According to a CareEdge Ratings analysis published, electric car sales in India are predicted to reach between 130,000 and 150,000 units in the current fiscal year (FY25), demonstrating a rising adoption rate. After increasing by 90% to 90,432 units in FY24, the number of electric automobiles in India is still gradually increasing.
According to the report, this trend is being driven by government measures aimed at promoting an eco-friendly, sustainable, and efficient transportation industry. The shift to electric mobility involves not just automobiles and trucks but also e-rickshaws and e-karts, which are becoming more and more popular across the country.
According to the report, the passenger vehicles (PV) sector is anticipated to achieve modest volume growth of approximately 3-5 per cent in FY25. This projection considers factors such as the high base effect from FY24, a reduced order book, and expectations of continued subdued demand for entry-level variants in the upcoming fiscal year.
Arti Roy, Associate Director at CareEdge Ratings, said, “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.”
Over the last decade, the utility vehicle (UV) segment has consistently shown superior growth compared to the PV industry at large. In the fiscal year FY24, UV sales volumes surpassed those of passenger cars and vans for the first time. Presently, UVs constitute more than 55 per cent of total new PV sales, and their proportion within the overall PV market is projected to continue increasing over the medium term, as indicated in 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,” highlighted Hardik Shah, Director at CareEdge Ratings.