Government support in the form of subsidies, increased awareness, and more product introductions has helped to propel the steady improvement in the penetration of electric vehicles.
As the market leader, the electric two-wheeler (e2W) sector accounted for 85–90% of all EV sales in FY23. The share of e2Ws in two-wheeler sales as a whole rose by over 5%. The segment’s continued appeal is indicated by the projection that it will expand its penetration by 10–12% in FY25.
With the exception of the rickshaw segment, electric three-wheelers have gained popularity, reaching a 7% penetration rate in FY23. By FY25, that percentage is probably going to reach 14–16%. Amidst this, e-bus sales have increased dramatically, with over 1,800 units sold in FY23 thanks to government initiatives. In FY25, penetration is expected to increase to 11–13%. There is also a growing trend in electric cars. According to ICRA, 4-6% of cars will be electric by FY25.