Electric car sales in India to reach 1.3-1.5 lakh in FY25: Report

According to a CareEdge Rating report, electric car sales in India are projected to reach 1.3-1.5 lakh units in FY25, representing a significant increase from the 90,432 units sold in FY24, which saw a year-over-year growth of 90%. This forecast reflects the improving penetration of electric vehicles in the passenger vehicle (PV) segment. The PV industry in India is anticipated to witness moderate growth in FY25, with sales volumes expected to expand by 3% to 5%, following a 7.4% increase in FY24.

The report highlights a notable trend of increasing popularity of sports utility vehicles (SUVs), which recorded a 22.4% surge in sales in FY24. This preference shift among consumers towards vehicles offering greater utility and perceived safety benefits is expected to continue, further consolidating the SUV's dominance in the market. However, the PV industry is also facing challenges, particularly in the entry-level vehicle segment, where demand is anticipated to remain subdued due to the increasing costs of these models and a shift in consumer preferences towards premium and high-end vehicles driven by economic conditions and demographic changes.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.