The drive of the government to control the GHG emissions has led to growing demand of electric vehicles in India with the government setting a target of 2030 to become 100 per cent electric in public transport. This has encouraged the use of clean buses in India with a considerable number of buses already operating on CNG. At the same time, several transport corporations have also begun to procure hybrid and electric buses. The government, on its part, is providing the necessary incentives for accelerating the adoption of these buses. For instance, a fully electric bus is eligible for incentives amounting to 60 per cent of the cost of the bus and a further 10 per cent incentive is also given for purchase of charging equipment.
The market also seems to be ready in terms of availability of products with many leading manufacturers having entered the space. Going forward, there is thus huge opportunity for bus manufacturers, battery manufacturers and for component suppliers. However, there are some challenges that need to be dealt with. The high price of these electric buses has been a major hindrance for their large-scale adoption, with batteries constituting the highest component. At the same time, it needs to be ensured that there is adequate infrastructure such as CNG stations for gas-based buses and charging stations for electric and hybrid buses to ensure seamless operations.
Section I: Market Trends and Outlook
- Executive Summary
- Growth Drivers
- Outlook and Market Opportunities
- Competitive Landscape
Section II: Segment Focus
- Hybrid Bus Market
- Electric Bus Market (Battery Operated)
- Gas-based Bus Market (CNG, LNG, Biogas)