Mumbai, July 23: India's electric vehicle (EV) market is set for stronger growth, with EVs expected to account for 10-12 per cent of total vehicle sales in FY27, up from 8.5 per cent in the previous fiscal, according to a report by India Ratings and Research (Ind-Ra).

The report said the country's EV industry is entering a broader expansion phase, largely driven by rising adoption of electric two-wheelers. Ind-Ra expects EV uptake to remain highest in segments where electrification offers clear economic advantages.

Electric two-wheeler penetration is projected to rise to 8-10 per cent in FY27 from 6.6 per cent in the previous fiscal. The growth is expected to be supported by lower running costs, the convenience of home charging, and an expanding range of models from established automobile manufacturers, the report added.