Blitz Bureau
NEW DELHI: The electric car sales penetration in India is expected to rise rapidly and cross 7 per cent by FY28, subject to timely resolution of rare earth element (REE) disruption, backed by new model launches and government push for improving the charging infrastructure in the country, according to a new report on July16, as US EV giant Tesla finally entered the country.
India’s electric car ecosystem has witnessed significant momentum over the past three years, growing from just over 5,000 units in FY21 to more than 1.07 lakh units in FY25, representing a nearly 21 times increase, according to the CareEdge Advisory report.
While electric four-wheelers still comprise a small share of total EV sales — dominated by two and three-wheelers — the segment is now entering a high-growth trajectory supported by both public policy and private sector commitment.
The Indian Government has committed to achieving 30 per cent EV penetration by FY30 and is taking an active role in enabling this transition.
Initiatives such as FAME III, the Production Linked Incentive (PLI) Scheme for advanced chemistry cell (ACC) batteries, and basic customs duty exemptions on critical battery minerals — including cobalt, lithium-ion waste, and graphite — are expected to lower vehicle production costs and improve domestic supply chain resilience, the report noted.
“India’s electric car sales penetration is likely to cross 7 per cent by FY28, provided rare earth disruption is resolved in a timely manner. With a robust pipeline of model launches, expanding EV charging infrastructure and battery localisation under the PLI scheme, India is well-positioned to accelerate EV adoption,” said Tanvi Shah, Senior Director and Head, CareEdge Advisory & Research.
