Mitigating traffic jams is a critical step for the betterment of the urban transportation system, which comprises a large number of interconnected routes to form an intricate network. To understand distinct features of vehicular traffic flow on a network, a macroscopic two-dimensional traffic network model is proposed incorporating intra-nodal and inter-nodal vehicular interaction. Utilizing the popular techniques of nonlinear dynamics, we investigate the impact of different parameters like occupancy, entry rates, and exit rates of vehicles. The existence of saddle-node, Hopf, homoclinic, Bogdanov–Takens, and cusp bifurcations have been shown using single or biparametric bifurcation diagrams. The occurrences of different multistability (bistability/tristability) phenomena, stochastic switching, and critical transitions are explored in detail. Further, we calculate the possibility of achieving each alternative state using the basin stability metric to characterize multistability. In addition, critical transitions from free flow to congestion are identified at different magnitudes of stochastic fluctuations. The applicability of critical slowing down based generic indicators, e.g., variance, lag-1 autocorrelation, skewness, kurtosis, and conditional heteroskedasticity are investigated to forewarn the critical transition from free flow to traffic congestion. It is demonstrated through the use of simulated data that not all of the measures exhibit sensitivity to rapid phase transitions in traffic flow. Our study reveals that traffic congestion emerges because of either bifurcation or stochasticity. The result provided in this study may serve as a paradigm to understand the qualitative behavior of traffic jams and to explore the tipping mechanisms occurring in transport phenomena.