Wednesday, October 1, 2025

The Rise of Electric Mobility in India’s Tier-2 Cities

In India, electric vehicles (EVs) are changing the way people travel in the future. Tier-2 cities like Jaipur, Lucknow, Indore, and Coimbatore are now becoming the new frontiers of India's EV revolution, although metros like Delhi, Bengaluru, and Mumbai initially led the way. This change represents a more thorough shift away from metropolitan centres and towards sustainable mobility.



159.1) The Changing Landscape

In recent years, the EV market in India has expanded rapidly. In FY 2023–2024, EV sales surpassed 1.7 million units, a 45% increase over FY 2023–2024, according to the Ministry of Heavy Industries. Due to government incentives, rising gasoline prices, and improved affordability, smaller cities are now responsible for a large portion of this development.

In Tier-2 cities, local transportation fleets—particularly e-rickshaws, delivery scooters, and shared mobility vehicles—are driving adoption. By providing simpler financing and battery-swapping alternatives, platforms like as Ola Electric, Ather Energy, and Hero Electric have extended their dealership networks into semi-urban areas.

159.2) Why Tier II cities matter?

Tier-2 cities offer more controllable infrastructure and consumer flexibility than major metro areas, where space and traffic are significant obstacles. EVs are also more appealing as long-term investments due to the decreased cost of living. States like Gujarat, Tamil Nadu, and Uttar Pradesh have implemented state-level EV policies that provide grants for charging infrastructure, tax exemptions, and subsidies.

Additionally, smaller cities are developing into centres for EV assembly and manufacturing. Global companies like VinFast, Foxconn, and suppliers to Tesla are investing in Tamil Nadu and Gujarat in particular.

159.3) Challenges

The largest obstacle is still the development of charging infrastructure. Even though charging stations are supported under the FAME-II initiative, many Tier-2 cities still depend on private companies to install them. Better awareness and regulation are also needed for battery recycling and disposal.

Particularly in areas with harsh weather, consumers remain sceptical about battery range and resale value. These obstacles should, however, diminish as costs decrease and technology advances.

159.4) Future Outlook

The degree to which smaller cities successfully incorporate electric mobility into daily life will determine the next stage of India's EV growth. Infrastructure development can be accelerated by partnerships between startups, commercial businesses, and municipal governments. Furthermore, advancements like localised energy grids and solar-powered charging stations might increase the sustainability of EV adoption.

India's shift to electric mobility is not limited to affluent cities; rather, it is extending throughout the country's interior. Tier-2 cities are demonstrating that inclusive progress and grassroots innovation are the first steps towards a cleaner future.

Team Yuva Aaveg-

Adarsh Tiwari

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