EV stocks to benefit after FM announces boost for EV adoption with Solar PV cells in budget 2025EV stocks to benefit after FM announces boost for EV adoption with Solar PV cells in budget 2025

Introduction

Introduction

The Union Budget 2025 has given a strong push to the electric vehicle (EV) sector, with key measures focusing on solar PV cells and EV batteries. These initiatives aim to accelerate clean energy adoption, benefiting EV stocks and boosting sector growth potential.

Key Budget Proposals Supporting EV Adoption

• Budget supports EV ecosystem with local battery manufacturing.  
• Solar PV cells included to reduce fossil fuel reliance.  
• Rs 109 billion allocated for the PM’s E-drive scheme.  
• Incentives for EV sales, manufacturing, and charging stations.  
• Measures to speed up India’s shift to clean energy.

Also read : Fertilizer and agriculture stocks to benefit after FM announces to boost the sector in union budget 2025

Key stocks to watch:

Maruti Suzuki India Ltd :

On February 1, 2025, Maruti Suzuki India Ltd opened at ₹12,320.00, up 4.83% from its previous close of ₹12,310.65. The stock reached a high of ₹13,150.00 (6.74%) and a low of ₹12,228.65. By 1:30 PM, it traded at ₹12,905.55, with a market cap of ₹4,05,753.81 crore.

Maruti Suzuki rose over 6%, driven by its upcoming electric vehicle, the E-Vitara, which offers a 500+ km range and advanced safety features. The company’s strong sales further enhanced investor confidence.

Maruti Suzuki is India’s largest automobile manufacturer, specializing in compact and subcompact vehicles. Known for offering affordable, fuel-efficient, and reliable cars, the company dominates the Indian market and has a strong presence in global automotive markets.

Mahindra & Mahindra Ltd: 

On February 1, 2025, Mahindra & Mahindra Ltd opened at ₹2,990.00, up 3.15% from its previous close of ₹2,989.85. The stock reached a high of ₹3,098.95 (3.65%) and a low of ₹2,990.00. By 1:30 PM, it traded at ₹3,084.00, with a market cap of ₹3,83,131.23 crore.

Mahindra & Mahindra gained over 2%, benefiting from local battery manufacturing incentives. With a growing presence in the EV market and a strong 18% sales growth, the company is a key player in electric mobility.

Mahindra & Mahindra is a multinational conglomerate with a strong presence in the automotive sector, manufacturing SUVs, trucks, and electric vehicles. Known for its rugged and versatile vehicles, the company also focuses on sustainable mobility and agricultural solutions.

Mahindra & Mahindra has already made strides in EV manufacturing with its e2o and eVerito models, and the company’s outlook remains positive with increased government support for local production.

Also read : What are the development plans made by FM for Bihar in the union budget 2025?

Hybrid and EV Battery Support: Key Areas of Focus

The budget addresses challenges in the EV ecosystem, particularly the high cost of EV batteries, which account for up to 50% of the total vehicle cost. The government’s focus on reducing the GST on EV batteries is expected to alleviate some of these concerns.

In addition, the government’s proposal to lower the GST on hybrid vehicles, currently at 28%, aims to make them a viable transitional solution. This provides a bridge to full EV adoption, offering consumers an alternative while the ecosystem matures and infrastructure gaps are filled.

The focus on hybrid and electric mobility solutions has generated optimism among manufacturers and investors. The government’s strategy to support battery production and charging infrastructure will likely boost the EV and hybrid vehicle sectors, driving sustainable transportation growth.

• Conclusion: Positive Momentum for EV Stocks

The government’s focus on clean mobility and infrastructure, alongside incentives for local manufacturing and solar PV cells, is expected to sustain positive momentum in EV stocks. Analysts foresee growth in the EV market, with India advancing as a global leader in electric vehicle adoption, supported by strong budget initiatives.

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.