Govt policies and battery technology driving e-bus industry growth
Around 152,918 units of electric buses are expected to be sold in India by 2030, a compound annual growth rate (CAGR) of ~86% during the five years starting from FY 2025, according to an industry report. In FY 2024, a total of 3,708 units of electric buses were sold across the country.
The Indian e-bus market growth is driven by government policies, environmental concerns, and advancements in battery technology, said the report “E-Bus Market in India (2025-2030)” which has been added to ResearchAndMarkets.com’s offering from 3 April.
The transition from diesel to electric buses aligns with India’s commitment to net-zero emissions and urban mobility sustainability, noted the report.
Incentives under the FAME scheme, state-level policies, and domestic manufacturing push are accelerating adoption. With increasing fleet electrification and investment in charging infrastructure, the sector is set to transform public transportation in the coming years https://www.makeinindia.com/home/.
The market is propelled by central and state-level incentives under the FAME-II scheme and National Electric Bus Programme (NEBP). The recent Union Budget 2025 extends customs duty exemptions on 35 capital goods for EV battery manufacturing, lowering costs and boosting domestic production. The Clean Tech Manufacturing Program will further enhance the EV ecosystem by supporting motor, controller, and battery production https://sbi.com.in/.
By 2030, India aims to deploy 50,000 electric buses nationwide, significantly reducing dependence on fossil fuels. With states like Delhi, Maharashtra, and Tamil Nadu leading fleet electrification, procurement of e-buses through the GCC (Gross Cost Contract) model is gaining traction, ensuring steady revenue streams for operators https://fieo.org/.
The Indian e-bus market is undergoing rapid transformation, driven by advancements in battery technology, charging infrastructure, and policy incentives. The government has extended customs duty exemptions on 35 capital goods for EV battery manufacturing, reducing costs and boosting local production https://www.commerce.gov.in/.
Additionally, battery-swapping and fast-charging infrastructure are being prioritized to minimize downtime and enhance operational efficiency. Cities like Mumbai and Bengaluru are pioneering dedicated EV zones with high-speed charging hubs. Another significant trend is the adoption of AI-driven fleet management systems, which optimize route planning and energy efficiency. Moreover, the inclusion of MSMEs in the EV supply chain under the Clean Tech program is accelerating localized manufacturing, reducing dependency on imports.
Participants in the e-bus market are:
PMI Electro Mobility Solutions Private Limited;
Switch Mobility Automotive Limited;
VE Commercial Vehicles Limited. Fiinews.com
