This month has given investors, who were upset about all the red in their portfolios, some relief. The Nifty 50 snapped its longest losing streak since 1996. The benchmark index is up 6.9% in March and has clawed back all its 2025 losses. The big question is whether we are witnessing the start of a real market recovery or just a temporary bounce.

Siddhartha Khemka, Research Head at Motilal Oswal Financial Services, says that foreign institutional investors (FIIs) are again shaping market sentiment. "What is driving the domestic market is the return of FII inflows, after a prolonged selling period. Positive global cues after the US President hinted about flexibility in reciprocal tariffs have also helped," he noted.

Just as FIIs are changing the narrative in the stock market, another industry is seeing a significant transformation—the electric vehicle market. With a record number of EVs set to launch in 2025 and competition heating up, how will carmakers steer through?

In this week’s Analyticks,

• The EV battle heats up: Carmakers vie with new models at affordable price points
• Screener: Auto stocks with rising momentum, and Forecaster predicting revenue and EPS growth in Q4FY25

Is the Indian EV industry ready for supercharged growth?

The Indian government had set a goal of having 30% of all passenger vehicles be electric by 2030. However, as of 2024, electric vehicles (EVs) make up only 2.4% of total sales. This has increased by just 0.2% every year over the past three years. Honestly, you are more likely to catch birds while fishing than hit 30% by 2030.

Looking at more realistic numbers instead, analysts project that the EV market share will double from 2% to 4% in 2025. 2025 could finally be the year of the EV. Car manufacturers are launching new models, prices are becoming more competitive, and charging stations are expanding rapidly, all of which may change the mind of an Indian consumer who has so far, stuck with the gas guzzlers. 

If you plan is to buy an EV this year, you may feel like a kid in a candy store. Of the 28 new car models set to launch in 2025, 18 are EVs. This is a major jump from the four to five EV models launched annually in the past two years. It hints at a tipping point.

Car makers target the hot-selling Rs 10-30 lakh EV segment

Better late than never is Maruti Suzuki's approach, which will finally enter the EV market this year with the e-Vitara. Tata Motors, Maruti Suzuki, and Mahindra are also gearing up, while foreign automakers are introducing new models across different price segments.

India isn’t immune to the global rise of Chinese EVs. Two Chinese brands, BYD and MG Motors, already sell EVs in India. And MG Motors, which manufactures through a local partnership with the JSW Group, is shaking up the market.

Tata Motors’ EV dominance is fading

Tata Motors had a head start in India's EV market. In October 2021, it had announced a $2 billion investment in its EV business, and its stock surged 21% in a single day. Fast-forward to 2025, and the picture looks very different. Its EV sales have been struggling, with nine out of the last eleven months showing declines compared to the previous year. In February 2025, Tata’s EV sales fell 23% YoY, and its stock is down 27% over the year.

Tata’s EV market share has plunged from 73% in 2023 to 42% in February 2025. The biggest threat? MG Motors.

MG Motors' market share is rising fast 

MG has disrupted the market with its Windsor EV, which introduced a Battery-as-a-Service (BaaS) model, where you pay for battery usage at Rs 3.5 per km. This more affordable approach has struck a chord with buyers, pushing MG’s market share from 11% in 2023 to 36.5% by early 2025.

SUVs now make up 56% of the market, and while Tata Motors offers EVs in this segment, competitors like Mahindra are competing more effectively in power and design (user discussions on the Tata Nexon online have been quite unflattering).

Upcoming EV launches from Maruti and Mahindra’s aggressive push in the same price range could also put more pressure on Tata Motors' market share.

No EV story is complete of course, without mentioning the heavyweights – BYD and Tesla. BYD imports all its cars from China, and is limited to 2,500 units per model annually unless it commits to local manufacturing. Meanwhile, Tesla is hiring in Mumbai, and hinting at an entry, though high import duties and pricing challenges may limit its impact.

Charging infrastructure in India is the biggest hurdle for buying EVs

For many potential EV buyers, charging infrastructure remains the biggest concern. “Range anxiety” is holding back mass adoption in India.

India currently has just one public charger for every 135 EVs—far below the global average of one charger per six to twenty EVs. This is despite the country doubling its charging stations in FY24. 

Over the past five years, more than $450 million has been invested in this sector, with companies like Charge Zone, Tata Power and Statiq leading the charge.

Automakers are also stepping in. Maruti plans to install fast-charging stations at its dealerships every five to ten kilometres in the top 100 cities before launching its first EV. 

Maruti also plans to establish over 1,500 EV-enabled service workshops in more than 1,000 cities. Partho Banerjee, senior executive officer of marketing and sales at Maruti Suzuki, said, “When we begin selling the e-Vitara, the ecosystem will be ready. Anyone driving our EV will have no concerns. Range anxiety is a genuine issue. If we resolve these challenges, EV penetration will grow significantly.” Banerjee expects EV sales to grow tenfold in the next six years. 

A key player like Maruti prioritizing charging infrastructure helps all buyers, since there is inter-compatibility between charging stations. On February 13, Tata Motors also announced plans to double India's EV charging points by 2027. Fixing the charging infrastructure bottleneck could accelerate EV adoption nationwide.

Screener: Auto stocks with rising momentum, with Forecaster estimating revenue and EPS growth in Q4FY25

Forecaster estimates auto parts & 2/3-wheeler revenue to grow in Q4FY25

As we enter the last week of Q4FY25, we look at the auto stocks where Trendlyne’s Forecaster estimates a YoY growth in revenue during the quarter. This screener shows automobiles & auto components stocks with increasing Trendlyne momentum score MoM, where Forecaster expects a YoY growth in revenue and EPS in Q4FY25.

Major stocks in the screener are UNO Minda, Schaeffler India, Eicher Motors, Amara Raja Energy, TVS Motor, Sansera Engineering, and ZF Commercial. 

UNO Minda shows up in the screener after its Trendlyne momentum score jumped 18 points MoM to 47.8. Trendlyne’s Forecaster expects this auto parts & equipment company’s revenue and EPS to grow by 19.2% YoY and 6.8% YoY in Q4FY25. Analysts at KR Choksey believe that despite a slowdown in commercial vehicle demand, its focus on innovation, capacity expansion, product diversification, and investments in emerging technologies positions it for long-term revenue growth.

Eicher Motors’ Trendlyne momentum score increased by 13.6 points MoM to 64.5. Forecaster expects this ?-wheeler stock’s revenue and EPS to grow by 16.3% YoY and 13.8% YoY, respectively, in Q4FY25. Axis Direct expects the company’s revenue to increase due to strong domestic demand, expansions in Bangladesh, Brazil & Thailand, and new product launches. 

You can find some popular screeners here.