Report Overview

India Electric Bus Market is flourishing owing to the rising government policies and legislation, increased domestic manufacturing, rapid urbanization, and increased environmental consciousness...

India Electric Bus Market - Industry Trends & Forecast Report 2028

India Electric Bus Market was worth USD 127.45 million in 2021 and is further projected to reach USD 2218.05 million by the year 2028, exhibiting a CAGR of 52.8% during the forecast period (2022-2028). The rapid expansion of the market is predominantly due to the rapidly increased domestic automotive manufacturing and increased environmental consciousness. Also, the increasing stringency of emission standards, as well as government guidelines for more energy-efficient vehicles, have shifted OEMs' focus toward alternative fuel vehicles. These are the primary factors driving demand for electric buses in India. Moreover, the government is promoting the usage of electric-powered cars across several states, which is increasing the demand for electric buses in India. This is due to the growing need to decrease GHG (Greenhouse Gases) emissions released by automobiles. All these factors propel the growth of the India Electric Bus Market during the forecast period (2022-2028).

Electric Bus - Overview

A bus that is powered by electric motors rather than an internal combustion engine is referred to as an electric bus. Electric buses have internal energy storage systems and can receive continuous power from an outside source. Even though examples of other storage modes do exist, such as the gyrobus, which uses flywheel energy storage, the majority of buses that store electricity are battery-electric. In these vehicles, the electric motor obtains energy from an onboard battery pack. Electricity is supplied through contact with external power sources when it is not stored on board. For instance, using ground-level power supplies, overhead cables like those used in trolleybuses, or inductive charging.

India Electric Bus Market Forecast and Trends

Growth Drivers

Growing Demand for Zero-Emission and Energy-Efficient Mass Transit Solutions

The transportation sector is a major contributor to greenhouse gas emissions. According to the research, the transportation sector accounts for roughly one-quarter of all energy-related greenhouse gas (GHG) emissions and is a major source of urban and regional air pollution. Vehicle emissions including buses are solely responsible for emitting ozone-depleting substances, which cause air pollution and are hazardous to the environment. Moreover, various governments across the country have launched initiatives to make urban public transportation more sustainable and fuel-efficient through the use of electric buses. In the upcoming years, the adoption of electric buses will revolutionize public transit globally by enhancing air quality, lowering noise levels, and boosting fuel efficiency.

Increasing Government Initiative for Electric Bus

In March 2022, Prime Minister Narendra Modi dedicated a fleet of 150 electric buses from Olectra Green for use in public transportation. Additionally, PM Modi opened a cutting-edge electric bus depot and charging station in the Pune neighborhood of Baner. Moreover, Olectra now runs 150 e-buses for the Pune Mahanagar Parivahan Mahamandal Ltd in the city (PMPML). The company, which is a division of Megha Engineering and Infrastructure Ltd, also operates a fleet in Silvassa, Goa, Nagpur, Hyderabad, and Dehradun in addition to Pune. Furthermore, the response from commuters in numerous cities has been overwhelmingly positive, and the corresponding transportation agencies are eager to increase their fleet of electric buses.

BEST Support for the Electrification of Public Transport 

The BEST undertaking provides Bus Transport within Brihanmumbai limits and also in Navi Mumbai, Thane, and Mira-Bhayander areas. Moreover, in comparison to other cities in the country, Mumbai has the largest fleet of 386 e-buses for public transportation. While the city currently has 7,680 EVs, including 2,237 e-cars and 4618 e-bikes, the number is expected to grow significantly once 1,500 proposed charging stations are installed soon. According to research, Mumbai has registered the most e-buses, the majority of which are air-conditioned. BEST (Brihanmumbai Electric Supply and transport) plans to have half of its fleet electric by the end of 2023, which will entail over 2,000 electric buses, including 900 AC electric double-deckers. The goal is to have a completely electric fleet by the end of 2028.

Restraints

Expensive Development Costs

Electric bus manufacturers are severely constrained by the high cost of developing electric buses and coaches, as well as related parts like batteries and monitoring systems (battery management systems, CAN bus modules). Infrastructure development for EVs comes at a very high cost. The cost of constructing the world's infrastructure is close to USD 2.8 trillion. Electric vehicle (EV) charging stations are the only places where additional equipment, such as electric chargers, can be used to often and quickly recharge an EV's battery. Multiple places need to be equipped with high-capacity charging stations. Electric buses and coaches are more expensive than conventional ICE buses and coaches because of the battery, charger, and installation costs associated with the charger.

Impact of COVID-19 on India Electric Bus Market

The COVID-19 epidemic impacted the electric bus business as e-bus manufacturing facilities have had to close as a result of the countrywide lockdown that has been implemented in all regions. Additionally, the lack of skilled workers has hampered market expansion. Moreover, most global businesses were negatively impacted by the COVID-19 pandemic. It had a conflicting effect on the market for electric buses. At first, the market witnessed fewer customers as people decreased their usage of public transit out of concern about catching the COVID-19 virus. New bus production was additionally hampered by supply chain interruptions in the market. However, the market saw a surge because some countries relied on this sector to spur economic recovery.

India Electric Bus Market - By Type

Based on the type, the India Electric Bus Market is segmented into Battery Electric Bus, Hybrid Electric Bus. Among these, Battery Electric Bus accounts for the largest share in the India Electric Bus Market. Due to increasing government support in the form of incentives, subsidies, and other financial benefits to promote the adoption of these eco-friendly buses, the Battery Electric Bus (BEB) category accounted for a larger share of the electric bus market in India. Furthermore, major manufacturers are including BEBs in their product portfolios, which is boosting the market growth in this category. All these factors propel the growth of the India Electric Bus Market during the forecast period (2022-2028).

India Electric Bus Market - By Battery

Based on battery, the India Electric Bus Market is segmented into LFP, NMC, and Others. The LFP (Lithium-iron-Phosphate) segment accounts for the bulk of the market share and is likely to continue to do so during the forecast period (2022-2028). In the upcoming years, LFP batteries are anticipated to continue to rule the market in terms of volume and value. These batteries are a preferable choice for huge electric buses since they are safer than other types of batteries and can charge quickly. This influences the LFP segment to dominate the market share in the upcoming years.

India Electric Bus Market - By Application

Based on application, the India Electric Bus Market is segmented into Intercity and Intracity. Among these, intracity accounts for the largest share in the India Electric Bus Market. This is mostly due to rising urbanization and environmental problems. Government programs, subsidies, and rules that support the domestic production of electric vehicles also contribute to this. All these factors propel the growth of the India Electric Bus Market during the forecast period (2022-2028).

Competitive Landscape

The leading market players in the India Electric Bus Market are Ashok Leyland Limited, JBM Auto Limited, Solaris Bus & Coach S.A., Deccan Auto Limited, Olectra Greentech Limited, Tata Motors Limited, Zhongtong Bus & Holding Company Limited, BYD Company Limited, Eicher Motors Limited, and other prominent players.

The India Electric Bus Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.

Recent Development

• In August 2019, the government announced plans to procure 5,585 electric buses, to help clean up the environment.

Scope of the Report

By Type

• Battery Electric Bus

• Hybrid Electric Bus

By Length

• Less Than 10 m

• More Than 10 m

By Battery

• LFP

• NMC

• Others

By Application

• Intercity

• Intracity