Electric vehicles will account for just 3%-5% of the new passenger vehicle sales by 2025: ICRA

Electric vehicles will not be able to gain any significant traction in the domestic passenger vehicle market in the next few years and will account for just 3%-5% of the new vehicle sales by 2025, due to high prices and lack of direct and indirect fiscal stimulus from the union and the state governments, said ratings agency ICRA in a note on Monday.

Lack of availability of affordable finance schemes for such zero-emission vehicles will also hamper prospects in the coming years.

One of the key drivers of automobile sales, and residual value of a vehicle after 3-4 years is financing and its penetration. Electric vehicles are generally priced at a premium, and their resale value takes considerable hit after getting out of the showroom as compared to combustion engine counterparts.