The Indian electric bus market size is expected to advance at a CAGR of 21% during 2022–2030, to reach $2,766.1 million by 2030.
Due to the rising demand for low-emission public transportation, the market for electric buses is growing in India. A number of government initiatives to reduce carbon emissions, the installation of charging stations, and improvements in the battery technology are also contributing to the growth.
The Indian electric bus market is led by established domestic players, such as Tata Motors Limited, Ashok Leyland Limited, GreenCell Mobility, and Olectra Greentech Limited. These OEMs are collaborating with established international players to meet the rapidly surging demand for electric buses, through domestic production. For instance, GreenCell Mobility, in partnership with PMI Electro Mobility Solutions, aims to deploy 350 electric buses in Uttar Pradesh, which will also create 1,000 jobs in the country.
Besides, the Make in India scheme is encouraging the manufacturing of electric buses in the country through policies that support 100% foreign direct investment (FDI) and offer financial support for research and manufacturing. Additionally, the FAMEII scheme is benefiting the customers as well as manufacturers of electric buses, by encouraging the local production of these automobiles and helping the government bring down their prices. Thus, the rise in domestic manufacturing is expected to drive the market in the coming years.
The intracity category held the larger market share, over 90%, in 2022. This is mainly due to the rapid urbanization and growing environmental concerns. The government schemes, incentives, and regulations supporting domestic manufacturing have essentially been leading to the market growth in this category.
The intercity category is expected to witness the faster growth during the forecast period. Buses that are used for intercity services must have long ranges. However, because of the limitations in battery power and capacity, most of them need frequent charging, as they cover long distances traveling from one city to another city.
The transportation sector is a major source of greenhouse gas emissions. Therefore, the Government of India is giving the FAME II project top priority, with a focus on accelerating the adoption and production of electric buses. Well-known businesses, such as Tata Motors and PMI Electro Mobility Solutions, are funding long-range electric buses with quicker recharge times, for intercity travel. Currently, state transportation organizations are benefitting from the financial incentives provided by the government. Additionally, due to the installation of the charging infrastructure around the country, the number of private bus operators will likely boom in the coming years.
The major players in the Indian 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, and Eicher Motors Limited.