Tier-II Cities: The Emerging Powerhouses of India's Electric Vehicle Market

Demand for electric vehicles is surging in India’s Tier-II cities, which are now poised to become the next significant growth centers for EVs. A BloombergNEF report highlights rising electric two-wheeler and car sales in these cities, with state capitals leading the charge. Financial subsidies will be crucial to further growth.

As demand for electric vehicles surges, India's Tier-II cities are emerging as pivotal markets for EVs. According to a report by BloombergNEF, electric two-wheeler and car sales in many Tier-II cities have surpassed those in metropolitan areas, with state capitals spearheading this growth.

The report, which analyzed data from 207 cities across 10 states, underscores that while Tier-I cities remain the current hubs of EV demand, adoption in Tier-II cities is advancing rapidly. Factors such as a young demographic with disposable income, the presence of EV cab operators, and a greater variety of available EV models are driving this expansion.

However, most Tier-II cities lack a robust EV ride-hailing market, meaning that sales are primarily driven by private purchases. Despite the absence of significant subsidies, electric vehicle sales have remained steady, hinting at untapped potential that could be unlocked with appropriate policy support.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)