As the battle for electric vehicles heat up, which company can win the electric vehicle (EV) race? Analysts at Bernstein weigh in their views on which company can reach the finish line.

What The Analysts Say: Bernstein says the EV industry generates $1.3 billion (around ₹10,861 crore) annual revenue and without incentives makes $300 million to $400 million (₹2,506 crore to ₹3,342 crore) of EBIT loss. 

The research firm observes that EV industry is still not relevant without incentives and to compete with internal combustion engine (ICE) sector it needs "intense focus, scale and continued cost downs". The brokerage says it won't be easy for multiple startups to succeed and one player can become mainstream. 

See Also: Why Does Ola Electric Lead EV Market In Volume And Margins? Bernstein Answers

Top Picks: Bernstein prefers Bajaj Auto as it is aggressive in gaining volumes and has enough ICE margin to buffer its losses. TVS Motors is also doing well by showing its pricing power as it sells a weaker specs vehicle at higher prices and defending its scooter share. 

Bernstein points out that Ola Electric is showing promise of relevance by leading in volumes and profitability through its premium models.

While Ather is ranked fourth, reports hefty losses even at high prices and does not have the benefit of production-linked incentives (PLI). The research firm sees only one startup being relevant going forward.

The brokerage firm has a “outperform” call on Bajaj Auto and gave a target price of ₹13,600. For TVS it has a “market perform” call with a target price of ₹2,050.

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