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

Epsilon CAM Advances Gen 3.0 LFP Cathode Validation With Global Cell Manufacturers

Epsilon CAM

Epsilon CAM, the cathode materials business of Epsilon Group, has entered customer validation testing for its Gen 3.0 Lithium Iron Phosphate (LFP) Cathode Active Material with battery cell manufacturers across the Asia-Pacific region, Europe and the United States.

The material, launched in April 2026, records a discharge capacity of 159 mAh/g and an electrode density of 2.51 g/cc or higher. These metrics match performance benchmarks established by Chinese producers, who have historically supplied the majority of LFP cathode materials to international markets.

Epsilon CAM plans to construct a manufacturing facility with an annual capacity of 20,000 tonnes per annum (TPA) by 2028, with targets to expand output to 100,000 TPA. The expansion aims to position the company as an alternative supplier of cathode active materials outside of China.

Vikram Handa, Managing Director, Epsilon Group, said, "The global battery industry is entering an era where technology leadership must be complemented by resilient and diversified supply chains. The advancement of our Gen III LFP cathode material into customer validation with large global cell makers shows our commitment to providing cell manufacturers with high-performance, globally competitive and supply chain-resilient cathode solutions."

Product engineering for the material is conducted at Epsilon CAM's Cathode Technology Centre in Moosburg, Germany. The research hub operates alongside a 250 TPA pilot manufacturing facility and holds 149 patents in cathode chemistry, materials science and process engineering.

The non-Chinese origin of the technology and its manufacturing processes complies with United States Prohibited Foreign Entity (PFE) regulations regarding battery material provenance. This compliance provides automotive original equipment manufacturers and cell producers with a supply chain option that aligns with North American and European regulatory frameworks for electric mobility and energy storage products.

E3 Electric.AI Debuts India's First AI-Powered Intelligent Electric Scooter, the E3 TRION

E3 Electric.AI Debuts India's First AI-Powered Intelligent Electric Scooter, the E3 TRION

E3 Electric.AI, a Bengaluru-based electric mobility startup, has officially entered the passenger scooter segment with the launch of the E3 TRION, a vehicle positioned as India’s first artificially intelligent electric scooter. The company unveiled the model as a new category contender, combining human-centric design with predictive intelligence and a modular architecture that enables continuous learning and adaptation over time.

The E3 TRION is built on the proprietary TRIAXISFRAME modular platform, which supports both portable and fixed battery configurations. This scalable architecture allows for multiple variants, namely the C1 with a removable battery, the C1x offering an IDC range of 165 kilometres from a three-kilowatt-hour pack and the C2 variant that achieves a top speed of 82 kmph and accelerates from 0 to 40 kmph in six seconds in Sport mode.

Central to the scooter’s intelligence is the E3 COMMANDCENTER, which includes the proprietary intelligent IoT core and cloud-based monitoring systems. This setup continuously tracks each connected vehicle, predicts potential failures before they occur, enables proactive servicing and delivers over-the-air software updates. With each ride, the system accumulates data to refine its responses, creating an evolving ownership ecosystem aimed at increasing rider confidence.

The rider interface is managed through the TRIPSENSE Intelligent Cockpit, featuring a five-inch INSIGHT DISPLAY that pairs with a smartphone for a unified experience. The system provides navigation, charging insights and AI-powered alerts, while the broader suite of over 100 intelligent functions includes a 10-second diagnostic health scan, predictive reports, a smart trip planner with charger locator, remote battery monitoring, dashcam capability, SOS assistance and geo-fencing.

Practical usability for Indian families remains a key focus, with the scooter equipped with 14-inch TRAKWHEEL wheels for improved grip and stability across varied terrains. The vehicle also features IP67 weather protection, safeguards against voltage fluctuations and the LIGHTIQ intelligent lighting system with dual projector LED headlamps and signature rear lamps. Ergonomics are addressed through ERGORIDE principles, optimising six contact points for natural visibility and comfort, while combined storage across the boot, floorboard and glove box totals up to 52 litres.

Powertrain options include a 2.3-kilowatt-hour portable VOLTPORT battery and a three-kilowatt-hour fixed battery, both using durable LFP chemistry and engineered for up to eight years of real-world use. The high-efficiency PMSM hub motor incorporates ROTORING and a detachable rim for faster servicing. Available in six colour options with various accessories, the E3 TRION is priced at an introductory ex-showroom Bengaluru rate of INR 109,999 for the C1x and INR 119,999 for the C2 variant.

Sanjeev P, Founder & CEO, E3 Electric.AI, said,"E3 Trion isn't an electric scooter with an app bolted on. It is built with AI at its core, human centric engineering and a modular future-ready platform. Every problem that's held Indian families back from going electric – range anxiety, safety, service, cost – is something we designed around from day one. We didn't want to build just another electric scooter; we set out to build an electric scooter where predictive intelligence is core to the architecture. The E3 Trion has been crafted keeping Indian families in mind, where daily commuting demands reliability, practicality and peace of mind. By making the technology adaptive and the experience intuitive, we want everyday travel to feel smoother and more dependable. This is a meaningful step towards mobility that's not only efficient but genuinely aligned with what modern Indian riders expect."

VinFast Auto India Celebrates 60th Dealership With First Bihar Outlet In Patna

VinFast Auto India Celebrates 60th Dealership With First Bihar Outlet In Patna

VinFast Auto India has inaugurated its 60th retail outlet, a new 3S dealership in Patna, Bihar, marking the company’s first foray into the eastern state. The facility, established by Patliputra Motors Private Limited and led by Harsh Raj, is strategically positioned on NH-30, Bypass Road, to serve as a key access point for regional customers. This milestone comes just one year after the automaker opened its first Indian showroom, underscoring the rapid scaling of its commercial footprint.

Spanning 11,500 square feet, the Patna facility adheres to VinFast’s global retail standards and integrates vehicle sales, after-sales services and customer support within a single premises. A 3,000-square-foot modern showroom allows visitors to interact with the electric vehicle lineup, while dedicated professional teams manage the entire ownership journey. The one-stop destination is designed to handle everything from initial discovery and purchase to ongoing maintenance and care.

The expansion into Bihar reflects VinFast’s deliberate strategy to penetrate tier 2 and tier 3 markets alongside major metropolitan hubs, with Patna serving as a critical gateway to eastern India. The company remains on track to reach 75 dealerships across more than 60 cities by the end of 2026. Beyond retail growth, VinFast is concurrently bolstering its domestic ecosystem through local manufacturing, charging infrastructure and strategic partnerships to support India’s sustainable mobility transition.

The company’s premium electric SUVs, the VF 6 and VF 7, have achieved 5-star Bharat NCAP safety ratings and come with comprehensive benefits, including roadside assistance, three years of complimentary maintenance, and warranties up to 10 years or 200,000 kilometres. The seven-seater VF MPV 7 offers a 517-kilometre ARAI-certified range and fast-charging capability. Customer incentives include the Value Assured Programme for buyback guarantees, complimentary charging on the V-Green network until 2029 and a ‘Trade Gas for Electric’ initiative to facilitate the switch from internal combustion engine vehicles.

Tapan Ghosh, CEO, VinFast India, said, “We are delighted to mark the milestone of 60 dealerships in India while establishing VinFast’s presence in Bihar for the first time. This marks an important step in our growth journey and opens up new opportunities in a promising market in eastern India. VinFast remains committed to building a strong retail and after-sales network and accelerating the adoption of green mobility across the country.”

Aravind Mani and Vipin George at River Factory, Hoskote.

Bengaluru-based electric two-wheeler manufacturer River Mobility has closed a USD 120 million Series C funding round comprising equity and venture debt.

The funding round was led by Elev8 Venture Partners and Claypond Capital, with equity participation from Singularity AMC, Anicut Capital, 360 ONE Asset, JIF Capital and HDFC AMC. Existing investors including Yamaha Motor Corporation, Al Futtaim Group, Mitsui & Co., Alteria Capital, Innoven Capital and Stride Ventures also participated in the round.

The company plans to utilise the capital to expand manufacturing capacity at its factory, construct a greenfield production facility, introduce products in the utility vehicle segment and support margin expansion and EBITDA targets.

River Mobility launched its Indie model in 2023 and operates over 75 retail locations across India, with plans to expand to 350 stores by March 2028.

At present, the company says its monthly EV sales have reached 5,000 units.

Aravind Mani, Co-Founder & CEO, River Mobility, said, "This funding marks an important milestone in River's journey. The confidence shown by both our existing and new investors reinforces our belief that there is tremendous opportunity to build India's first utility and design based mobility brand. This capital gives us the ability to accelerate our product roadmap, expand our manufacturing footprint and presence across the country."

Navin Honagudi, Managing Partner, Elev8 Venture Partners, said, “The electric two-wheeler market in India is entering a defining growth phase, driven by strong consumer adoption, improving economics, and increasing demand for differentiated products. River stands out for its sharp product thinking, exceptional execution capability, and a highly differentiated positioning in the market. Aravind, Vipin and the team have built a brand that resonates deeply with consumers looking for brilliant design, utility and durability. We believe River is well-positioned to emerge as one of the defining EV companies from India.”

Sekhar Garisa, Managing Director, Claypond Capital, said, “River has combined disciplined execution and thoughtful product differentiation to rapidly grow and garner customer love in a competitive market. We are excited to support the team as they scale further while contributing to the country’s energy transition and domestic manufacturing ambitions.”

Hajime Jim Aota, Chairman of Yamaha India Group, said, “River’s focus on building vertically integrated electric vehicle technology platform has been a key driver of its success. Yamaha are proud to see the progress made by River so far and are excited about being part of the next phase of growth.”