Globally, electric vehicle (EV) sales have hit a saturation point and hence sales have been witnessing a decline, especially in the batterypowered passenger vehicle segment, over the past year or so. However, the Indian market could paint a different picture for itself.
India’s electric car market is poised for substantial growth, with sales penetration expected to exceed 7% by FY28, according to a new report by CareEdge Advisory. This forecast hinges on the timely resolution of rare earth element (REE) supply disruptions and the launch of new EV models. The report highlights that India’s electric car sales have grown significantly—from just over 5,000 units in FY21 to more than 1.07 lakh units in FY25.
Tanvi Shah, Senior Director and Head of CareEdge Advisory & Research, remarked, “With a robust pipeline of model launches, expanding EV charging infrastructure, and battery localisation under the PLI scheme, India is wellpositioned to accelerate EV adoption.” The report also pointed out that although electric fourwheelers currently form a smaller portion of overall EV sales—primarily dominated by electric two and threewheelers—the segment is now entering a rapid growth phase.
A critical factor in India’s EV transformation is the growth of public charging infrastructure. Once considered a major obstacle, the availability of EV charging stations has seen remarkable progress. The number of public EV chargers grew from 5,151 in CY22 to over 26,000 by early FY25, marking a significant leap toward accessibility.
Governmentled initiatives like the FAME III policy, the ProductionLinked Incentive (PLI) scheme for advanced chemistry cell (ACC) batteries, and exemptions on basic customs duty for essential battery materials such as cobalt, graphite, and lithiumion waste are further expected to strengthen the domestic EV supply chain. These policies aim to reduce production costs, boost localisation, and ensure longterm supply chain resilience.
As both public and private stakeholders continue to push forward, India’s electric vehicle landscape is entering a promising phase of transformation and scalability.
With inputs from PTI
