EV Adoption In Tier 2 And Tier 3 Cities Grows

EV Adoption In Tier 2 And Tier 3 Cities Grows

It is early afternoon as the Shatabdi train rolls into Amritsar from Delhi. An army of electric passenger three-wheelers greet the travellers as they come out the station and head to their respective destination. The other choice the travellers who have walked out of the station is the bigger diesel autorickshaws. Ironically, the diesel autorickshaws that can seat more passengers have been slowly making space for the electric three-wheelers because the latter are starting to make a more viable business case.  

First is the ability of many to beat the higher entry barrier of diesel autorickshaws in terms of the acquisition price. The second is the running cost of a diesel rickshaws per day, which is more than that of an electric passenger three-wheeler. Third is the lower maintenance of an electric three-wheeler as compared to the that a diesel autorickshaw. Petrol or CNG autorickshaws are still not preferred in many Tier 2 and Tier 3 cities for reasons that are more on the side of perception than actual. The CNG autorickshaws especially have been known for their unreliable operation when the respective technology was just getting off the ground in the country.  

Interestingly, the tiny streets and bylanes of Amritsar make a case for the seemingly punny electric passenger three-wheelers over their wider and mightier looking counterparts with IC engines. This is not just the case with Amritsar, which is one of the bigger cities in India, but with many other cities – smaller Tier 3 cities were earning potential and purchasing power is less. The electric passenger three-wheelers and electric cargo three-wheelers finding higher acceptance in smaller cities as they beat the conventional auto rickshaws in operating costs per day and per month, it should not come as a surprise that that electric vehicles have been witnessing a strong growth. The basis of operating costs per day and per month is driving a shift towards electric and hybrid vehicles in both the commercial and personal domain. In the personal vehicle domain, it is the electric two-wheelers that are leading the charge.  

In 2022, they witnessed strong growth in India in particular – to the tune of a threefold sales increase almost. The official data for 2022 shows that Indians bought 27.8 billion EVs since January 2023 at an average of more than 90,000 EVs per month. Amit Bhatt, Managing Director for India, International Council of Clean Transportation (ICCT), expressed, “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. Transitioning to EVs in Tier-2 and Tier-3 cities will also help in lessening India’s dependence on fossil fuels, cutting down on import bills, and reducing air pollution. This 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. This, in turn, will drive the economic growth and development of these regions. Wide-scale participation of Tier-2 and Tier-3 cities in India’s EV transition will help greatly in creating a greener nation. To ensure that this 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,” he added. 

Sharif Qamar, Associate Director and Area Convenor, Transport and Urban Governance Division, The Energy and Resources Institute (TERI), reckoned, there are seven areas of focus for accelerating adoption of EVs across different geographies – institutional and policy readiness; infrastructure readiness; technology readiness; economic readiness; social readiness; environmental readiness; and innovation readiness.
“It is an incredibly steep technology curve that the industry has traversed in the past 6-7 years. This has enhanced the comfort, trust, and reliability of the EV ecosystem in the eyes of consumers, for all vehicle segments – three-wheelers, four-wheelers, buses, and small commercial vehicles – albeit at different levels. As the penetration of renewable energy in the power grid increases, the efficacy of EV technology in dealing with well-to-wheel emissions will be higher and its contribution to climate goals greater,” he explained.  

As per the official estimates by ICCT, an ambitious vehicle electrification pathway – under which EVs could reach 95 percent of all new vehicle sales by 2040 – can help in reducing tailpipe emissions by 18-50 percent, depending on the pollutant. Other than the factor of operating costs, the rise in EVs in India is also influenced by central government incentives and policies, including the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles scheme, state-level EV policies, declining costs of EV batteries, technology advancements and growing investments by domestic and international players in EV manufacturing and charging infrastructure.

Image source: @ImrajAhmed9

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    Greenway Mobility Launches Two E3Ws Under Flagship E-Vi Brand

    Greenway Mobility Launches Two E3Ws Under Flagship E-Vi Brand

    Greenway Mobility, an Indian EV manufacturing company, has launched two electric three-wheelers, Chhota Otto and Chhota Bull, under its flagship E-Vi brand.

    The Chhota Otto has folding seats to free up passenger room for freight transportation and separate suspensions on all three wheels for improved comfort and stability. The Chhota Bull, on the other hand, is built for last-mile delivery in difficult terrain. It has a huge 400-kilogramme payload capacity, hydraulic brakes and IoT-enabled fleet management for efficiency and real-time tracking. Both the Chhota Otto and Chhota Bull are priced at INR 200,000 and will be available in the market by the 4th quarter of FY24.

    In keeping with its core objective of dominating the electric three-wheeler market by December 2025, Greenway Mobility has embarked on an ambitious expansion project with the launch of E-Vi, aiming to open more than 100 dealerships in key Indian markets by the end of this year. Additionally, the company is getting ready to introduce Rydan, a fast passenger electric rickshaw designed to offer affordable green mobility options in both urban and rural regions of the nation. In addition to making considerable R&D efforts to add electric bikes, trikes and tiny electric automobiles to its lineup, the firm is open to forming strategic alliances with distributors and partners.

    Siddharth Patel, Founder, Greenway Mobility and an IIT Bombay and Cornell Johnson Graduate School of Management alumnus, said, “India needs mobility solutions that are not only sustainable but also robust and reliable enough to meet the demands of both bustling cities and rural landscapes. Through E-Vi, our aim extends beyond electrifying India’s three-wheeler mobility, creating a robust distribution channel with strategic partners to ensure unprecedented growth, driven by quality and excellence. We are establishing strategic industry collaboration to supplement this entire ecosystem to benefit the end use – addressing concerns like accessibility, nationwide service network, affordable financing options, swappable batteries and charging networks.”

    Asserting that the E-Vi will transform how three-wheeler mobility is perceived in India, Harsh Raval, Founder, Greenway Mobility, said, “At Greenway Mobility, we have engineered every aspect of E-Vi vehicles to ensure they excel where others falter. Our goal is to provide vehicles that drivers can trust – vehicles that empower them to do more, go farther and achieve greater success. Maintaining quality is of utmost importance to us and we are sourcing components from only the top Indian suppliers. With our growing portfolio of electric vehicles, we are shaping the future of mobility.”

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      Tata Motors To Supply Additional 148 Starbus Electric Buses To BMTC

      Tata Motors To Supply Additional 148 Starbus Electric Buses To BMTC

      Bengaluru Metropolitan Transport Corporation (BMTC) has placed an extra order for 148 electric buses from Tata Motors, the biggest commercial vehicle manufacturer in India. This purchase comes after BMTC placed an earlier order for 921 electric buses, the majority of which have been delivered and are operating effectively with an uptime of more than 95 percent.

      The Tata Starbus EV 12-metre low-floor electric buses will be supplied, operated and maintained for a term of 12 years by TML Smart City Mobility Solutions Ltd, a completely owned subsidiary of Tata Motors. With its best-in-class features and outstanding design, the Tata Starbus EV offers a pleasant and environmentally friendly commute. These zero-emission electric buses are built on cutting-edge battery technologies and next-generation design to provide a convenient, safe and comfortable intra-city journey around Bengaluru.

      Ramachandran R, IAS, MD, BMTC, said, "We are happy to further strengthen our partnership with Tata Motors with these additional 148 electric buses for our fleet modernisation. The performance of the existing Tata electric buses has been exceptional, aligning perfectly with our commitment to sustainable and efficient public transportation. The larger e-bus fleet will significantly enhance our capacity to provide eco-friendly, comfortable and reliable services to the citizens of Bengaluru."

      Asim Kumar Mukhopadhyay, CEO and MD, TML Smart City Mobility Solutions Limited, said, "We are honoured by BMTC's continued trust in our e-mobility solutions. This additional order of 148 buses is a testament to the proven success of our Starbus EVs and the operational excellence delivered in Bengaluru's urban environment. We remain committed to delivering innovative solutions that benefit both the community and the environment."

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        Maruti Suzuki India e Vitara Teased, Launch At Bharat Mobility Global Expo 2025

        Maruti e Vitara

        Maruti Suzuki India (MSIL), the country's largest passenger vehicle manufacturer, has shared the teaser image for its first electric vehicle product - the e Vitara.

        Set to be unveiled at the Bharat Mobility Global Expo 2025, the e Vitara will be made in India for the world. It was recently unveiled by Suzuki Motor Corporation at Milan, Italy.

        Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India, said, “The e Vitara is a testament of our unwavering commitment to sustainable mobility and technological innovation. With decades of automotive expertise, we have combined advanced electric technology with a customer-first approach to deliver something truly transformative. At Maruti Suzuki, we have always believed that to promote EV adoption, we need to create a holistic ecosystem that simplifies customers' battery electric vehicle ownership journey.”

        “A critical barrier to the adoption of EVs is the lack of accessible charging. To tackle this issue, we are committed to introduce a reliable and comprehensive EV ecosystem alongside the e Vitara. This will include home charging solutions as well as a nationwide network of fast chargers available at Maruti Suzuki dealerships and service touchpoints. Our goal is to make EVs accessible, convenient, and appealing to a broader set of customers, and this is exactly what we have set out to achieve with the e Vitara,” he added.

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          WardWizard Sees 24% Sales Growth In FY2026; New Launches To Drive Retail Performance

          WardWizard

          ​​Vadodara-headquartered electric vehicle company WardWizard Innovations & Mobility recently launched its new range of EV offerings, which it expects to give a new charge to its retail sales.

          It was on 13 December 2024 the Joy e-rik V1 (L5) and Joy Bandhu (L3) electric three-wheelers in the passenger category and Joy Sahayak + Cargo (L5) and Joy Eco Loader (L3) in the electric three-wheeler cargo space were launched by the EV maker, thus marking its entry into the fast-growing electric three-wheeler space.

          The Joy e-rik V1, priced at INR 385,000 (ex-showroom), comes with 10.24 kW li-ion battery, 50 kmph max speed and 140 km claimed range on a full charge. It can be charged in 4.5-5 hours using the 50 Amp charger.

          The Joy Bandhu priced at INR 134,000, uses a 7.2 kW lead-acid battery, has a claimed range of 120 km and top speed limited to 25 kmph.

          On the other hand, the Joy Sahayak + Cargo, priced at INR 424,000, is targeted for payload capacity of 650 kg + driver, max speed of 50 kmph, up to 130 km range on a single charge. It uses a 10.2 kW LFP li-ion battery and can be charged in four hours using 50 Amp charger. The Joy Eco Loader, on the other hand, comes with a payload capacity of 310 kg + driver and is priced at INR 130,000.

          At present, electric three-wheeler sales in India are averaging 56,674 units a month (CY 2024) as compared to 47,204 units last year. What’s also driving the sales is the government incentives like the Centre’s PM E-Drive scheme that provides demand incentives to support purchase of 316,000 e-three-wheelers including e-rickshaws. They are entitled to a subsidy of INR 25,000 in the first year and INR 12,500 in the second year. For the L5 category (cargo e-three-wheelers), the incentive is INR 50,000 per unit in the first year and INR 25,000 the next.

          For the Vadodara-based EV maker, the idea to enter the electric three-wheeler space is on the back of the growing demand for greener last-mile delivery as well as last-mile mobility connectivity options.

          Interestingly, it has already onboarded 27 dealerships that will focus on selling electric three-wheelers. Furthermore, it will also provide preference for its around 900 existing dealer and network partners to sell its new offerings.

          For FY2025, WardWizard Innovations & Mobility estimates to sell around 50,000 units of electric vehicles across electric two-wheelers (low speed and high speed) and three-wheelers (L3 & L5) in India. It estimates that the sales will grow by 22-24 percent YoY in FY2026.

          While it has recently entered the e-three-wheeler space, the company expects the new products to have around 30-35 percent share in its overall sales starting from FY2026.

          On the other hand, reducing its reliance on low-speed electric two-wheeler category, the company also introduced a new high-speed e-scooter ‘Nemo’. Priced at INR 99,000 (ex-showroom), it comes with a 40 Ah NMC li-ion battery and a 1,500W DC brushless hub motor that gives it a max speed of 65 kmph. It has a claimed range of 130 km on a single charge in Eco mode. The e-scooter uses a digital speedometer, 5-inch full-colour TF display and projector LED headlight. The company has targeted a modest 2,000 units sales for Nemo in the next three months.

          The EV maker currently has an installed capacity to produce 73,000 electric two-wheelers, 7,300 L5 electric three-wheelers and 18,250 L3 electric three-wheelers per annum. The company claims that apart from some plastic components and cells being imported, everything has been localised.

          It further aims to start manufacturing its own batteries in the next one year in Vadodara, for which the pilots are underway.

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          • Laxman Hastekar
            - Laxman Hastekar

            How many dealer you been appointed in Maharashtra and in which city , pl. name it Thanks

            Reply