According to industry experts, the electric passenger vehicle market in India is set to hit a milestone, and the EV penetration will grow to more than 7 percent of total car sales by FY28. The prediction indicates a declining cost, the greatest number of charging stations, and wider diversification of electric models that will be introduced in the market within the next two years.
Large Growth on a Small Foundation
In India, electric cars have a current share in the car sales of less than 3 percent of all passenger cars sold. Nevertheless, analysts observe that the growth on an annual basis is healthy due to the high fuel prices, decrease in the cost of running EVs, and heightened level of consumer awareness.
Introducing several mass-market electric models in the price range of 20 lakh will further boost the pace of adoption among others than early urban consumers.
Supply Bottlenecks Cause of significant risk
Although there is good momentum, analysts are concerned that the aspect of the supply side might halt the gains. There is still the issue of limited access to rare-earth materials, lithium, and permanent magnets that are important in electric motors and batteries.
India is presently almost entirely reliant on imports of some of these components, which exposes the EV ecosystem to global price pressure and geopolitical dangers.
Analysts believe domestic processing incentives, recycling, and diversified sourcing will be important in alleviating these bottlenecks to continue growth.
Policy Support and Infrastructural Development
Government policies still take a leading role in increasing the levels of EVs. Major programs in the case of financing charging infrastructure, domestic products, and clean mobility are slowly enhancing ecosystem preparation.
The charging network in India, particularly stretching along highways as well as the major cities, has been increased by both the common and independent players, making the range anxiety minimal among the prospective customers.
Simultaneously, states that provide road tax waivers, exemption of registration fees, and favorable electricity tariffs have assisted in making EV ownership more appealing.
Turnkey Strategies that are Creating Industry Swell
Automobile manufacturers are already moving towards less premiumized segments in volumes (compact SUVs and sedans). The component and battery pack localization are also assisting in cost reduction. Analysts do not think that price parity with internal combustion engine vehicles in some segments will be possible before FY28 as economies of scale improve.
Outlook
With supply constraints controlled and policy backing stable, analysts think that EVs would become a solid presence in the passenger car market in India by FY28 and definitively alter the mobility transition process in this country.
