India's Electric Car Future: Accelerating Towards a Greener Tomorrow

India's electric car sales penetration is projected to exceed 7% by FY28, driven by model launches and enhanced charging infrastructure, contingent on resolving rare earth disruptions, as per a CareEdge Advisory report. Government policies and private sector commitments fuel this growth in the electric vehicle segment.

India is gearing up for a significant milestone in the electric vehicle sector, with electric car sales penetration expected to surpass 7% by FY28. This prediction, highlighted in a comprehensive report by CareEdge Advisory, is predicated on resolving disruptions in rare earth elements alongside the introduction of new model launches.

The growth trajectory, however, relies heavily on governmental initiatives to bolster charging infrastructure. Over the recent years, India's electric car market has burgeoned, jumping from just over 5,000 units in FY21 to over 1.07 lakh units projected for FY25. Industry experts, like Tanvi Shah from CareEdge Advisory, emphasize the role of robust model pipelines and battery localizations as crucial growth catalysts.

Charging infrastructure, once a significant hurdle, is seeing accelerated development, adding to the promise of future expansion. The number of charging stations has notably surged from 5,151 in CY22 to more than 26,000 by FY25. Policy measures, such as the FAME III initiative and PLI schemes, aim to reduce production costs and fortify supply chains, propelling the sector into an era of sustainable growth.

(With inputs from agencies.)