Tier-2 Cities: The True Growth Engine of India’s EV Two-Wheeler Revolution

India’s electric vehicle (EV) adoption is accelerating at a remarkable pace, and two-wheelers are leading this transformation. In FY2025 alone, India sold about 1.15 million electric two-wheelers, marking a 21.2% growth year-on-year. Today, EV two-wheelers account for nearly 59% of all EV sales in the country. While metros have led the early adoption, the next wave of growth is clearly shifting toward Tier-2 cities, which are proving to be the true growth engine of the EV two-wheeler revolution.

Why Two-Wheelers Dominate India’s EV Market

Two-wheelers are India’s mobility backbone, with more than 200 million scooters and motorcycles on the roads. They are the preferred mode of transport for daily commutes, family use, and last-mile deliveries especially in smaller cities where public transit options are limited. Key factors driving EV two-wheeler adoption: Affordability: With prices ranging from ₹60,000 to ₹90,000 for entry-level scooters, electric two-wheelers are within reach for middle-class households in Tier-2 cities. Low running costs: The cost per km is a fraction of petrol scooters. A typical EV scooter costs just ₹0.25–0.30 per km to run, compared to ₹2–2.5 for petrol. This translates into annual fuel savings of ₹20,000–30,000 for an average commuter. Compact and practical: With ranges of 60–100 km per charge, e-scooters are ideal for short daily commutes in Tier-2 cities where average travel distances are relatively small.

Why Tier-2 Cities Are Leading the Shift

Tier-2 cities—like Jaipur, Lucknow, Indore, Surat, and Coimbatore—are rapidly emerging as the hubs of EV two-wheeler growth. Here’s why:

• High dependence on two-wheelers: In these cities, two-wheelers often make up 70–80% of vehicle ownership, far higher than in metros. Electrifying this segment has an immediate and visible impact.
  
  
• Economic necessity: Middle-income households in Tier-2 regions are highly cost-conscious. With fuel prices rising, EV scooters offer a strong value proposition in terms of savings.
  
  
• Air quality pressures: Many Tier-2 cities rank among India’s most polluted urban areas. Local governments are incentivizing EV adoption to reduce emissions and improve air quality.
  
  
• Last-mile delivery boom: Food delivery, e-commerce, and hyperlocal logistics are expanding beyond metros. EV two-wheelers are being widely adopted by delivery fleets in Tier-2 cities because of their lower operating costs.

Numbers That Tell the Story

• 1.15 million EV two-wheelers sold in FY2025, a 21.2% increase from the previous year.
  
  
• 59% share of all EV units sold in India were two-wheelers.
  
  
• EV penetration in two-wheelers is currently ~10%, but is projected to rise to 40–45% by 2030, largely driven by smaller cities.
  
  
• A typical Tier-2 EV two-wheeler owner saves ₹20,000–30,000 per year on fuel and maintenance compared to petrol users.
  
  

The Road to 2030: Two-Wheelers in Tier-2 Cities

To meet India’s target of 80% electrification of two-wheelers by 2030, Tier-2 cities must take center stage. Automakers are already: Launching affordable, mass-market EV scooters specifically for Tier-2 buyers. Expanding dealership and service networks in mid-sized cities. Partnering with startups to build battery-swapping and charging infrastructure in Tier-2 clusters. Creating financing and leasing models tailored for cost-sensitive households and delivery fleets in smaller cities.

Conclusion

India’s EV revolution will not be defined by metros alone. Tier-2 cities—where scooters and motorcycles dominate the streets—are already showing faster EV adoption rates. With affordability, practicality, and strong government support aligning, EV two-wheelers are poised to become the vehicle of choice for the heart of India. By 2030, when 4 out of every 10 scooters sold in India could be electric, it will be the Tier-2 cities that make this shift possible, proving they are the real growth engine of India’s EV two-wheeler revolution.