Electric Car Sales In India Expected To Reach 1.3-1.5 Lakh In Financial Year 2025
Electric car sales in India are supposed to hit between 1.3 and 1.5 lakh units in the current fiscal year, as per rating report of CareEdge. This surge is attributed to an increasing adoption rate.
Increasing In Electric Car Sales
After a record-breaking growth of 90 percentage, 432 units sold in FY24, the penetration of electric cars in India continues to grow higher. This growth is largely driven by government efforts of promotion which includes sustainable, environmentally friendly, and efficient transportation.
The shift towards electric vehicles extends beyond just cars, with trucks, e-rickshaws, and e-karts also gaining traction across the entire nation.
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The report anticipates that the overall passenger vehicle (PV) market will see moderate volume growth of near about 3-5 percent in FY25. This is due to the strong effect of FY24, a shrinking order book, and the expectation of ongoing low demand for entry-level variants in FY25.
“Strong demand for new model launches and SUVs coupled with the expectation of interest rate cuts in the second half of FY25 is expected to keep the sales momentum rolling,” said Arti Roy, Associate Director at CareEdge Ratings.
Utility Vehicle
For the past decade, the utility vehicle (UV) segment has consistently underperformed the growth rate of the PV industry. In year 2024, UV sales volumes exceeded those of passenger cars and vans for the first time.
Currently, UVs make up over 55 percent of all new PV sales, and their share is expected to grow further in the medium term, according to the report.
“While the market for premium vehicles is predicted to thrive, driven by a surge in demand for luxury and high-end models, entry-level variants are likely to see continued diminished demand due to a downturn in both rural and urban markets,” commented Hardik Shah, Director at CareEdge Ratings.
