India Electric Bus Market by Type (BEB, HEB), by Length (<10m, >10m), by Battery (LFP, NMC), by Region (South, East, West, North) – Market Size, Share, Development, Growth, and Demand Forecast, 2017-2025

India Electric Bus Market Overview

The Indian electric bus market is forecasted to reach 4,056 units by 2025, registering a CAGR of 38.0% during the forecast period. The market has recently witnessed a significant growth, mainly driven by the strict government emission norms and regulations, and government support in the form of subsidies and grants. The declining battery prices coupled with advancements in battery technology is also expected to boost the industry growth during the forecast period.

INDIA ELECTRIC BUS MARKET, BY LENGTH, UNITS (2017-2025)

On the basis of type, the Indian electric bus market is categorized into battery electric bus (BEB) and hybrid electric bus (HEB). Among these, the volume sales of the BEB category are estimated witness faster growth during the forecast period, and contribute more than 85% share to the market by 2025. This is attributed to the declining prices of BEBs and the reduced carbon emissions they offer.

On the basis of length, Indian electric bus market is divided into less than 10 meters and more than 10 meters categories. Between these two, the less than 10 meters category witnessed higher volume sales in 2017, and is expected to continue being the leading category during the forecast period, owing to the preference for smaller buses in the country by the State Road Transportation Undertakings (STUs).

On the basis of geography, the Indian electric bus market is categorized into south, east, west, and north. In terms of volume, the north region held a market share of more than 80% in 2017. However, the south region is predicted to witness a CAGR of more than 30% during the forecast period and is expected to lead in terms of size as well.

India Electric Bus Market Dynamics

Growth Drivers

Due to the growing concern of increased levels of air pollution, particularly in the major urban towns and cities, the government has decided to roll out plans and schemes to curb this major problem by introducing eco-friendly electric buses in for public transportation. The Indian electric bus market is primarily driven by government support in the form of grants and subsidies and strict emission norms and regulations regarding carbon emission.

The state government run buses around the country cause high levels of air pollution. The consolidated carbon emission through these buses is way higher than those by private vehicles. Therefore, the government launched a scheme called Green Urban Transport Scheme (GUTS) to reduce these emissions to a considerable extent. These electric vehicles are likely to get cheaper owing to such grants and the advancements in battery technology, thus driving the growth of the Indian electric bus market.

Restraints

The lack of proper infrastructure is the major restraint for the growth of the Indian electric bus market. In a developing nation like India, the development and run of electric buses still seem difficult due to the limited availability of charging stations. Also, the battery needed to run these buses needs to be reliable so that range issues are properly dealt with. Also, there is not enough support from entities such as service providers, electric utilities, and financial institutions, thus restraining the growth of the electric bus market in the country.

Indian Electric Bus Market Competitive Landscape

The key players in the Indian electric bus market are Ashok Leyland Limited, Goldstone Infratech Limited, Tata Motors Limited, JBM Auto Limited, Solaris Bus & Coach SA, BYD Auto Co. Ltd., Zhongtong Auto Co., Optare PLC, Deccan Auto Limited, and Volvo Eicher Commercial Vehicles Limited.