Chennai: India’s electric bus market is poised for strong growth, with tenders for procuring 7,000-10,000 electric buses from central and state governments currently under discussion. However, delays in major procurement programmes are slowing near-term deployment.“Overall, there is a clear trend of new tenders and EV adoption coming up. The PM eSewa tender is in the pipeline and is being delayed. However, there are about 4,000 to 6,000 tenders right now from the central government, and another 3,000 to 4,000 tenders from respective state governments, which are under discussion,” said Mahesh Babu, MD, Olectra Greentech, a manufacturer of electric buses.“If you look at the overall bus market, EV penetration is about 7%. But in the 9-metre and 12-metre segments alone, out of 7,800 buses, nearly 1,500 are electric, taking EV adoption to almost 20%,” he said during the company’s latest earnings call.Similarly, among state transport undertakings (STUs), out of around 2,000 buses ordered or registered in the first quarter, 1,400 are electric. That translates to nearly 70% EV adoption among STUs. EV adoption is therefore about 70% among STUs, around 19% in the 9-metre and 12-metre segments, and about 6%-7% across the overall bus market, added Babu.More than 2,600 electric buses have been sold in the current fiscal so far. “Typically, you would see e-bus sales picking up in the second half, especially during Q4. So, this represents a good start to FY27 as well,” said Kinjal Shah, Senior Vice President & Co-Group Head, Corporate Ratings, ICRA.Babu said the growth momentum had strengthened, particularly after the West Asia conflict. “A lot of private inquiries have come in for buses and trucks to adapt to EVs. So we believe that this segment will grow substantially,” he said.Olectra expects total e-bus industry volumes to reach around 8,000 units in FY27, with the company targeting deliveries of 2,000-2,500 units. It expects the market to grow at 30%-50% annually beyond FY27, depending on the pace of EV adoption.The growth comes as manufacturers continue to deal with supply chain and cost pressures. Shipping disruptions linked to the Middle East conflict led to higher material costs and delays in the first quarter. These disruptions have started easing now, Babu said.
