Electric vehicle penetration likely to fall short of govt's 2030 plan

Subsidy reduction has hit industry's estimate of 1.2 mn E2W sales in FY24

The government estimates that by FY29, electric two-wheeler sales will see a tenfold increase, reaching 10.5 million, up from the one million expected to be sold in FY24.

This will push up electric two-wheeler sales penetration from 6.1 per cent in FY24  to 37.8 per cent in FY29.
 

The projections are based on Bain Analysis and Climate Trends and it is on this basis that calculations for the proposed FAME-III subsidy requirement are being worked out.
 

The penetration is expected to hit 12.6 per cent in FY26, and 18.2 per cent in FY27.  The government expects the FAME-III subsidy to be