Increased adoption of electric vehicles (EVs) in Tier-2 and Tier-3 cities can become a strong driver of India’s clean energy revolution, according to experts from the International Council of Clean Transportation (ICCT) and The Energy and Resources Institute (TERI).
Indians have bought 2.78 lakh EVs since January 2023 at an average of more than 90,000 EVs per month, with the demand not limited to metro cities.
“Smaller cities have the potential to become strong drivers of India’s clean energy revolution. The adoption of EVs in these cities can reduce their carbon footprint and contribute to the ongoing nationwide efforts to combat air pollution and climate change,” Amit Bhatt, Managing Director for India, ICCT, said.
He also said transitioning to EVs in Tier-2 and Tier-3 cities will help lessen India’s dependence on fossil fuels, cut down on import bills, and reduce air pollution. The shift will create a self-reliant and sustainable energy ecosystem that will contribute significantly to the country’s economic growth.
The adoption of EVs in smaller cities will create new business opportunities and job opportunities in sectors such as manufacturing, supply chain, and charging infrastructure, which will drive the economic growth and development of these regions.
To ensure that the adoption of EVs in smaller cities happens, it is essential to address challenges such as the lack of charging infrastructure, the need for greater awareness among consumers, and the need to develop local supply chains and manufacturing capabilities for EVs.
According to Sharif Qamar, Associate Director and Area Convenor, Transport and Urban Governance Division, TERI, there are seven areas of focus for accelerating adoption of EVs across different geographies, including institutional and policy readiness, infrastructure readiness, technology readiness, economic readiness, social readiness, environmental readiness, and innovation readiness.
An ambitious vehicle electrification pathway under which EVs could reach 95 per cent of all new vehicle sales by 2040 can help reduce tailpipe emissions by 18-50 percent, depending on the pollutant.
The momentum for EVs in India results from a combination of various factors, including increasing concerns over air pollution and climate change, central government incentives and policies, declining costs of EV batteries, advancements in technology, and growing investments by domestic and international players in EV manufacturing and charging infrastructure. Together, these elements are paving the way for a clean, sustainable future of transportation in the country.
