India Electric Bus Market Size and Share Analysis by Type (Battery Electric Bus, Hybrid Electric Bus), Length (Less Than 10 m, More Than 10 m), Battery (Lithium–Iron Phosphate, Lithium–Nickel–Manganese–Cobalt Oxide), Application (Intercity, Intracity) -Industry Revenue Estimation and Demand Forecast to 2030

Market Overview

The Indian electric bus market size estimated at $603.1 million in 2022, and it is expected to grow at a CAGR of 21% during 2022–2030, to reach $2,766.1 million by 2030.

The Indian bus industry has witnessed significant growth in recent years. Moreover, India is witnessing rapid urbanization, which is leading to the increasing demand for public transportation. Further, due to the rising environmental concerns and the need to curb emissions from automobiles, electrically powered buses are becoming a favorable option.

The Government of India is also taking numerous initiatives to encourage the usage of electricity-powered buses in the country. The National Electric Mobility Mission Plan (NEMMP) 2020 was launched by the government in 2013 to boost the manufacturing of hybrid and EVs in India and increase their adoption, by offering attractive incentives. Further, the government invested $12.5 billion (INR 80,000 crore) under the Green Urban Transport Scheme 2017 to enable the shift toward EVs for public transportation.

Moreover, the Bharat Stage (BS) VI emission norms were introduced in 2020. With this, India’s automobile industry will need to adopt concrete emission control measures, which would further act as a catalyst for the demand for such vehicles.

Moreover, domestic manufacturing growth is a key driving factor for the market. The government's need for more-energy-efficient automobiles and the stringency of the emission standards have caused original equipment manufacturers (OEMs) to turn their attention to alternative-fuel vehicles.

The COVID-19 epidemic has had a huge effect on almost all industries across the country, including automotive and transportation. In tune, e-bus sales in India were hampered by the shutdown of plant operations, as well as the lower demand for transportation during this pandemic.

Rapid Urbanization and Growing Environmental Awareness

India is the second-most populated country in the world, trailing China. The national population figures continue to grow and so does the number of vehicles (both passenger and commercial). The emissions from these vehicles are deteriorating the air quality, which is becoming a serious health concern. In the light of this, the government has already switched from the BS IV emission standards to the BS VI emission standards 2020 onward.

At the same time, the urban population in India has escalated rapidly over the past decade. As a result, the dependence on public transport and the need for sustainable transport systems have increased considerably in recent years.

The government is, therefore, promoting zero-emission buses through various environmental awareness campaigns. Several environmental organizations are also focusing on awareness programs, to bring about a change in the preference of people and help the government achieve its objective of cutting the carbon footprint. These efforts are expected to drive the production and sale of such vehicles in the country in the near future.

Battery Electric Buses Have Larger Share

The BEB market held the larger share, over 90%, in 2022, owing to the availability of subsidies, incentives, and other financial benefits, to promote the usage of eco-friendly buses.

The demand for BEBs in India is rising along with that for low-emission public transportation. Moreover, the government at the central and state levels has implemented numerous programs to reduce GHG emissions. Additionally, the expansion of the EV charging infrastructure and the enhancements in the battery technology are driving the electric bus demand in the nation.

Northern Part of India Has Highest Rate of Adoption of Electric Busses

Electric bus sales in North India are expected to grow with the highest CAGR in the forecast period, of more than 60%, owing to the support provided by the state governments to boost the adoption of these vehicles. The market growth in the region is mainly driven by the high pollution level in the country’s capital, Delhi.

The Delhi government is planning to deploy electrically powered coaches in a phased manner in the capital. Delhi aims to become the first city in India to have 8,000 electrically powered coaches in its public transport fleet, as part of which, in the August of this year, the DTC added 97 such automobiles. Additionally, the government offers different types of financial incentives to make EVs more affordable for private operators.

Apart from Delhi, other states in the region are also actively working toward the deployment of electric buses. For Instance, the Uttar Pradesh Cabinet has approved a new EV policy in September 2022, which aims to make the state a global hub for the manufacturing of EVs, batteries, and associated equipment. Moreover, a 15% rebate will be given on the purchase of electric two-/three/four-wheelers, including buses.

Explore more about this report - Request free sample pages

Rising Number of Collaborations between Domestic and International OEMs

With the Indian government’s implementation of stringent regulations on vehicular pollution, the demand for low-emission public transportation has been rising in the country.

As electrically powered buses are being promoted and supported through financial incentives by the government, conventional buses are expected to be phased out in the coming years. Anticipating the surging demand for electric buses in India, international players, such as Optare PLC (U.K.), Solaris Bus & Coach S.A. (Poland), Zhongtong Bus Holding Company Limited (China), and BYD Auto Company Limited (China), have entered into tie-ups with domestic players, such as Ashok Leyland Limited, JBM Auto Limited, Deccan Auto Limited, and Olectra Greentech Limited, to set up vehicle assembly facilities in the country.

Besides, Chinese original equipment manufacturers (OEMs) are looking to start operations in India, having already held talks with the concerned industry bodies, such as the Automotive Component Manufacturers Association (ACMA) and the Society of Manufacturers of Electric Vehicles (SMEV). The Indian electric bus market is expected to grow significantly in the future and is, therefore, attracting Chinese OEMs, such as Changsha Sunda New Energy Vehicles Technology Company Limited, for business growth through collaborations with domestic players.

Lithium–Iron Phosphate (LFP) Category To Witness Fastest Growth

Based on battery type, the LFP category accounted for the major share, over 80%, in 2022, and it will also undergo the fastest growth in the forecast period. These batteries are safer than others and capable of charging at a high speed, which makes them a better option for large commercial vehicles.

Additionally, most electric buses use LFP batteries because they are cheaper to manufacture compared to other batteries. Thus, cost sensitivity has been one of the key factors in the decision to use LFP batteries in electric buses.

Top Companies in India Electric Bus Market Are:

• Ashok Leyland Limited
• JBM Auto Limited
• Solaris Bus & Coach sp. z o.o.
• Deccan Auto Limited
• Olectra Greentech Limited
• Tata Motors Limited
• Zhongtong Bus Holding Co. Ltd.
• BYD Company Limited
• Eicher Motors Limited

Market Size Breakdown by Segment

The study uncovers the biggest trends and opportunities in the market, along with offering segmentation analysis at the granular level for the period 2017 to 2030.

Based on Type

• Battery Electric Bus (BEB)
• Hybrid Electric Bus (HEB)

Based on Length

• Less than 10 m
• More than 10 m

Based on Battery

• Lithium–Iron Phosphate (LFP)
• Lithium–Nickel–Manganese–Cobalt Oxide (NMC)
• Others

Based on Application

• Intercity
• Intracity

Geographical Analysis

• South
• East
• West
• North