Whitepaper – INDIA’S EV SHIFT: How Small Cities Are Driving Big Change
Date of Release – May 2025
India’s electric vehicle (EVs) transition is no longer limited to its metropolitan cities. While cities like Bengaluru, Delhi, and Mumbai were the frontrunners in EV adoption, but now, a new wave of growth is emerging from Tier 2 and Tier 3 cities, regions that represent a significant share of India’s population and account for rapidly increasing vehicle demand.
This whitepaper aims to analyze the current status, trends, and challenges of EV penetration in India’s Tier 2 and Tier 3 cities, focusing on key vehicle segments: electric two-wheelers (e-2Ws), electric three-wheelers (e-3Ws), electric cars (e-Cars), and electric buses (e-buses).
Key findings include:
- Tier 2 cities are showing strong momentum in EV adoption, while Tier 3 cities are still in the early stages of market development but show promising potential.
- Substantial increase in E2W and E3W sales in smaller cities, driven by low operating expenses and last-mile delivery requirements.
- Charging infrastructure gaps and financing challenges continue to be key bottlenecks.
- Different EV policies across states have caused some regions to progress faster than others.
- Unlike metros, Tier 2 and 3 cities benefit from shorter commute distances, easier access to home charging, and growing middle-class aspirations—factors uniquely aligned with EV usability and affordability.
The paper also identifies emerging EV hotspots and presents a roadmap for enabling faster, deeper EV adoption beyond the metros. With focused policy support, private investment, and ecosystem collaboration, Tier 2 and Tier 3 cities can become powerful catalysts in India’s green mobility mission.
The whitepaper covers the following content:
- Introduction
- EV Sales Trend Across Cities
- EV Penetration by City Tier
- City-Wise EV Market Share Variations
- EV Segment-Wise Preference Across Cities
- Tier-Wise City Profiles & Adoption Highlights
- Factors Driving EV Penetration Across City Tiers
- Way Forward
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