Summary:

CareEdge Advisory predicts that India's electric vehicle (EV) sales penetration would approach 7% by FY28, spurred by new model introductions and the resolution of rare earth supply difficulties. EV sales increased from just over 5,000 units in FY21 to 1.07 lakh in FY25. Senior Director Tanvi Shah emphasised India's readiness for speedier EV adoption, which is aided by model pipelines, PLI-backed battery localisation, and the expansion of charging infrastructure, all of which are crucial to long-term growth.

Electric four-wheelers, while now a modest fraction of EV sales, are expected to rise rapidly due to significant state backing and private investment. Charging infrastructure has grown dramatically, with public EV stations increasing from 5,151 in CY22 to more than 26,000 by early FY25. Government measures such as FAME III, the PLI program for ACC batteries, and tax exemptions on essential minerals are intended to reduce costs and boost India's electric mobility ecosystem.

Source: IBEF

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