India's Electric Car Sales on the Rise

Electric car sales in India are projected to exceed 7% of total car sales by FY28, according to a recent report by CareEdge Advisory. This growth is contingent upon resolving supply chain disruptions in rare earth elements (REEs) and bolstering the country's charging infrastructure.

Key Drivers of EV Adoption

The report highlights several factors contributing to this optimistic projection, including a robust pipeline of new electric vehicle (EV) models, expanding EV charging infrastructure, and efforts to localize battery production under the government’s production-linked incentive (PLI) scheme.

Charging Infrastructure Gains Momentum

One of the main hurdles to EV adoption, charging infrastructure, is witnessing significant growth. The number of public EV charging stations in India has surged from 5,151 in CY22 to over 26,000 by early FY25.

Policy Support Fuelling Growth

Further policy initiatives, such as FAME III, exemptions in basic customs duty for battery-critical minerals, and the ACC PLI scheme, are expected to lower vehicle costs and enhance domestic battery production capabilities, paving the way for sustained EV adoption in India.