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Introduction Electric vehicle segment in India is considered as the next big thing and much valuable stock picks for wealth creation can be found in this segment. Crude oil is a limited resource. According to estimates the world is likely to run out of crude oil completely by the year 2040. That’s why there is a huge potential for vehicles running on electricity in not just India but world over. Though still in a nascent stage, the electric vehicle segment in India has huge growth potential and is projected to reach $707.4 million by 2025. Government schemes and subsidies have helped immensely in the growth of the market. But many infrastructure challenges remain like the lack of adequate charging stations and high initial cost of buying electric vehicles.
Top Stock Picks in the Electric Vehicles Segment • Manufacturers of lithium-ion batteries - Companies engaged in the production of lithium-ion battery business in India can be considered as top stock picks for wealth creation. It is a very niche segment with very few companies in India currently having the expertise and capability to produce lithium-ion battery which is one of the most important components of an electric vehicle. Batteries in electric vehicles need to be replaced at regular intervals and which means assured repeat business for companies in this field.
Manufacturers of anodes used in lithium-ion batteries - With the demand of lithium-ion batteries increasing, the demand for anode materials used in making lithium-ion batteries will also rise. There are very few companies in this specialized segment which manufacture anode materials for lithium-ion batteries making them top stock picks.
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