Buckle up, India’s electric vehicle (EV) market is charging toward a major milestone! A new CareEdge Advisory report predicts electric car sales will soar past 7% market share by FY28, fueled by new model launches, better charging infrastructure, and timely resolution of rare earth element (REE) supply issues.

The report highlights India’s electrifying progress, with electric car sales skyrocketing from just 5,000 units in FY21 to over 1.07 lakh units in FY25—a jaw-dropping 21-fold increase. “With a robust pipeline of models, expanding charging networks, and battery localization through the PLI scheme, India is primed for an EV boom,” said Tanvi Shah, Senior Director at CareEdge Advisory & Research.

While two- and three-wheelers dominate EV sales, four-wheelers are now on a high-growth path, backed by government policies like FAME III and private sector innovation. Charging infrastructure, once a major hurdle, is also revving up, with public EV charging stations surging from 5,151 in CY22 to over 26,000 by early FY25—a 72% annual growth rate.

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The government’s push doesn’t stop there. Initiatives like the Production-Linked Incentive (PLI) scheme for advanced batteries and zero customs duties on key minerals like cobalt, lithium-ion waste, and graphite are set to slash production costs and strengthen India’s EV supply chain. With Tesla’s recent entry and new models from brands like Vinfast hitting the market, will India’s roads soon hum with electric power.

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