EV stocks jump up to 7% after Modi urges fuel cuts in 2026

EV shares rise after PM’s appeal

Shares of electric vehicle makers were in focus on Monday after Prime Minister Narendra Modi urged citizens to cut petrol and diesel usage and increase the use of electric vehicles. Stocks of Ola Electric Mobility, Ather Energy, JBM Auto and Olectra Greentech moved higher in early trade, with JBM Auto leading the gains. The move followed Modi’s remarks at a rally in Telangana, where he connected fuel conservation with saving foreign exchange. The comments came amid the ongoing West Asia crisis, which has been cited as a risk to the currency and the current account deficit. Investors appeared to rotate into EV-linked names on expectations that the policy narrative could support adoption. Market participants also pointed to broader crude price volatility as an additional tailwind for EV sentiment.

What Prime Minister Modi said in Telangana

In his address, Modi asked people to use petrol, gas, diesel and similar resources “with restraint” and avoid unnecessary consumption. He said imported petroleum products should be used only when needed. According to his remarks, reducing such usage can save foreign exchange and help limit the adverse impact of war-like conditions. He also urged citizens to save foreign exchange “by any means” during the crisis environment. Alongside fuel, he referenced other spending decisions such as travelling abroad and deferring gold purchases for over a year. The thrust of the message was conservation, reduced dependence on imports, and limiting pressure on external balances.

Practical steps suggested to reduce fuel use

Modi listed several ways to cut fuel consumption that touched daily commuting and logistics. He suggested using metro rail services in cities, and using carpooling for travel. He asked citizens to increase the use of electric vehicles as one of the options to reduce dependence on petrol and diesel. For parcel movement, he suggested using railway services. And where possible, he spoke about working from home as another measure to cut fuel burn. The mix of proposals covered individual behaviour, public transport choices, and freight decisions.

How the market reacted: EV stocks lead the gainers

EV stocks stood out among the day’s gainers after the remarks. In the electric two-wheeler segment, Ola Electric Mobility opened about 1% higher at around ₹36.5 and later touched an intraday high of ₹37.73, with a reported rise of about 4% during the session. Ather Energy rose more than 5% and hit an intraday high of ₹966, with another trade snapshot showing it up over 3.4% at around ₹950 on the NSE. In commercial EVs, Olectra Greentech rose and hit an intraday high of ₹1,379 in one snapshot, while overall intraday gains were cited at around 4%. JBM Auto was reported as the top gainer, with moves cited between about 5% to 7%, and an intraday high around ₹688 on the NSE.

Key data points from the day

The rally was not limited to price movement, as some counters also saw heavier activity. In one update, JBM Auto saw more than 91 lakh shares trade by 11:00 am, compared with a 20-day average of just under 90,000 shares. Olectra Greentech also saw over 12 lakh shares trade by 11:00 am, above a 20-day average of about 1.2 lakh shares. JBM’s rise was described as its second consecutive day of gains and its biggest single-day rise since September 2025. Olectra’s move was described as its biggest single-day rise since July 2025. Ather Energy was also noted as being positive in seven out of the last eight trading sessions.

Snapshot table: price action in EV names

Macro backdrop: forex, crude and conflict risk

The rally was framed around energy security and the foreign exchange impact of imported fuels. One segment of the coverage noted that India imports around 85% of its crude oil needs, keeping markets sensitive to oil price shocks. Another update stated international oil prices have moved 43% higher amid disruptions tied to the Gulf region. It also referenced that an Iran war started on Feb. 28 and has since hampered oil production at key producing countries. Against that backdrop, higher petrol and diesel costs can make electric options more attractive on running costs. The market response suggested that investors were placing weight on the direction of travel rather than a single policy announcement.

Policy context: Delhi’s draft EV Policy 2026-2030

Separate from the Telangana remarks, EV stocks have also reacted in recent weeks to state-level policy signals. On April 13, EV-focused stocks moved higher after the Delhi government released a draft Electric Vehicle Policy for 2026-2030 for public consultation. The draft proposed stopping registration of new petrol two-wheelers from April 2028 and new CNG three-wheelers from January 2027. It also proposed a full waiver on road tax for EVs and a 50% road tax concession for hybrid vehicles priced up to ₹30 lakh. Delhi Chief Minister Rekha Gupta said the draft policy is aimed at building a “clean, accessible and sustainable transport system” through incentives, mandates and infrastructure development. The consultation window was reported to be open until May 10.

Incentives and supply-side support mentioned in coverage

Apart from draft policies, the broader incentive framework was also cited as supportive for the sector. The coverage referred to purchase subsidies under the FAME scheme (Faster Adoption and Manufacturing of Electric Vehicles) and a 5% GST rate for electric vehicles. It also referenced production-linked incentives that reward incremental output across EVs, auto components and advanced chemistry cell batteries. Central and state governments were also noted as providing capital subsidies for EV manufacturing and charging infrastructure. These measures are intended to lower costs and expand supply over time.

What investors tracked beyond EVs

The same coverage noted a divergence across sectors, with gold and jewellery stocks described as top losers in one snapshot, falling as much as 10%. That relative move was linked to Modi’s request to defer gold purchases for over a year as part of conserving foreign exchange. The contrast highlighted how a macro message can shift near-term positioning across themes such as clean mobility and discretionary consumption. For EV counters, the day’s move combined policy messaging, fuel-cost sensitivity, and the ongoing narrative around import dependence.

Conclusion

EV-linked stocks gained on Monday as the Prime Minister’s public appeal focused attention on reducing petrol and diesel consumption and increasing EV usage amid the West Asia crisis. JBM Auto led the pack, while Ola Electric, Ather Energy and Olectra Greentech also posted notable intraday gains alongside active trading. Investors will watch for further policy follow-through, including consultations and updates around state-level EV frameworks such as Delhi’s draft EV Policy 2026-2030.