EV Car Sales in India May Cross 7% by FY28: CareEdge Cites REE Supply Stability, New Models & Charging Infra as Key Drivers
India’s electric vehicle (EV) market is poised for robust growth, with electric car sales projected to exceed 7% of total passenger vehicle sales by FY28, according to a recent report by CareEdge Advisory, as reported by PTI. The projection hinges on key developments such as the resolution of global rare earth supply disruptions, the launch of new EV models, and the expansion of charging infrastructure across the country.
The report highlights a steep growth trajectory in India’s electric car segment, which remains smaller than the two- and three-wheeler EV segments. Sales have surged from just over 5,000 units in FY21 to more than 1.07 lakh units in FY25, signaling a shift in consumer sentiment and policy support.
EV Infrastructure Expansion a Key Enabler
According to Tanvi Shah, Senior Director & Head, CareEdge Advisory & Research, India is well-positioned to accelerate EV adoption. The growth is expected to be driven by new model launches, improved public charging facilities, and battery localisation under the government’s PLI (Production-Linked Incentive) scheme.
One of the report’s most significant findings is the rapid expansion of charging infrastructure. Public charging stations have increased fivefold in just three years, rising from 5,151 in CY22 to over 26,000 by early FY25. This growth addresses a critical concern—range anxiety and lack of accessible charging options, often cited as barriers to EV adoption.
Policy Support to Bolster Domestic EV Ecosystem
The report also points to the importance of policy incentives. The upcoming FAME III scheme and customs duty exemptions on essential battery minerals are expected to reduce EV production costs and strengthen domestic supply chains. These measures are especially important to reduce India’s dependence on battery imports.Despite existing challenges around affordability and infrastructure uniformity across regions, CareEdge believes that with the right policy environment and continued industry innovation, electric four-wheelers are on track for accelerated adoption across India’s mobility landscape.
