India's smaller cities are driving electric two-wheeler adoption through affordability, infrastructure growth, and supportive policies, creating a decentralized mobility revolution that extends far beyond traditional metropolitan markets and reshapes the nation's transportation landscape.
18 Oct 2025 | 8902 Views | By Nemin Vora, Odysse Electric
The electric two-wheeler (E2W) revolution in India has spread and has penetrated beyond the country's major cities. The real transformation is now taking place in Tier 2 and Tier 3 cities of India, where expanding urbanisation, affordability, improving infrastructure, and supportive policies are combining to reshape mobility. These regions, which ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
The electric two-wheeler (E2W) revolution in India has spread and has penetrated beyond the country's major cities. The real transformation is now taking place in Tier 2 and Tier 3 cities of India, where expanding urbanisation, affordability, improving infrastructure, and supportive policies are combining to reshape mobility. These regions, which were once regarded as the backbone of India's economic growth, are now also emerging as major catalysts of electric mobility adoption.
Urbanisation and Market Evolution
India’s Tier 2 and Tier 3 cities present a unique opportunity for electric mobility as they have the scope. The growth trajectory thereby pushes northwards. Therefore, these urban centres are rapidly expanding both demographically and economically, with a rising middle class driving increased vehicle ownership and daily transport demand.
Unlike metros, where congestion and parking limits restrict adoption, smaller cities provide better home-charging access and shorter trip distances, which ideally complement the advantages of E2Ws. The results are visible in adoption rates. Tier 2 EV penetrations nearly doubled to 10.67% in FY2025, while Tier 3 cities saw 8.68%, indicating one of the fastest diffusion rates in India's automotive history.
Surat, Jaipur, and Lucknow lead among Tier 2 cities, while smaller hubs like Kota and Udaipur are showing strong momentum. Notably, Surat now contributes 25% of Gujarat’s total EV sales surpassing Ahmedabad. Similarly, Pune accounts for 16% of Maharashtra’s EV sales, outpacing Mumbai’s 7%. These shifts signal a broader decentralisation of India’s e-mobility growth story.
Affordability as a Catalyst
In a country like India, affordability remains an important aspect fuelling EV adoption in these markets. Operating costs for electric two-wheelers are approximately Rs 0.15 to Rs 0.20 per kilometer. It is significantly lower than petrol vehicle which costs around Rs 2 to Rs 2.50 per kilometer. This difference brings in an annual savings of Rs 25,000 to Rs 30,000, which is highly profitable for budget-conscious middle-class consumers. Apart from that, lower maintenance requirements enhance the cost-effectiveness of electric two-wheelers, making them not just an environmentally responsible choice but a financially rational one as well.
Role of Government Incentives
A critical factor towards boosting the electric two-wheeler market more than that of the metropolitan boundaries is the policies of the government. Programmes like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme and Production Linked Incentive (PLI) programme have reduced the initial prices and stimulated the production capacity. Tax exemptions at the state level, scraps, and supportive regulations enhance the value proposition of buyers in the smaller cities even more. All these will help to decrease the obstacles to adoption and integrate EVs into more comprehensive clean energy policies, supporting a nationwide shift to sustainable mobility.
Infrastructure Expansion and Connectivity
The growth of charging infrastructure has been equally critical. India now has over 26,000 public charging stations, with many strategically located in non-metro clusters. However, what truly gives Tier 2 and 3 cities an edge is the ability to charge vehicles at home. Unlike metros with limited parking, these cities offer residential spaces with reliable electricity - making overnight home-charging a default practice rather than a challenge. This accessibility has also enabled local businesses and delivery fleets to integrate E2Ws seamlessly into operations, supporting last-mile connectivity and improving supply-chain efficiency.
Shifting Consumer Mindsets
It’s all about mindsets and thankfully, consumer perception is undergoing a significant change. In smaller cities, electric vehicles are no longer viewed as experimental - they represent modernity, responsibility, and progress. Younger buyers increasingly associate E2Ws with smart mobility and environmental awareness, turning them into both an economic choice and a lifestyle.
Conclusion: A Connected, Inclusive Future
India’s e-mobility story is moving from being metro-centric to truly inclusive. Tier 2 and Tier 3 cities are not merely following the transition - they are leading it. With cost advantages, improving infrastructure, and policy alignment, these cities are shaping a decentralised model of growth that is both scalable and sustainable. As electric two-wheelers continue to dominate the segment, the future of India’s mobility will be defined not by its largest metros but by the energy and aspirations of its emerging cities quietly powering the nation’s green transition, one electric ride at a time.
Nemin Vora is Chief Executive Officer of Odysse Electric. Views expressed are the author's personal.