Tier 2 and Tier 3 cities in India are witnessing a sharp rise in electric vehicle adoption, driven by affordability, policy support, and growing infrastructure, marking a pivotal shift in the country’s mobility landscape.
03 Jul 2025 | 405 Views | By Yogesh Bhatia, LML
The revolution of EVs in India is undergoing a decisive and remarkable transition. What was once limited to the metropolitan centres is now expanding into Tier 2 and Tier 3 cities, now emerging as the engines of growth in India’s landscape of mobility. This shift is not incidental, but is ...
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The revolution of EVs in India is undergoing a decisive and remarkable transition. What was once limited to the metropolitan centres is now expanding into Tier 2 and Tier 3 cities, now emerging as the engines of growth in India’s landscape of mobility. This shift is not incidental, but is marked by rising awareness among the segmented population, rising environmental consciousness, expansion of greener infrastructure, and policy innovations.
These minor developments are helping smaller cities emerge as pivotal contributors to the future of transportation in India.
The Surge in EV Adoption Beyond Metros
As per the recent data, a substantial uptick has been seen in the adoption of electric vehicles, especially in non-metropolitan regions of India.
As of now, a rise to 10.67% from 4.16% has been observed in the Tier 2 cities, while the sales of EVs in Tier 3 have risen to 8.68% from 1.69% in the FY2022.
Jaipur, Surat, and Lucknow have been gaining a lot of traction these days as key EV hubs because of the intervention by the targeted policies, ease of markets, and development in infrastructure are making it easier.
Even in modestly sized cities, such as Vijayawada, Ujjain and Nashik, this progress is echoing loudly as the consumers here are informed and responsive.
These changing dynamics are not merely a redistribution of demands, but indicative of the evolving sentiments of the consumer and growing accessibility of EVs beyond the urban centres.
Key Drivers of EV Growth in Tier 2 & Tier 3 Cities
The rapid growth in sales of electric vehicles across cities is proof of the nation’s evolving mobility landscape, driven by several interconnected forces.
The affordability and accessibility of EV models are making it more attractive and feasible. As a result, the sales of electric two-wheelers have breached the 58% mark in Tier 2 cities and were more than 70% in Tier 3 cities.
Though the gaps in infrastructure remain, notable progress is underway. The deployment of public charging stations is improving confidence in EV ownership. In Tier 3 cities, where dedicated charging networks are still emerging, innovative solutions such as battery swapping stations are bridging the gap.
The compounding rates of investments by the private players and the local governments are playing a crucial role in the expansion of charging networks.
The surge in doorstep delivery services and the expanding sector of e-commerce have significantly accelerated the demand for electric two- and three-wheelers.
Furthermore, central and state government-led programs such as PLI and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) are playing an important role in advancing the adoption of EVs and supporting the development of the electric mobility ecosystem.
Segment-Wise Analysis
The electric two-wheelers have emerged as the preferred choice of potential buyers for both personal and commercial uses, mainly due to their lower costs of running and ease of commutation in congested urban environments.
In Tier 2 and Tier 3 cities of India, the electric passenger and cargo three-wheelers are acting as the backbone of mobility over auto-rickshaws, leading to a significant amount of savings for operators.
The presence of electric cars and buses is growing steadily in non-metro cities, too.
This diverse adoption across vehicle segments is highlighting the broadening appeal and practicality of electric vehicles beyond major urban spheres.
Addressing Persistent Barriers to Inclusive EV Adoption
While the adoption of electric vehicles in India is gaining traction, several challenges must also be overcome to sustain this momentum. Chief among them is the restricted access to finances, which continues to hinder the purchasing power of the potential buyers despite their growing interests.
Although awareness around EVs has increased, consumer trust remains a work in progress. Strategic, data-driven educational efforts are required to bridge this gap and support informed decision-making.
The switch to electric vehicles has brought significant savings on fuel and maintenance costs, making EVs a worthy option for long-term investment.
As we address the challenges, all the towns and smaller cities are set to play a central role in shaping India’s clean transportation future.
For electric mobility to be truly transformative, it must be accessible, equitable, and supported by physical infrastructure along with financial inclusivity.
Yogesh Bhatia is MD, and CEO of LML.Views expressed are the author's personal.