ndia now boasts its first stock exchange index dedicated to tracking the performance of companies within the electric vehicle (EV) ecosystem. On Thursday, NSE Indices Ltd, a subsidiary of the National Stock Exchange, unveiled the Nifty EV & New Age Automotive Index. This thematic index will monitor companies engaged in the development and production of electric vehicles, hybrid technology, hydrogen fuel vehicles, and other advanced automotive technologies.
Eligibility and Constituents
To be included in the Nifty EV & New Age Automotive Index, companies must be part of the broader Nifty 500 index and actively involved in the production or supply of electric or advanced automotive vehicles, components, batteries, raw materials, and related technologies. Currently, the index tracks 33 stocks, including prominent names such as Tata Motors, Maruti Suzuki, Mahindra, Bajaj Auto, Exide Industries, Bosch, Samvardhana Motherson International, Eicher Motors, CG Power and Industrial Solutions, and Himadri Speciality Chemical.
Key Details
- Base Date: April 2, 2018
- Base Value: 1,000
- Reconstitution: Semi-annually
- Rebalancing: Quarterly
The launch of this index provides a benchmark for asset managers and could serve as a reference for passive funds, such as Exchange Traded Funds (ETFs), index funds, and other structured products.
Market Context and Growth
The introduction of the Nifty EV & New Age Automotive Index aligns with the Indian government’s push for greater adoption of battery-powered and alternative fuel vehicles. In the fiscal year 2023-24, approximately 1.6 million electric vehicles were sold in India. This figure includes 944,126 two-wheelers, 632,485 three-wheelers, 90,432 four-wheelers, and 3,693 buses, as reported by the Vahan portal.
Industry Developments
Several key players in the EV industry are making significant moves. Ola Technologies, a major electric two-wheeler manufacturer, is expected to go public soon. Ather Energy and Hyundai Motor India are also reportedly preparing for initial public offerings. Additionally, Tata Motors has announced a restructuring plan that will divide the company into two publicly traded entities: one for commercial vehicles and another for passenger vehicles, which will include its EV business and Jaguar Land Rover.
CEO’s Perspective
Mukesh Agarwal, CEO of NSE Indices, highlighted the importance of the new index, stating that it will create investment opportunities for asset managers and provide investors with a vehicle to participate in the growing electric and advanced automotive market.
The launch of the Nifty EV & New Age Automotive Index marks a significant milestone in India’s financial and automotive sectors, reflecting the rapid advancements and increasing investments in electric and new-age vehicles.
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