The electric vehicle (EV) market is poised for substantial growth by 2025, according to a report by ICRA. Government support, including subsidies, coupled with increased awareness and a surge in product launches, continues to fuel the momentum of EV penetration. The report underscores the significant role played by electric two-wheelers (e2W), constituting 85-90% of total EV sales in FY23. With a nearly 5% increase in penetration within the overall two-wheeler market, the e2W segment is anticipated to elevate its market share by 10-12% by FY25.
Electric three-wheelers are also making strides, achieving a 7% penetration rate in FY23 (excluding rickshaws). Projections indicate a robust rise to 14-16% penetration by FY25. The electric bus sector has experienced substantial growth, with over 1,800 units sold in FY23, driven by supportive government measures. Predictions suggest a further increase in penetration to 11-13% by FY25.
Even electric cars are gaining traction, with ICRA forecasting a penetration rate of 4-6% in FY25. The overall landscape of the EV market reflects a promising trajectory, marked by the dominance of two-wheelers, the expanding footprint of three-wheelers, the burgeoning electric bus sector, and a growing presence of electric cars. This optimistic outlook underscores the evolving dynamics of the automotive industry as it embraces sustainable and eco-friendly transportation solutions.