With the increasing air pollution levels, the demand for electric vehicles, including electric buses, is surging sharply in India. Moreover, the government is launching several regulations and schemes for encouraging the adoption of electric buses in the country. The Ministry of Heavy Industries and Public Enterprises announced the eligibility criteria for passenger vehicles, electric buses, and two- and three-wheelers for availing the benefits of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME)-II incentives in March 2019.
Many local players are increasingly announcing collaborations with several foreign leading players for meeting the rising demand for electric buses in the country. This is propelling the domestic manufacturing of these buses in the country. For example, GreenCell Mobility entered into a partnership with PMI Electro Mobility Solutions for deploying 350 electric buses in Uttar Pradesh. This will subsequently generate 1,000 jobs in the country. These factors are driving the growth of the Indian electric bus market.
As a result, the market revenue is predicted to grow from $94.3 million in 2020 to $1,364.4 million by 2025. Furthermore, as per the forecast of P&S Intelligence, a market research firm based in India, the market will advance at a CAGR of 48.8% from 2021 to 2025. Between the hybrid electric buses (HEB) and the battery electric buses (BEB), the sales of the latter are predicted to be higher in the coming years.
Hence, it is clear that the demand for electric buses will shoot up in India in the coming years, primarily because of the increasing enactment of favorable government policies and the surging domestic manufacturing in the country.