The ‘Electric Bus Market in India 2023 – 2028’ report by ResearchAndMarkets sheds light on the promising outlook for India’s electric bus sector. In the fiscal year 2023, the sale of electric buses reached 1,919 units, and projections suggest a robust compound annual growth rate (CAGR) of approximately 89.21% from FY 2024 to FY 2028, with an estimated 41,566 units.
As of July 2023, around 3,000 electric buses have been registered, and pending orders are close to 7,000 units. The states of Maharashtra, Uttar Pradesh, Delhi, and Gujarat collectively contribute over 75% of these registrations, indicating concentrated growth in key regions.
Several factors contribute to the surge in the electric bus market, including increased demand aggregation, standardization initiatives, technological advancements, and improvements in charging infrastructure. The Indian government’s commitment to fleet electrification, coupled with the efforts of original equipment manufacturers (OEMs) to establish integrated electric vehicle ecosystems, acts as a catalyst for this significant growth.
Both Central and state governments actively support electric vehicles (EVs) through incentives such as the FAME II scheme, PLI scheme, road tax exemptions, and reduced GST. With a strong focus on cleaner public transportation, substantial investments are planned for mobility infrastructure, promising a transformative impact on the sector.
Key trends highlight the higher integration of electric buses compared to other vehicle segments in primary EV sales states. Notably, Uttar Pradesh (UP) boasts a 15% penetration rate, Karnataka stands at 12%, and Maharashtra at 8%. This upward trajectory is sustained by growing consumer demand, standardized products, technological advancements, and improved charging infrastructure.
Technological progress, translating into enhanced charging efficiency, extended range, and expected reductions in battery costs, positions electric buses for widespread adoption. Pro-EV policies with specified e-bus penetration targets further solidify the sector’s potential, indicating a cumulative annualized potential exceeding 15,000 e-buses driven by state and city road transport corporations (STUs). The promising trajectory and supportive environment underscore the transformative impact of electric buses on India’s public transportation landscape.