A new report by CareEdge Rating has revealed that electric car sales in India are likely to reach 1.3-1.5 lakh in the current fiscal year. In FY24, the sales witnessed 90% YOY growth.
"Electric car sales continue to improve over the last five years. For FY24, electric car retail sales recorded y-o-y growth of 90% with volumes at 90,432 units. With an improving penetration rate, electric car volumes, in the PV segment, are likely to clock sales volume of around 1.3-1.5 lakh for FY25," the rating agency said in a report
As per the report, the passenger vehicle industry in India is anticipated to witness moderate growth in the fiscal year 2025, with sales volumes expected to expand by 3% to 5%. This also comes when the electric car sales in FY24 slowed down to 7.4%.
The Economic Times quoted Analysts and attributed this deceleration to several factors including stabilizing pent-up demand post-Covid recovery, escalated vehicle prices, and the lingering impact of high interest rates.
"The PV industry is expected to exhibit moderate volume growth of around 3-5 per cent in FY25 on account of a high-base effect of FY24, shrinking orderbook and expectation of persistently subdued 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", noted Arti Roy, Associate Director at CareEdge Ratings.
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