EVs Likely To Clock Around 1.3-1.5 Lakh Sales In FY25, Finds Report

CareEdge Predicts GST Cut On RE Components From 12% To 5%

CareEdge Rating, a rating agency report on passenger vehicle (PV) sales in the automobile industry said that India is expected to experience a strong demand for new model launches. The report attributed this growth to continued growth in demand for Electric Vehicles (EVs) and SUVs coupled with a possible cut in interest rates in the second half of FY25.

The CareEdge report stated, “After recording robust growth of 90% in FY24, with an improving penetration rate, electric car sales in the PV segment are likely to clock volume of around 1.3-1.5 lakh for FY25. It found that electric car sales increased over the last five years.  It forecasts that in the financial year (FY24), the electric car retail sales are expected to record a year-over-year (YoY) growth of 90% with volumes at 90,432 units. It expects an improvement in the electric car penetration rate, especially in the PV segment which is likely to clock a sales volume of around 1.3-1.5 lakh for FY25.”

Electric Vehicle Retail Sale For FY24, Recorded 90% YoY Growth

Similarly, the International Energy Agency (IEA) ‘Global EV Outlook’ report found a rise in the global share of the three-wheeler (3W) market by 13% in 2023 to reach 4.5 million sales. The report found three-wheeler electric vehicles composed a 21% share compared to 18% in 2022.

IEA report estimated that almost 1 million electric three-wheelers (3Ws) were sold in 2023, reflecting 30% growth compared to 2022. It found the market to be highly concentrated, within China and India which together accounted for more than 95% of all-electric and 80% of conventional 3W sales.

Studies showed that India overtook China in 2023 to become the biggest market for electric 3Ws, with over 580,000 sales. With this, India reportedly saw its sales increase by 65% concerning 2022, due to government financial incentives and associated reductions in the cost of ownership of electric 3Ws. Reportedly, sales in China declined 8% in 2023, to 320 000, making the country the second-largest electric 3W market.