Bullish for Auto OEMs: India's EV Capex to Exceed ₹24,000 Cr by FY28

Indian passenger vehicle manufacturers are set to invest over ₹24,000 crore into electric vehicles (EVs) between FY27 and FY28, as per CRISIL Ratings. This substantial capital expenditure, forming a significant portion of their total ₹60,000 crore capex, is aimed at expanding EV portfolios, localizing supply chains, and boosting production capacity.

This news signals a strong commitment from Indian automakers towards electrification, indicating that the EV transition is accelerating beyond initial expectations. For traders, it highlights a clear growth trajectory for the EV ecosystem in India, suggesting sustained investment and potential for market share shifts within the automotive sector.

This development is highly positive for major Indian auto OEMs like TATAMOTORS and M&M, which are aggressively pursuing EV strategies. Auto ancillary companies such as SONACOMS and MOTHERSUMI, supplying critical EV components, are also expected to see increased order books and revenue growth. Even traditional players like MARUTI will likely benefit from the overall market expansion as they ramp up their EV offerings.

Traders should monitor quarterly capex announcements and EV sales figures from leading auto companies for confirmation of this trend. Watch for government policy support for EV manufacturing and infrastructure, as well as any new partnerships or technological advancements that could further accelerate EV adoption. Key resistance levels for EV-focused stocks should be observed for potential breakouts.

• •Indian passenger vehicle makers to invest over Rs 24,000 crore in EVs.
• •This EV capex is part of a larger Rs 60,000 crore total capex across FY27 and FY28.
• •Investments will focus on expanding EV portfolios, localising supply chains, and boosting production capacity.
• •CRISIL Ratings provided the projection.
• •Risk flag: Slower-than-expected EV adoption due to charging infrastructure or cost concerns.