Electric vehicles (EVs) will have a share of more than 7 percent in the country's car market by 2028

The share of electric vehicles (EVs) in the country's car market will increase to over 7 per cent by FY28. This information was given in a report released on Wednesday. However, this will depend on the supply of Rare Earth Elements (REEs), launch of new models and improvement in the charging infrastructure in the country by the government.
According to the CareAge Advisory report, India's electric car ecosystem has grown by leaps and bounds in the last few years. During the same period, sales of EVs increased to 1.07 lakh units in FY25 from over 5,000 units in FY21. The report further said that at present, the share of four-wheelers in the sales of electric vehicles is very low. Most of the electric vehicles sold in the country are two-wheelers and three-wheelers. The Government of India has committed to increase the share of electric vehicles to 30% of total vehicle sales by FY30 and is continuously working towards it. Initiatives such as FAME III, the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) batteries, and the reduction of basic customs duty on critical battery minerals, including cobalt, lithium-ion waste and graphite, could lead to a vehicle boa or anaconda, the report said. Tanvi Shah, Senior Director and Head, CareAge Advisory and Research, said, The penetration of electric car sales in India is likely to cross 7% by FY28, provided the problem of rare earth minerals is addressed in a timely manner. With a robust series of model launches, expanding electric vehicle charging infrastructure and battery localisation under the PAI scheme, India is well positioned to accelerate the adoption of electric vehicles. "