In FY 23, tier 2 and 3 cities accounted for 49% of 4-wheeler EV registrations, which rose to 58% in FY 24 and an impressive 66% YTD in FY 25.
By: Balaje Rajan
Studies conducted by NOAA (National Oceanic and Atmospheric Administration) reveal that 2024 would be the warmest year on record in their 175-year history. This survey serves as an important reminder to understand that the planet is grappling with extreme weather conditions brought about by climate change. Therefore, it is imperative to reduce the carbon emissions in the atmosphere. India aims to achieve net zero emissions by 2070, for which decarbonisation across sectors is already underway. The transportation segment which accounts for 12% of the nation’s annual emission of greenhouse gases is no exception. Aligned to this objective, electric vehicles (EV) have emerged as a prominent solution to provide clean and sustainable mobility to consumers.
A recent report by Bloomberg NEF suggests tier 2 cities across India are emerging as the demand centres for EVs. This trend is strongly supported by VAHAN registration data: in FY 23, tier 2 and 3 cities accounted for 49% of 4-wheeler EV registrations, which rose to 58% in FY 24 and an impressive 66% YTD in FY 25 – significantly outpacing the growth in tier cities. EVs make even greater sense in tier 2 and 3 cities and towns, where independent homes are the majority, which offer greater accessibility for home charging, as well as opportunities to leverage solar rooftops for zero-cost mobility. With this growing interest in e-mobility beyond metros, the need for well-developed charging infrastructure connecting these cities and towns becomes vital. It is noteworthy how India’s efforts to scale up charging points are well underway, boosting broader adoption for sustainable mobility.
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Growing infrastructure in Tier 2 and Tier 3 towns in India
According to the Ministry of Heavy Industries, India has 12,146 public charging stations in the country, in which Maharashtra constitutes the highest number of charging stations. This is followed by Delhi and Karnataka. Interestingly, the charging network is growing beyond metropolitan areas, extending into Tier 2 and 3 cities, witnessing 96% growth in FY24. In fact, of the current nation-wide fast charging network, 59% charging points are located in these cities and over half of these charging points are close to the national highway system, promoting connectivity and long-distance travel.Â
Kerala has successfully set a benchmark when it comes to charging point connectivity, with chargers installed across all its tehsils – making it the only state in the country to achieve this feat. Such is the connectivity in the state that there is a charger every 25 km radius in each of the 14 districts even down to the sub-district level. Notably, 60% of the chargers in the state are in tier 2 & 3 cities – positioning Kerala as a leader in rural charging connectivity.
Moreover, while OMCs are offering charging facilities at their fossil fuel dispensing stations across the country to consumers, over 80% of chargers in the country have been installed by Charging Point Operators (CPO). It is important to take CPOs along in the journey of electrification, as they can offer digital solutions and new-age customer experience, which is critical to convince fence-sitters to switch to electric. The growth of private CPOs across tier-2 and tier-3 towns is encouraging and bodes well for EV adoption in these cities and towns.Â
To further facilitate the growth of charging points in the country, URDPFI’s (Urban and Regional Development Plans Formulation and Implementation) guidelines state there will be one public charging station every 25 km on both sides of the highways and intercity corridors. Furthermore, after every 100 km on both sides of highways/roads, there will be at least 1 Fast Charging/Float-cum-Boost (FCB) charging station, which may be coupled with public charging stations. These initiatives will further improve access to charging points for EV owners in tier 2 and 3 towns who frequently travel inter-city in their vehicles.
Way forward
As accessibility to e-mobility continues to improve, the supporting infrastructure will expand in-line. With important stakeholders like EV manufacturers, CPOs, OMCs, and the government collaborating to increase charging points across tier 2 and 3 cities, the infrastructure is looking at exponential growth. This will mark a significant step in breaking barriers to EV adoption and aid India’s transition towards achieving carbon neutrality and meeting its long-term ecological goals.
The author is the Chief Strategy Officer, Tata Motors Passenger Vehicles Ltd., and Tata Passenger Electric Mobility Ltd.
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