Disclaimer: We may earn a commission if you make any purchase by clicking our links. Please see our detailed guide here.

Follow us on:

Google News
Whatsapp

India’s OEMs accelerating shift towards EVs: HDFC Securities

IANS
IANS
Meet the voice behind Indo-Asian News Service (IANS), a storyteller navigating the currents of global events with precision and depth. Crafting narratives that bridge cultures, IANS brings you the pulse of the world in every word

Join the Opinion Leaders Network

Join the Techgenyz Opinion Leaders Network today and become part of a vibrant community of change-makers. Together, we can create a brighter future by shaping opinions, driving conversations, and transforming ideas into reality.

India’s automobile OEMs are accelerating their shift towards EVs by investing in startups and enhancing collaborations, HDFC Securities said.

“Along with developing electric products in-house, OEMs are open to collaborations, to reduce the speed-to-market as well as maintain capital efficiency,” HDFC Securities said in a report.

“Part suppliers are attempting to be segment agnostic, developing components for ICE, hybrid and EV products.”

Further, the report cited that other OEMs are adopting different methods towards electrification such as investing in startups and ramping up production of EVs in their portfolios.

Besides, it said that passenger vehicle OEMs such as Maruti are expected to introduce hybrid models, which will enable the company to transition towards EVs in the medium term (FY25-30).

“However, as we look further ahead i.e. beyond 2030, the outlook becomes cloudy as the longer-term threat from BEVs and the resultant competitive dynamics will impact the traditional business models in different manners.”

Based on analysis, the report said that terminal growth assumptions for PV OEMs will be at risk.

“For passenger cars, the early adoption of EV technology will be limited, in our view, due to multiple constraints including lengthy charging times, high capital costs, as well as range anxiety concerns in the small car segment.”

“Further, OEMs are divided on the technology road map as mass-market OEMs are promoting hybrids alongside EVs.”

It added that ‘2W’ segment is likely to witness a more near-term adoption from EVs as startups have aggressive ramp-up plans.

“The threat from EVs could emerge earlier i.e., over the next 3-5 years itself. Thus, the second stage DCF assumptions will be at risk for the incumbents.”

“Based on our sensitivity analysis of Hero Motocorp, if we assume lower growth rates from the second stage onwards, the impact on the value will be between 15-25 percent.”

Join 10,000+ Fellow Readers

Get Techgenyz’s roundup delivered to your inbox curated with the most important for you that keeps you updated about the future tech, mobile, space, gaming, business and more.

Recomended

Partner With Us

Digital advertising offers a way for your business to reach out and make much-needed connections with your audience in a meaningful way. Advertising on Techgenyz will help you build brand awareness, increase website traffic, generate qualified leads, and grow your business.

Power Your Business

Solutions you need to super charge your business and drive growth

More from this topic