Mahindra turns spotlight on Tier 2 cities as Bhubaneswar Indore and Jaipur emerge as surprising new hubs for electric vehicle adoption

For years, India’s EV growth story has been largely centred around metro cities like Delhi, Mumbai, Bengaluru and Hyderabad. But Mahindra & Mahindra now believes the next big leap in electric mobility will come from Tier 2 cities, where consumer readiness and infrastructure are aligning faster than expected.

Nalinikanth Gollagunta, CEO of Mahindra’s automotive division, revealed that smaller markets such as Bhubaneswar, Indore, Jaipur and even Meerut are witnessing strong EV traction. Customers here often live in independent houses with dedicated parking, making home charging easier. Daily commutes are shorter, highways are improving, and many buyers fall in the ₹20 lakh-plus bracket, which makes the EV transition smoother.

Mahindra has recently launched models like the BE 6 and XEV 9e, designed to cater to both urban and semi-urban buyers. The company sees Tier 2 demand as a structural shift that could accelerate EV penetration beyond the current 5% industry share. Unlike metros, where high-rise living can complicate charging access, smaller cities are providing a natural advantage for EV uptake.

While metros remain critical for brand visibility and early adoption, Mahindra’s focus on Tier 2 India reflects a broader trend of EV demand spreading beyond the top urban centres. As infrastructure and awareness improve, these cities could play a pivotal role in mainstreaming electric mobility across the country.

The company’s strategy highlights an important inflection point: India’s EV growth may no longer be confined to large cities but instead be powered by aspirational buyers in emerging markets. For automakers, this means rethinking distribution, charging partnerships, and product offerings to match the unique needs of these regions.