India’s electric vehicle revolution is accelerating at breakneck speed, and the latest projections paint an exciting picture for the future of sustainable mobility. According to a groundbreaking CareEdge Advisory report, the country’s electric car sales penetration is set to cross the 7% milestone by FY28 – a remarkable leap that could reshape India’s automotive landscape forever.
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The Current Electric Storm
The numbers tell a compelling story of transformation. India’s electric vehicle industry hit a new milestone in 2024, with sales surging 26.5 per cent year-on-year to 1.94 million units, narrowly missing the 2 million mark. This isn’t just growth – it’s a revolution gaining unstoppable momentum.
What makes this surge even more impressive is the context. The 19,49,114 EVs sold in CY2024 account for 7.40% of the total 26 million vehicles sold across all segments, showing that electric vehicles are no longer a niche market but a mainstream force.
The 7% Promise: What It Really Means
The CareEdge Advisory report’s projection isn’t just a number – it’s a promise of transformation. “India’s electric car sales penetration is likely to cross 7 per cent by FY28, provided rare earth disruption is resolved in a timely manner”, the report states, highlighting both the opportunity and the challenges ahead.
This growth trajectory represents more than statistics; it signifies millions of Indian families choosing cleaner, quieter, and more efficient transportation. For context, Battery Electric Vehicle production in India is set to nearly triple to 377,000 units in 2025 from 130,000 in 2024, demonstrating the manufacturing sector’s readiness to meet this demand.
The Perfect Storm of Growth Factors
Several powerful forces are converging to drive this electric revolution:
Model Launches Galore: With a robust pipeline of model launches, expanding EV charging infrastructure and battery localisation under the PLI scheme, India is well-positioned for this growth. Major manufacturers like Maruti Suzuki, Hyundai, Mahindra, and Tata Motors are launching compelling electric options.
Infrastructure Expansion: The charging network is expanding rapidly. Public charging stations grew to 25,202 by December 2024, with Karnataka leading the charge with 5,765 stations, followed by Maharashtra and Uttar Pradesh.
Production Momentum: India’s 2024 passenger EV production has increased by 22.5% year-over-year, to about 125,500 units, showing manufacturers are scaling up to meet demand.
The Rare Earth Reality Check
However, this electric dream faces a significant hurdle. The report emphasizes that achieving the 7% target depends on timely resolution of rare earth element (REE) disruption. These materials are crucial for EV batteries and motors, and supply chain disruptions could slow India’s electric ambitions.
This challenge isn’t just technical – it’s strategic. India’s ability to secure reliable rare earth supplies will determine whether the country can maintain its electric vehicle momentum or face production bottlenecks.
Beyond Cars: The Broader EV Ecosystem
The electric revolution isn’t limited to cars. Two-wheelers led the charge with 59% of total sales, followed by three-wheelers at 35%, showing that India’s electric transformation is happening across all vehicle categories.
This diversified growth creates a robust ecosystem where electric mobility becomes normalized across different income levels and use cases – from delivery vehicles to family cars.
The Market Opportunity
The financial implications are staggering. The India electric vehicle market size was valued at USD 8.49 billion in 2024 and is projected to grow at a CAGR of 40.7% from 2025 to 2030, representing one of the world’s fastest-growing automotive markets.
Looking Ahead: The Electric Future
As India races toward the 7% electric car penetration target by FY28, the country stands at a crucial juncture. Success will depend on resolving supply chain challenges, maintaining infrastructure growth, and continuing government support through initiatives like the PLI scheme.
The electric revolution in India isn’t just about cleaner transportation – it’s about positioning the country as a global leader in sustainable mobility. With nearly 2 million EVs already on Indian roads and production set to triple, the question isn’t whether India will achieve 7% electric car penetration, but whether it might exceed even these ambitious projections.
The road ahead is electric, and India is firmly in the driver’s seat.
