Expanding reach of EVs in Bharat

WHAT WAS ONCE a metro-centric phenomenon is now changing, as tier 2 and 3 cities are making a switch towards electric mobility.

- Vivek Srivatsa

EV adoption in these regions is increasing thanks to better infrastructure, wider product range, and growing consumer interest.

starting to replace ICE cars, especially in smaller cities. The numbers back this up. According to the VAHAN registration data, in FY23, nearly half (49%) of four-wheeler EVs were registered in tier-2 and tier-3 cities. That went up to 58% in FY24, and almost 65% in FY25. Subsidies are also contributing, with simple payment terms, low-interest loans, and subsidies making EVs affordable for middle-class families. With declining battery prices and lower-cost models available, owning an EV is almost the same as ICE cars in the long term.