Auto Sector

Governments globally support the EV and auto sectors with incentives like tax rebates, subsidies, and relaxed import duties. Policies such as India’s FAME scheme and the U.S. EV tax credits encourage electric mobility while fuel efficiency norms drive overall automotive innovation.

For the auto sector, regulations focus on emission control, safety standards, and local manufacturing through initiatives like India’s PLI scheme. Investments in EV charging networks, battery production, and green transport infrastructure further boost both sectors, shaping a sustainable and technologically advanced future.

Challenges Faced By EV and Auto Sector

The main challenges faced by the EV and auto sectors include high production costs, supply chain disruptions, and evolving regulatory norms. While EVs struggle with battery efficiency and charging infrastructure, the auto sector faces emission concerns and shifting consumer preferences towards sustainable mobility.

1. High Production Costs: EV manufacturing involves expensive battery technology, while auto sector production costs rise due to advanced safety and emission standards, affecting affordability.

2. Supply Chain Disruptions: Shortages of semiconductor chips and critical raw materials impact production in both sectors, delaying deliveries and increasing costs.

3. Charging and Fuel Infrastructure: EVs require widespread charging networks, while traditional automobiles depend on stable fuel availability; both need significant investments.

4. Regulatory and Market Challenges: Strict emission norms push automakers toward cleaner technology, while fluctuating government policies and incentives impact market stability.

Future Outlook Of EV and Auto Sector

The future of the EV and auto sectors is driven by innovation, sustainability, and evolving consumer preferences. EV adoption is expected to rise with advancements in battery technology, charging infrastructure, and government incentives while traditional automakers shift towards hybrid and electric mobility solutions.

Despite challenges, both sectors will witness significant growth driven by smart technologies, autonomous driving, and stringent emission norms. Investments in green mobility, AI-driven automation, and alternative fuels will shape a more efficient, eco-friendly transportation industry, ensuring a balanced transition towards a sustainable automotive future.

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Difference Between Auto Sector And EV Sector – Conclusion

• The EV sector is transforming mobility with sustainable solutions. Driven by battery innovations, government incentives, and rising consumer interest, electric vehicles are shaping the future of eco-friendly and efficient transportation.
• The auto sector includes passenger and commercial vehicles, evolving with advancements in automation, safety, and fuel efficiency. A shift towards electric and hybrid models is redefining industry growth and technological progress.
• Governments support both the Electric Vehicle and Auto sectors with subsidies, tax benefits, and emission norms. Policies like FAME and PLI encourage EV adoption, local manufacturing, and sustainable mobility investments.
• Challenges like high production costs, supply chain disruptions, and charging infrastructure gaps hinder EV growth, while the auto sector struggles with emission regulations, fluctuating fuel prices, and shifting consumer preferences.
• Advancements in battery technology, autonomous driving, and AI-driven automation will shape both the EV and Auto sectors. Green mobility, alternative fuels, and stricter emission norms will drive a sustainable and efficient automotive industry.
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Electric Vehicle Sector Vs Auto Sector – FAQs

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.