India Electric Bus Market to See Huge Growth & Profitable Business | Ashok Leyland Limited, Tata Motors Limited, JBM Auto Limited

(MENAFN- P&S Intelligence) 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.

Additionally, the government announced in August 2019 that it plans to procure and deploy 5,585 electric buses all over the country in the coming years. This is predicted to save 1.2 billion liters of fuel. These government measures and schemes are causing a sharp surge in the deployment of electric buses in the country. Besides this, the surging domestic manufacturing of these vehicles is also contributing toward their booming sales in the country.

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.

This is ascribed to their higher requirement and the presence of a suitable infrastructure for the manufacturing of BEB buses in the country. Additionally, the increasing implementation of favorable government measures such as the provision of subsidies and incentives, is also pushing up the sales of BEB. Intercity and intracity are the two major application areas of electric buses in the country. Between these, the requirement for these buses will be higher for intercity applications in the upcoming years.

This is credited to the rising urbanization rate, increasing concerns being raised over the environment, and the rising enactment of government initiatives, regulations, and incentives for promoting connectivity between different cities. The sales of electric buses are expected to rise at the highest rate in the northern part of the country in the forthcoming years. This will be because of the implementation of supportive policies by the state and the central governments regarding the deployment of these buses.

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.

MENAFN19012022005304011875ID1103563255