Best EV Stocks in India for May 2025 Based on 5Y CAGR: JBM Auto, KPIT Tech, M&M and More

India’s Electric Vehicle (EV) industry is witnessing remarkable growth, driven by government incentives, increasing environmental awareness, and significant technological progress. The country has set ambitious targets to boost the share of EV sales: 30% for private cars, 70% for commercial vehicles, 40% for buses, and 80% for two-wheelers and three-wheelers by 2030. The Indian EV market is projected to grow at a compound annual growth rate (CAGR) of 28.52%, reaching a value of US$ 18.319 billion by 2029, up from US$ 5.22 billion in 2024. In this blog, we will explore the best EV stocks for May 2025 based on different parameters.

Best EV Stocks for May 2025

Note: The stocks mentioned above have been selected and sorted based on 5Y CAGR as of May 05, 2024

Overview of 5 Best EV Stocks Based on 5Y CAGR

JBM Auto Ltd

Incorporated in 1983, JBM Auto Ltd is engaged in the manufacturing and selling of sheet metal components, tools, dies & moulds. It is the market leader in e-buses. The Board of JBM Auto is likely to consider and recommend a dividend at the upcoming Board meeting on May 6, 2025.

Key Metrics:

• ROE: 15.9%
• ROCE: 14.4%

KPIT Technologies Ltd

KPIT is a global technology company with software solutions that will help mobility leapfrog towards an autonomous, clean, smart and connected future. KPIT Technologies has announced a collaboration with Mercedes-Benz Research and Development India (MBRDI) to accelerate the development and realisation of Software-Defined Vehicles (SDVs).

Key Metrics:

• ROE: 33.2%
• ROCE: 40.9%

M&M Ltd 

Mahindra & Mahindra (M&M) Ltd is one of the most diversified automobile companies in India. Mahindra’s Auto and Farm segments continued to demonstrate robust performance. SUV volumes grew by 20%, contributing to a revenue market share increase of 210 basis points, reaching 22.5%. Tractor volumes also rose by 12%, with the segment securing a market share of 43.3%, up by 170 basis points. .

Key Metrics:

• ROE: 18%
• ROCE: 14.1%

Tata Motors Ltd

Tata Motors Group is a leading global automobile manufacturer, it offers a wide and diverse portfolio of cars, SUVs, trucks, buses and defence vehicles to the world. Tata Motors Limited reported total sales of 72,753 units in the domestic and international markets for April 2025, reflecting a decline compared to 77,521 units sold in April 2024.

Key Metrics:

• ROE: 49.4%
• ROCE: 20.1%

Ashok Leyland Ltd

Ashok Leyland is the flagship Company of the Hinduja group, having a long-standing presence in the domestic medium and heavy commercial vehicle (M&HCV) segment. In April 2025, Ashok Leyland reported total vehicle sales (domestic and exports combined) of 13,421 units, registering a 6% decline compared to 14,271 units in April 2024. Sales in the Medium and Heavy Commercial Vehicle (M&HCV) segment were impacted, with truck volumes falling 9% to 6,119 units and bus volumes dropping 22% to 1,841 units. 

Key Metrics:

• ROE: 28.4%
• ROCE: 15.0%

Factors to Consider Before Investing in EV Stock

There are several important factors to consider before investing in electric vehicle (EV) stocks,

1. Market Growth and Demand: Assess the potential expansion of the EV market, taking into consideration government policies, incentives, and the growing demand for eco-friendly transportation. Pay attention to trends in EV adoption and the development of supporting infrastructure, such as charging stations.
2. Company Financials: Review the financial stability of the EV companies you are interested in, including their revenue growth, profitability, debt, and cash flow. A solid financial base can help a company navigate market fluctuations.
3. Technology and Innovation: Look at the company’s commitment to innovation, especially in areas like battery technology, autonomous driving, or EV-related software. Companies leading in technological advancements could have a competitive advantage.
4. Government Regulations and Support: Investigate the regulatory environment for electric vehicles in the country where the company operates. Government incentives, subsidies, and policies aimed at reducing emissions can play a crucial role in boosting EV company profits.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.