Electric vehicle (EV) stocks such as JBM Auto, Ola Electric Mobility, Ather Energy and Olectra Greentech surged up to 7% on Monday after Prime Minister Narendra Modi urged citizens to conserve fuel and increase the use of public transportation amid the ongoing West Asia crisis.
JBM Auto share price jumped as much as 7.26%, Ola Electric shares surged 4.49%, Ather Energy stock price spiked 5.6%, while Olectra Greentech shares rallied 4.9%.
“It is time for us to use petrol, diesel and gas with great care,” PM Modi said on Sunday while inaugurating projects in Hyderabad, Telangana. “We must make, efforts to use only as much as is needed to save foreign currency and reduce the adverse effects of the war,” he added.
Along with this, PM Modi made seven big appeals, such as working from home, online meetings and limiting travel to cushion the consumer from soaring oil prices.
Modi also urged citizens to help conserve foreign exchange reserves by avoiding unnecessary overseas travel, vacations and weddings, opting for domestic tourism instead, and refraining from non-essential gold purchases for a year.
The sharp spike in crude oil prices amid the escalating US-Iran war in the Middle East has intensified concerns over inflationary pressures and a widening of India’s import bill, which could potentially lead to a higher current account deficit (CAD).
A 10% increase in crude prices could push up inflation by 50 basis points and pare growth by 15 basis points, the Reserve Bank of India (RBI) earlier said in a Monetary Policy Report.
Crude oil prices are trading above $100 a barrel as the Strait of Hormuz, which carries about 20% of the world’s crude, remains largely closed amid the West Asia conflict. Brent crude futures jumped 4.22% to $105.56 a barrel, while US West Texas Intermediate was at $100.00 a barrel, up 4.80%.
Market analysts believe EV stocks could emerge as key beneficiaries if consumers increasingly shift away from petrol and diesel-powered vehicles in response to elevated fuel costs and government-led conservation measures.
The rally in electric vehicle stocks reflects growing investor optimism that sustained high crude oil prices and fuel conservation measures could accelerate India’s transition towards cleaner mobility solutions.
With concerns over inflation, rising import costs and pressure on the current account deficit mounting, the ongoing geopolitical tensions may further strengthen the long-term outlook for EV manufacturers and public transportation-linked companies.
