Electric vehicle (EV) car sales penetration in India to cross 7% by FY28, says CareEdge
- IBEF
- July 17, 2025
Electric vehicle (EV) sales penetration in India is projected to exceed 7% by FY28, contingent on the timely resolution of rare earth element supply disruptions and continued new model launches, according to a report by CareEdge Advisory. The report highlights that India’s EV ecosystem has gained significant traction in recent years, expanding from just over 5,000 units in FY21 to more than 1.07 lakh units in FY25. Senior Director and Head of CareEdge Advisory & Research, Ms. Tanvi Shah, noted that India is well-positioned to accelerate EV adoption, supported by a robust pipeline of model launches, expanding charging infrastructure, and battery localisation under the production-linked incentive (PLI) scheme. The government’s role in enhancing EV charging infrastructure remains crucial for sustained growth in penetration.
While electric four-wheelers currently represent a small share of total EV sales, dominated by two- and three-wheelers, the segment is entering a phase of rapid growth, backed by strong public policy and private sector commitments. Charging infrastructure, historically a significant bottleneck, has seen unprecedented expansion, with the number of public EV charging stations increasing from 5,151 in CY22 to over 26,000 by early FY25. Government initiatives such as Faster Adoption and Manufacturing of Electric Vehicles (FAME) III, the PLI scheme for advanced chemistry cell (ACC) batteries, and customs duty exemptions on critical battery minerals like cobalt and lithium-ion waste are expected to reduce production costs and enhance domestic supply chain resilience, thereby supporting the broader transition to electric mobility in India.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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