The Nifty EV & New Age Automotive Index will track companies in the electric vehicle ecosystem and those developing new-age automotive technologies.
India has introduced its first stock exchange index to track the performance of companies within the electric vehicle ecosystem. On Thursday, NSE Indices Ltd, the index services subsidiary of the National Stock Exchange, launched the Nifty EV & New Age Automotive index.
This thematic index will monitor the performance of companies involved in the electric ecosystem, including those developing electric vehicles and new-age automotive technologies such as hybrid and hydrogen fuel-based vehicles.
Eligibility for inclusion in this index requires companies to be part of the broader Nifty 500 index and involved in the production and supply of electric or new-age automotive vehicles, batteries, components, raw materials, and related technology.
The index aims to serve as a benchmark for asset managers and a reference for passive funds in Exchange Traded Funds (ETFs), index funds, and structured products. The base date for the index is April 2, 2018, with a base value of 1000. It will be reconstituted semi-annually and rebalanced quarterly.
Currently, the index comprises 33 stocks, with major constituents by weightage including Bajaj Auto, Tata Motors Ltd, Maruti Suzuki India Ltd, Mahindra & Mahindra Ltd, Exide Industries Ltd, Bosch Ltd, Samvardhana Motherson International Ltd, Eicher Motors Ltd, CG Power and Industrial Solutions Ltd, and Himadri Speciality Chemical Ltd.
The launch of the Nifty EV & New Age Automotive index is expected to facilitate the creation of investment products, offering asset managers opportunities to invest in the electric vehicle and new-age automotive market. This provides investors with a dedicated investment vehicle, said NSE Indices CEO Mukesh Agarwal.
This new index launch coincides with the Indian government’s push for the adoption of battery-powered and alternative fuel vehicles. Electric vehicle adoption in India is rapidly increasing, particularly in the two and three-wheeler segments. According to the Vahan portal, approximately 1.6 million electric vehicles were sold in India during 2023-24, including 944,126 two-wheelers, 632,485 three-wheelers, 90,432 four-wheelers, and 3,693 buses.
Electric two-wheeler major Ola Technologies is expected to list its shares on the stock exchanges soon, while Ather Energy and Hyundai Motor India are also reportedly planning initial public offerings. Additionally, Tata Motors has announced a significant restructuring plan to demerge into two separate publicly traded companies—one for commercial vehicles and the other for passenger vehicles, which will include its electric vehicle business and Jaguar Land Rover.
