India's electric vehicle sector is entering a broader scale-up phase, with EV penetration likely increasing to 10-12% of the overall vehicle sales in this fiscal from 8.5% in the last year, driven by e-two-wheelers, ratings agency Ind-Ra said.
The agency said it expects EV adoption to remain strongest in segments where the economics of electrification are already compelling.
The two-wheeler EV penetration is estimated to increase to 8-10% in FY27 compared to 6.6% in the previous year, supported by lower operating costs, convenient home-charging options, and a growing product portfolio from incumbent automakers, the agency said.
Similarly, electric e-3Ws are expected to remain the most electrified vehicle category, with penetration increasing to 62-65% in FY27 against 59% in the previous year, driven by attractive operating economics for commercial operators and continued government support, Ind-Ra said.
Electrification in long-distance mobility segments, the ratings agency said, would progress more gradually, as consumers continue to evaluate higher upfront acquisition costs, charging accessibility, and driving-range considerations.
