The primary drivers of e-bus growth are the decline in battery prices and production-related economies of scale.
Sales of electric buses are expected to increase by 75–80% YoY as part of India’s public transportation goal to reduce carbon emissions. This growth is supported by government regulations, incentives, and subsidies. A significant portion of the nation’s tenders were given under different programs, including PM-eBus Sewa, CESL’s National Electric Bus Programme (NEBP), and FAME (1 and 2).
According to the international analytics company CRISIL, stakeholders and the government have been instrumental in increasing the sales of EVs, including e-buses. The adoption of e-buses, according to Gautam Shahi, Director of CRISIL Rating, is headed in the right route because the Gross Cost Contract (GCC) model effectively addresses the needs of bus operators and STUs. It lowers the risks for each and every stakeholder.
The primary drivers of e-bus growth are the decline in battery prices and production-related economies of scale. According to ET, it is strongly anticipated that these variables will offer state transport undertakings (STUs) more affordable leases per kilometer, hence promoting adoption.
The industry will benefit from the robust e-bus orderbook that now exists as well as the 7,800 more buses that will be awarded under the PM e-Bus Sewa Scheme 4, according to Pallavi Singh, Associate Director at Crisil Ratings, who spoke with ET. In order to sustain the expansion of e-bus sales during this and the upcoming fiscal year, the government is anticipated to further expand his program.
The nation is expected to see a sharp increase in the usage of e-buses, which will eventually have positive effects on the environment and the economy. In the upcoming years, sensible policies, subsidies, and investments are predicted by experts to maintain the electric vehicle (EV) growth race and lead the global value chain.
