India’s EV revolution: 2025 will see electric cars outpace petrol, diesel
Notable because
India has several policies that promote the adoption of electric vehicles (EVs). In addition to a lower Goods and Services Tax (GST), the PM-EDRIVE scheme incentivises EV two- and wheelers, e-ambulances, e-trucks, and other emerging EV categories, with the greatest emphasis on e-buses. While the scheme does not cover passenger four-wheelers (4W), an increased allocation for public charging infrastructure (compared to the predecessor FAME scheme) is expected to drive volumes in this category by addressing range anxiety.
What to look out for in the months ahead
A sharp increase in the number of electric 4W vehicle model launches expected in 2025 is a welcome development. Nonetheless, the market penetration levels of EVs in the 4W passenger and commercial segments were only 2.2% and 3.8%, respectively, in FY 2024. Will the introduction of these new electric 4W models, along with the increased allocation for charging infrastructure under PM-EDRIVE, effectively stimulate further growth in the electric 4W category?