Electric vehicles boom, share will be more than 7% by FY28

The proportion of electric vehicles (EVs) in the auto market of the country will rise to over seven percent by FY28. This, however, will be based on the availability of rare metals, new model launch and development of charging facility in the country by the government. The report of CareAge Advisory stated that India's electric car ecosystem picked up strongly in the recent past. In the period, EV passenger vehicle sales have risen to 1.07 lakh units in FY25, from 5,000+ units in FY21.

The report further said that at present, the share of four-wheelers in electric vehicle sales is very low. Most of the electric vehicles sold in the country are two-wheelers and three-wheelers. The government has committed to increasing the share of electric vehicles to 30 percent in total vehicle sales by FY 2030 and work is also being done continuously on this. The report said that initiatives such as FAME-3, Production Linked Incentive (PLI) scheme for advanced chemistry cell (ACC) batteries and reduction of basic customs duty on important battery minerals including cobalt, lithium-ion waste and graphite are expected to reduce vehicle production costs and improve the strength of the domestic supply chain.

According to the report, charging infrastructure, which has been one of the biggest barriers to electric vehicle adoption in India, is now growing rapidly. Over the past three years, the number of public EV charging stations (EVPCS) in India has grown nearly 5 times, from 5,151 in calendar year 2022 to over 26,000 by the start of FY 2025.