Electric vehicle market set to be on full charge by 2025: ICRA report

Electric vehicle penetration continues to improve at a healthy pace, spurred by government support in the form of subsidies, enhanced awareness, and increasing product launches, according to ICRA’s research, published on Tuesday. It expects electric bus, two-wheeler and three-wheeler penetration to grow significantly by FY25.

The report highlights that the electric twowheeler (e2W) segment has emerged as a frontrunner, accounting for 85-90 per cent of total EV sales in FY23. Penetration of e2Ws in the overall two-wheeler sales increased nearly 5 per cent. The segment is projected to increase its penetration by 10-12 per cent in FY25, indicative of its ongoing popularity.

Electric three-wheelers have gained traction, achieving a 7 per cent penetration rate in FY23 (excluding the rickshaw segment); peneration is likely to be 14-16 per cent in FY25. Meanwhile, e-buses, buoyed by government measures, have surged with over 1,800 units sold in FY23. Penetration is predicted to rise to 11-13 per cent in FY25.

Electric cars are also gaining traction. ICRA predicts e-car penetration to be 4-6 per cent in FY25.