The Indian electric bus market is projected to reach 4,056 units by 2025, the growth of the market is majorly driven by the increasing government support for electric vehicles and falling battery prices, according to P&S Intelligence.
Insights into market segments
On the basis of vehicle type, the Indian electric bus market is segmented into battery electric bus (BEB) and hybrid electric bus (HEB). Among these, in terms of volume, the HEB category accounted for more than 85% share in the electric bus industry in 2017. However, the fastest growth during the forecast period is expected from the BEB category, owing to higher government support for BEBs as they are eco-friendlier than HEBs.
Based on battery, the Indian electric bus market is segmented into lithium-iron-phosphate (LFP), Lithium Nickel Manganese Cobalt Oxide (NMC) batteries, and others. Among these, the LFP category recorded the highest volume sales, crossing 80% in 2017. However, the fastest growth during the forecast period is expected from the NMC category, owing to its declining price in addition to the higher energy density and safety levels that it offers.
Declining battery prices and rising operational efficiencies poised to benefit the market
The mark-up price of electric bus is primarily decided by the battery the manufacturers use in it. In recent years, battery prices have been falling due to advancements in the technology adopted, thus, allowing the bus manufacturers to keep the price under check. With the passage of time, the Indian electric bus market is expected to grow in terms of operational efficiencies and development of infrastructure, thereby driving the adoption of these during the forecast period.
Browse report overview with detailed TOC on "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" at:https://www.psmarketresearch.com/market-analysis/india-electric-bus-market
Government initiatives driving the market
The Indian electric bus market is primarily driven by the strict government emission norms and regulations and support in the form of subsidies and grants. Also, to deal with the growing concerns related to environmental degradation, the government has planned to roll out fleets of electric and hybrid buses and has taken initiatives to encourage electric bus manufacturing within the country. The Ministry of Urban Development of the country recently launched THE Green Urban Transport Scheme (GUTS) with the aim to reduce carbon emissions from the public transport vehicles in the country. The ministry proposed an INR 250 billion grant for developing electric vehicles for public transport.
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.
INDIA ELECTRIC BUS MARKET SEGMENTATION