New Delhi: Electric vehicles are expected to account for 10-12% of India’s total vehicle sales in FY27, up from 8.5% in the previous financial year, driven by strong growth in electric two-wheelers and three-wheelers, according to India Ratings and Research (Ind-Ra), PTI reported.
The ratings agency said EV adoption will continue to be led by vehicle segments where electrification already offers favourable economics.
Electric two-wheeler penetration is projected to increase to 8-10% in FY27 from 6.6% in FY26, supported by lower operating costs, convenient home charging and an expanding range of models from established automakers.
Electric three-wheelers are expected to remain the country’s most electrified vehicle segment, with penetration rising to 62-65% from 59% a year earlier, aided by attractive operating economics for commercial operators and continued government support.
Ind-Ra said adoption in long-distance mobility segments is likely to be slower as buyers continue to weigh higher upfront vehicle costs, charging infrastructure availability and driving range.
However, electric passenger vehicles are expected to continue growing from a relatively low base, with penetration forecast to rise to 6-8% in FY27, compared with 4.4% in FY26, helped by new model launches. Adoption is expected to remain concentrated in metropolitan cities and higher-income consumers.
The agency also expects electric bus penetration to increase to 6-8% from 4.37% in FY26, supported by strong order pipelines and government procurement programmes, although deployment will depend on charging infrastructure and operational readiness at state transport undertakings.
Shruti Saboo, Director, Corporates at Ind-Ra, said India’s EV market continues to benefit from improving ownership economics, a wider range of vehicle options and rising consumer acceptance.
She added that the next phase of EV growth would depend on developing a stronger domestic manufacturing ecosystem, reducing import dependence and expanding local capabilities in battery production and other key EV components, alongside the continued rollout of charging infrastructure.
