11 July, 2020
Ownership in Logistics: Newer Opportunities for India in a post-COVID World
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Author: Mr. Vivek Srivatsa, Chief Commercial Officer, Tata Passenger Electric Mobility Ltd.
In India, what was once a metro-centric phenomenon is now changing and extending to be a part of the heartlands of India, as Tier 2 and 3 cities are making a switch towards electric mobility. EV adoption in these regions is gradually increasing due to the growth of its infrastructure, a wide range of product options, and growing consumer interest. This transition goes beyond technology; it’s about creating an ecosystem that makes EVs a practical, convenient, and economical option for people across geographies. Additionally, EV ownership is becoming more and more affordable when compared to internal combustion engine (ICE) vehicles, which is speeding up the adoption of electric mobility.
Role of Infrastructure in EV Adoption
The availability of empty land is one of the prime reasons for higher EV adoption in Tier 2 and Tier 3 cities. More space makes it easier to set up charging stations, allowing EV owners convenient access to reliable charging options. And it’s happening fast—as per the Ministry of Heavy Industries, charging stations in these cities shot up by 96% in FY24. Surprisingly, 59% of India’s fast-charging points are now in these areas, making it simpler for EV owners to power up.
Another exciting thing is solar power. Thanks to schemes like the PM Surya Ghar: Muft Bijli Yojana, more homes in small towns and rural areas are getting rooftop solar panels. Pairing these with an EV is a brilliant move—you can charge your vehicle with sunlight, skip expensive fuel, and not worry about rising electricity bills. For families who go this route, running an EV can cost almost nothing day-to-day, which is a huge money-saver. Furthermore, the government and companies are teaming up to build high-speed charging corridors. This means you can take your EV on a road trip without stress, connecting towns and cities like never before.
Extending EV Reach with Longer Range and Better Accessibility
Manufacturers are now producing EVs that can go farther on a single charge and use energy more smartly. This development crucially tackles the worry about running out of power on the road – commonly referred to as “range anxiety”. With charging stations spreading across India, these long-range EVs are starting to replace petrol and diesel cars, especially in smaller cities. The numbers back this up. According to 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 so far in FY25, it’s climbed to 65%.
Government subsidies are also contributing, with simple payment terms, low-interest loans, and subsidies making EVs affordable for middle-class families in these small towns. And EVs are becoming affordable to purchase. With declining battery prices and lower-cost models available, owning an EV is now costing roughly the same as a conventional car in the long term, while saving a great deal of money.
Educating and Engaging Communities for Faster Adoption
To first-time users, new technology is always a bit awkward and confusing, and EVs are no exception. These concerns range from battery life, range, and time to charge. This phenomenon goes across geographies, and clearing any questions is key to increase adoption. Manufacturers are investing towards campaigns and interventions which bust common EV myths and explain the environmental, economical, and social benefit of electrification. Local events, social media, and even influencers are pitching in to show fence-sitters how EVs are a part of their day-to-day life. It’s all about building trust and making EVs feel familiar.
Word of mouth also plays its part. EV owners sharing the reliability and efficiency of the cars with others encourage others to. EV owners on forums and communities online are also brimming with advice, support, and telling it like it is, which encourages others to jump into EVs.
Conclusion
The shift towards electric mobility in India’s Tier 2 and Tier 3 cities marks a pivotal moment in the country’s journey toward sustainable transportation. EVs are no longer limited to metropolitan areas thanks to expanding infrastructure, rising affordability, government assistance, and increased awareness; they are now a sensible and well-liked option for families throughout the heartland. This transition is not just technological, but transformative by democratising premium features for the masses and leading the path towards cleaner air – leading to inclusive development and sustainable growth for electrification across India’s mobility landscape.
Published: 04 May 2025 | Financial Express
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