Shares of Ola Electric Mobility Ltd., Exide Industries Ltd. and Amara Raja Batteries Ltd. rose on Saturday after the government announced a National Manufacturing Mission to support domestic manufacturing, including electric vehicle batteries, during the Union Budget 2025–26, presented by Finance Minister Nirmala Sitharaman.
In her Budget speech, Sitharaman said, "To further the Make in India policy, our government will set up a National Manufacturing Mission covering small, medium, and large industries. This mission will provide policy support, execution roadmaps, and a governance and monitoring framework for central ministries and states.
Given our commitment to climate-friendly development, the mission will support clean-tech manufacturing. This will aim to improve domestic value addition and build our ecosystem for solar PV cells, EV batteries, motors and controllers, electrolysers, wind turbines, high-voltage transmission equipment, and grid-scale batteries."
Following the announcement, stocks of EV and battery makers advanced:
Ola Electric surged as much as 8.02% to Rs 80.80 apiece as of 11:32 a.m.
Amara Raja Batteries climbed 5.73% to Rs 1,093.95 per share.
Exide Industries rose 2.14% to Rs 382.50 apiece.
Analyst Expectations
Morgan Stanley had anticipated that funding for EV infrastructure will remain a priority, with an emphasis on expanding charging networks and enhancing grid capabilities.
Macquarie had highlighted the government's potential outlay for the PM E-drive and Auto PLI schemes, which are seen as key to boosting the domestic manufacturing of EVs and crucial components.
CareEdge also suggested that a uniform GST rate on batteries, regardless of technology type, alongside tax incentives such as GST reductions for hybrid vehicles, could have been on the agenda.
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