There is no doubt that the world has passed the point of no return on electric vehicles.
Even in Australia, which was formerly notorious for its lack of government and public support for EVs, half of consumers are now interested in going electric for their next purchase.
But on the ASX, other than resources companies that extract minerals used to make batteries, it's slim pickings if you want to invest in EV shares.
To find opportunities, one might need to think laterally.
Here is one ASX share to buy that fits that bill.
Image source: Getty Images
What has employee services got to do with electric cars?
The team at Celeste Funds Management holds shares in Smartgroup Corporation Ltd (ASX: SIQ) and enjoyed an 8% ride upwards last month.
In fact, the stock has rocketed a phenomenal 50% so far this year.
The analysts attributed the rise to a quarterly update indicating "positive momentum with growing electric vehicle demand".
Smartgroup Corporation, headquartered in Sydney, provides employee management services.
So what has this to do with electric vehicles?
The answer is that two of the services it offers are novated leasing and fleet management.
This business is booming after the federal government this year introduced EV adoption incentives and fuel efficiency standards.
And Smartgroup is already well placed to cash in.
"EVs accounted for +20% of total novated leasing quotes in Q1, up from 15% in 4Q22 and <1% a year earlier (both direct and corporate customers)," read the Celeste memo to clients.
"The Q1 NPATA run rate was in line with 2H22, a particularly strong result given the loss of major client DET Victoria last year and ongoing automotive supply constraints."
Celeste isn't the only fan
Smartgroup shares are popular with professional investors at the moment.
According to CMC Markets, five of the eight analysts currently covering the stock recommend it as a buy.
Back in March, Contact Asset Management declared its bullishness on Smartgroup Corporation.
"Contact said that growth in electric vehicles is an 'unappreciated' additional boost to activity, as well as benefits from the recent investments in digital platforms," reported The Motley Fool's Tristan Harrison.
"Contact pointed out that the better-than-expected dividend highlights management's confidence in the outlook. In the fund manager's opinion, a forward-looking price/earnings ratio of between 11 to 12 suggests 'excellent value'."
