Electric car penetration India FY28
Electric car sales in India are set to exceed 7% Electric car penetration India FY28, driven by expanding infrastructure, favorable policies, and a growing lineup of EV models. The outlook remains strong if rare earth material constraints are addressed and investments continue.
Source Image: financialexpress
Read More: Kia Carens Clavis EV Launched at ₹17.99 Lakh in India
India’s EV Journey Accelerates
Electric vehicles (EVs) have moved from being a niche category to a growing sector in India’s automotive industry. A new report by CareEdge Advisory reveals that electric car sales penetration is projected to surpass 7% by FY28, signaling a major shift toward clean mobility.
This marks a sharp rise from the current penetration rate of around 2% in FY25, indicating India’s readiness to embrace electric transportation.
Key Growth Drivers
1. Rising EV Models
The Indian market is witnessing a surge in EV offerings from both startups and legacy automakers. Affordable and mid-range electric cars are becoming more accessible, appealing to a wider consumer base.
2. Government Push
Government schemes such as FAME II, PLI for battery manufacturing, and state EV subsidies are crucial in accelerating demand. Future incentives under FAME III are expected to further reduce the cost of ownership for EVs.
3. Charging Infrastructure Growth
India’s public EV charging stations have grown from just 5,000 units to over 25,000 stations in three years, making EVs more viable for long-distance and urban travel.
Challenges That Remain
While the growth trajectory looks promising, two main hurdles could slow progress:
-
Rare Earth Supply Issues: Critical materials like lithium and cobalt are in short supply globally. Disruptions in these supply chains could impact EV battery production.
-
Policy & Investment Gaps: Timely implementation of EV policies and sufficient private-sector investment are needed to maintain growth momentum.
Industry Trends So Far
-
FY21: ~5,000 electric cars sold
-
FY25 (est.): ~1.07 lakh electric cars sold
-
FY28 (target): 7%+ of total car sales to be EVs
EV four-wheelers still trail behind two- and three-wheelers in terms of volume, but they’re catching up rapidly due to innovation, better affordability, and expanding customer trust.
Outlook Ahead
If infrastructure investments are continued and material supply issues are resolved, India could be positioned as a global EV hub. The upcoming EV policies, battery swapping frameworks, and domestic production initiatives will further fuel this transition.
