How is Government Causing Surge in Sales of Electric Buses in India?

There has been a sharp rise in the popularity of electric vehicles in India over the last few years. This is mainly because of the increasing pollution levels and global warming in the country. In addition to this, the soaring number of incentives, in the form of investments and subsidies, being being implemented by the government is further boosting the adoption of electric vehicles across the country. The Ministry of Heavy Industry and Public Enterprise drafted the eligibility criteria and guidelines for the availing of the FAME II incentives for passenger vehicles, two-wheelers, and electric buses in March 2019.

“The FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme was launched by the government for promoting the incorporation of electric mobility and increasing the adoption of electric vehicles in commercial transport fleets in the country”. “The government invested $1,460 million in this policy, which is predicted to support the adoption of over 1,500,000 electric vehicles throughout the country between April 2019 and March 2022”. Furthermore, “the government would invest $517.5 million under this scheme for incentivizing the adoption of 7,090 electric buses in country”.

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Because of the above-mentioned factors, “the sales of electric buses in the country is predicted to rise to 7,187 units in 2025”. The Indian electric bus market would progress at a CAGR of 53.0% from 2019 to 2025, as per the predictions of P&S Intelligence, a market research company based in India. Hybrid electric buses (HEBs) and battery electric buses (BEBs) are the two main types of electric buses running on Indian roads. Between the two, “the usage of the BEBs is predicted to be higher in the forthcoming years”.

“Across the country, the Indian electric bus market registered the highest growth in the southern region of the country during the last few years”. This is mainly credited to the high sales of electric buses in the southern states and cities in the last several years. However, despite the high requirement of the electric buses in the southern region, the market growth rate in the region would be outpaced by that in the northern region in the upcoming years.

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Hence, with the growing implementation of favorable government policies and measures and the reducing costs of lithium-ion batteries, the sales of electric buses will surge all over the country in the years to come.