Top Government-Backed EV Stocks in India to Watch in 2025 – Hidden Gems with Multibagger Potential:
India’s electric vehicle (EV) movement is no longer a
futuristic fantasy — it's a full-blown industrial revolution. With rising fuel
costs, climate imperatives, and rapid policy changes, the EV sector is being
supercharged by government support in 2025.
But while everyone is chasing big names like Tata Motors and
Mahindra, smart investors are quietly scooping up lesser-known,
government-backed stocks—the hidden gems poised to become multibaggers in the
next EV boom.
In this article, we uncover 5 actively listed, high-potential EV stocks, all with strong government linkages and growth momentum as of July 2025. These are not just bets — they’re backed by policy, public sector momentum, and disruptive tech.
Why Government-Backed EV Stocks Matter in 2025?
- FAME-II Scheme extended till 2026
- PLI (Production Linked Incentive) schemes worth 25,000 crore announced for EVs and ACC batteries
- PSUs like Indian Oil, BHEL, and BEL entering EV infra & battery manufacturing
- Mandatory EV adoption policies for public fleets across states
- Boost in charging infrastructure, EV buses, battery swaps, and lithium-ion cell localization
1. BHEL (Bharat Heavy
Electricals Ltd) – The Green PSU Powerhouse
Why it matters: BHEL has silently positioned itself as the
backbone of India’s EV charging ecosystem in 2025.
Key highlights:
- Manufacturing EV charging stations for Indian Oil and HPCL
- Working with ISRO on energy storage systems and battery packs
- Winning state contracts for public charging infra under FAME-II
July 2025 Price: 254rs
Market Cap: 66,000+ Cr
Multibagger Trigger: Green energy + EV convergence + strong
PSU order pipeline
Investors are now
viewing BHEL not just as a legacy PSU, but as a green energy innovator.
2. HBL Power Systems
– India’s Battery Tech Innovator
HBL is a mid-cap powerhouse in battery technology. Known for
defense-grade batteries, HBL is now building lithium-ion and solid-state
battery systems for EVs.
Why it's trending in
2025:
- Partnered with DRDO and Indian Railways on EV battery tech
- Commissioned a new plant for lithium battery packs in Telangana
- Received PLI approval under ACC Battery scheme
- Market Cap: 13,000+ Cr
Potential: One of
India’s few listed battery tech companies. Strong policy tailwinds, and rising
institutional interest.
3. Bharat Forge – The
EV Component Titan
Traditionally a forging company, Bharat Forge has now
emerged as a serious EV play via its arm Kalyani Powertrain Ltd.
2025 updates:
- Producing e-axles, electric motors, and chassis components for EVs
- Supplying parts to both domestic and global OEMs
- Recently bagged a 1,000 crore EV
component order from a leading German automaker
July 2025 Price: 1227rs
Market Cap: 55,000+ Cr
Edge: Government incentive under Auto PLI + export-led
growth + Make in India for EVs
4. Ashok Leyland (via
Switch Mobility) – Leading India’s EV Bus Race
Ashok Leyland’s EV arm, Switch Mobility, is playing a
pivotal role in public transport electrification.
Key wins in 2025:
- Delivered 2,500+ electric buses under state contracts
- Operating in Chennai, Mumbai, and Lucknow smart bus fleets
- Switch is preparing for a separate IPO in 2026
July 2025 Price:124.70 ( After
bonus Price)
Market Cap: 61,000+ Cr
Why It Matters: With urban mobility electrification
accelerating, Ashok Leyland is uniquely positioned with PSU contracts and green
subsidies.
5. Indian Oil
Corporation (IOC) – The Unseen EV Infrastructure Giant
IOC is no longer just a fuel company. In 2025, it is India's
largest EV charging infrastructure provider, with over 12,000 stations
nationwide.
2025 milestones:
- IOC plans to electrify 50% of its outlets by March 2026
- Partnered with BHEL and REIL for charging equipment
- Entered battery swapping and green hydrogen EV fueling
July 2025 Price: 152rs
Market Cap: 2.3 lakh crore
Moat: Strong PSU governance, deep pockets, and first-mover
advantage in EV infra
Related Read: Top PSU Stocks to Watch in 2025
Key Takeaways
✔️ These 5 stocks are listed,
government-linked, and active in EV infrastructure as of July 2025
✔️ They are not overhyped but are
building solid foundations with PSU orders and subsidies
✔️ Investors should look beyond
just vehicle makers to battery tech, charging infra, and components
✔️ Avoiding non-listed names
protects your credibility and boosts audience trust
Piyush Sharma is a long-term equity investor and founder of MultibaggerStockIdeas.com. With over 15 years of experience in Indian stock markets, he shares research-backed investment insights, personal lessons, and practical strategies for identifying multibagger stocks early.
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