Published: December 2022 | Report Code: 11325 | Available Format: PDF
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.
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.
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.
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.
Report Attribute | Details |
Historical Years |
2017-2022 |
Forecast Years |
2023-2030 |
Market Size in 2022 |
$603.1 Million |
Revenue Forecast in 2030 |
$2,766.1 Million |
Growth Rate |
21.0% CAGR |
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
Segments Covered |
By Type; By Length; By Battery; By Application; By Region |
Explore more about this report - Request free sample pages
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.
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.
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
Based on Length
Based on Battery
Based on Application
Geographical Analysis
The value of the electric bus market in India is estimated at $603.1 million in 2022.
BEBs are the most popular in the India electric bus industry.
Government regulations are the biggest driver for the electric bus market in India.
LFP batteries dominate the India electric bus industry.
Delhi and Uttar Pradesh are two of the most-lucrative states in the electric bus market of India.
Get a bespoke market intelligence solution
Want a report tailored exactly to your business strategy?
Request CustomizationWant an insight-rich discussion with the report author?
Speak to AnalystOur dedication to providing the most-accurate market information has earned us verification by Dun & Bradstreet (D&B). We strive for quality checking of the highest level to enable data-driven decision making for you
Our insights into the minutest levels of the markets, including the latest trends and competitive landscape, give you all the answers you need to take your business to new heights
With 24/7 research support, we ensure that the wheels of your business never stop turning. Don’t let time stand in your way. Get all your queries answered with a simple phone call or email, as and when required
We take a cautious approach to protecting your personal and confidential information. Trust is the strongest bond that connects us and our clients, and trust we build by complying with all international and domestic data protection and privacy laws