Electric Vehicle Demand Surges in Tier 2 Cities, Narrowing Gap with Metros: Report

ENA Sectors 2024-07-04 14:33:22 New Delhoi, Jul 4 (KNN) In a significant shift in India's electric vehicle (EV) landscape, tier 2 cities are emerging as the new frontiers for EV adoption, according to a recent report by BloombergNEF. The analysis, covering 207 cities across 10 states, reveals that the demand gap between large metropolitan areas and mid-sized cities is rapidly shrinking. The report showcases a remarkable trend where electric two-wheeler sales in some tier 2 markets have outpaced those in major metros. State capitals in tier 2 cities are leading the charge in electric car sales growth. Among tier 1 cities, Bengaluru stands out as the leader in EV adoption for both passenger vehicles and two-wheelers. Jaipur's performance is particularly noteworthy, accounting for over 79 per cent of electric cars sold in Rajasthan's five analysed tier 2 cities. Other tier 2 success stories include Surat and Jaipur surpassing Ahmedabad, Mumbai, and Chennai in electric two-wheeler sales. Lucknow, Thiruvananthapuram, and Gurugram also demonstrated significant growth in electric car sales. An interesting aspect of this growth is that it's primarily driven by private uptake in tier 2 cities, which lack the robust EV ride-hailing market seen in larger cities. This trend has persisted even after several states exhausted their subsidy limits mid-year. The annual growth rates of high-speed electric two-wheeler sales in tier 2 and tier 3 cities (51 per cent and 30 per cent respectively) outpaced those in tier 1 cities. This shift is attributed to automakers rapidly expanding their sales and dealership networks in smaller cities, improving consumer awareness and access. However, the report suggests that financial support will be crucial for driving adoption in tier 3 cities. As the focus shifts to less affluent areas, demand-side policy support, especially financial subsidies, will be necessary unless EV prices decrease significantly to achieve cost parity with gasoline vehicles. This evolving landscape presents both opportunities and challenges for the Indian EV market, signalling a potential democratization of electric mobility beyond metropolitan hubs. The trend indicates a broader acceptance of electric vehicles across diverse urban centres in India, potentially reshaping the future of transportation in the country. (KNN Bureau) 38469 https://knnindia.co.in/news/newsdetails/sectors/electric-vehicle-demand-surges-in-tier-2-cities-narrowing-gap-with-metros-report 2024-07-04 14:33:22 knnindia.co.in Electric Vehicle Demand Surges in Tier 2 Cities, Narrowing Gap with Metros: Report