NSE Indices launches India’s First Electric Vehicle Index

  • 05 Jun 2024
  • Read 6 mins read

The Nifty EV and New Age Automotive Index tracks companies involved in the EV ecosystem and new age automotive technology development. 

The new index is poised to serve as a benchmark for asset managers and a reference index for passive funds like ETFs, index funds, and structured products.

In an epic development toward embracing the future of mobility, the National Stock Exchange (NSE) Indices has unveiled India’s foremost Electric Vehicle (EV) Index. This ground-breaking index marks a significant milestone in the country's journey toward sustainable transportation solutions and underscores the increasing prominence of electric vehicles in the automotive landscape.

As the demand for electric vehicles continues to surge globally, India stands at the cliff of a transformative shift in the automotive industry. With an increasing emphasis on environmental sustainability and the need to reduce carbon emissions, electric vehicles have emerged as a gripping alternative to traditional internal combustion engine vehicles.

The NSE Indices' Electric Vehicle Index serves as a comprehensive benchmark designed to track the performance of companies at the forefront of the electric vehicle revolution in India. By offering investors with valuable insights into the growth and trail of the electric vehicle market, this index enables stakeholders to make informed investment decisions in this growing automobile sector.

One of the key objectives of the Electric Vehicle Index is to highlight the dynamism and innovation of new-age automakers who are driving the electric vehicle revolution in India. From established players to nimble start-ups, the index encompasses a diverse range of companies that are leading the development and adoption of electric vehicles across various segments.

Furthermore, the launch of India’s premier Electric Vehicle Index emphasizes the NSE Indices' commitment to fostering transparency, liquidity, and investor confidence in emerging sectors with immense growth potential. By providing a platform for investors to participate in the electric vehicle ecosystem, the index catalyzes investment flows into this critical sector, thereby accelerating the transition towards sustainable mobility solutions.

The inclusion of India’s first Electric Vehicle Index in NSE Indices' portfolio restates the exchange's role as a catalyst for innovation and progress in the financial markets. As electric vehicles continue to reshape the automotive landscape, this index serves as a gauge of the sector's evolution and a testament to India's commitment to embracing clean, green transportation solutions.

Mr. Mukesh Agarwal, CEO, NSE Indices, quoted: “The Nifty EV & New Age Automotive India’s first ever Electric Vehicle Index aligns with NSE’s vision to provide innovative indices in line with market trends. The launch of the Nifty EV & New Age Automotive index will facilitate the creation of products which will create opportunities for asset managers to invest in the Electric vehicle and new age automotive market thereby providing an investment vehicle to investors.”

The index has been established with April 2, 2018, as its base date and a base value of 1000. Its semi-annual reconstitution and quarterly rebalancing will ensure its accuracy and relevance. Designed to serve as a benchmark for asset managers, this index is poised to become a prominent reference for passive investment vehicles such as Exchange Traded Funds (ETFs), index funds, and structured products. 

The government has consistently taken a leading role in formulating policies aimed at promoting the adoption of electric vehicles (EVs) to facilitate the domestic manufacturing of cutting-edge EV technology. These measures are designed to attract investments from global EV manufacturers, thereby bolstering the Make in India initiative. 

Presently, the National Stock Exchange (NSE) manages a portfolio of 17 thematic indices, comprising the likes of Nifty CommoditiesNifty India ConsumptionNifty CPSENifty Energy, and Nifty Infrastructure. Alongside these thematic indices, the NSE administers a range of Broad Market Indices, including Nifty, Nifty Next 50, and Nifty 100, among others. Additionally, the NSE oversees 15 sectoral indices such as Nifty BankNifty IT, and Nifty Auto.

The launch of India’s inaugural Electric Vehicle Index by NSE Indices marks a turning point in the journey towards a cleaner, greener future. By providing investors with a dedicated platform to track and invest in the electric vehicle sector, this index paves the way for sustainable growth and development in the automotive industry.