India Electric Bus Market

Market Overview

The Indian electric bus market size witnessed significant growth in the past and is expected to grow at a CAGR of around 15.70% during the forecast period (2023-2030)

E-buses are electric buses that employ no ICE engines for propulsion. A battery-powered electric motor powers the E-bus. Electric buses are pollution-free. They are also cheaper than gasoline/diesel buses. Demand for fuel-efficient, high-performance, and low-emission buses, government laws on vehicle emissions, and falling battery prices drive the electric bus market.

Fuel economy, serviceability, and manufacturing costs limit market growth. Growth potential comes from technological advances and strong government policies to boost bus uptake. Fossil fuel gasoline will run out. Develop and use alternative fuels for sustainable growth. Electric buses, which don't use gasoline, cost less. These factors drive better fuel-efficient technology and electric buses for travel.

Highlights

• BEV dominates the market by propulsion type. 
• Battery dominates the market by component.
• Fleet operator dominates the market by consumer segment.
•  9-14m dominates the market by the length of the bus.
• Intracity dominates the market by application.
• Less than 200 miles dominates the market by vehicle range.
• Up to 400 kWh dominates the market by battery capacity.
• Up to 250kw dominates the market by power output.
• Lithium-nickel-phosphate dominates the market by battery type.

Market Dynamics

India Electric Bus Market Drivers

Rising Fuel Cost

Due to decreased fuel costs, electric buses are more affordable than diesel ones. Compared to diesel buses, electric buses can save up to 1 crore INR (about 135,000 USD) over their lifetime, according to research by the Indian government's think tank, NITI Aayog. There is a significant cost difference because electricity is more fuel-efficient and costs less than diesel.

India Electric Bus Market Restraints

Charging Infrastructure Challenges

Electric bus implementation requires robust and broad charging infrastructure. Limited charging infrastructure hampered Delhi's electric bus initiative. Delhi Transport Corporation (DTC) piloted electric buses in 2018. However, charging infrastructure issues caused operational issues. Installing charging stations at DTC depots was delayed, resulting in fewer charging points. The buses had to return to the depot for recharge, limiting service frequency and fleet efficiency.

India Electric Bus Market Opportunities

Growing Urbanization and Congestion

Indian cities are growing rapidly and are congested. Electric buses reduce traffic and pollution. For instance, Bengaluru, Karnataka's capital, has led India's electric bus deployment. Sustainable transportation solutions are important due to increased urbanization and traffic congestion. Bengaluru piloted electric buses in 2014. After the pilot experiment, the electric bus fleet expanded.

Regional Analysis

The Indian bus sector has grown rapidly. Rapid urbanization in India is boosting public transit demand. Due to environmental concerns and the need to reduce vehicular emissions, electric buses are becoming more popular. The Indian government is promoting electric buses in many ways. The government's 2013 National Electric Mobility Mission Plan (NEMMP) 2020 offered incentives to stimulate hybrid and EV manufacturing and use in India. Due to state government backing, electric bus sales in North India are predicted to rise at the greatest CAGR in the projection period, above 60%. Delhi is not the only state working to introduce electric buses. In September 2022, the Uttar Pradesh Cabinet approved a new EV policy to make the state a global center for EV, battery, and equipment manufacture. Electric two-/three-/four-wheelers—including buses—will receive a 15% refund.

Segmental Analysis

The Indian electric bus market is segmented based on propulsion type, component, consumer segment, bus length, application, vehicle range, battery capacity, power input, battery type, and country.

Propulsion Type further segments the market into BEV, PHEV, and FCEV.

BEV segment dominates the market and is expected to grow at a CAGR of 15.76% during the forecast period.

Component further segments the market into Motor, Battery, Fuel Cell Stack, Battery Management System, Battery Cooling System, and E.V. Connectors.

Battery dominated the market and is expected to register a CAGR of 15.17% over the forecast period.

Consumer Segment further segments the market into Fleet Operators, Government.

The Fleet Operator segment dominates the market and is expected to grow at a CAGR of 15.39% during the forecast period.

The market is further segmented by Length Of The Bus into Less Than 9m, 9-14m, and Above 14m.

The 9-14m segment dominates the market and is expected to grow at a CAGR of 15.90% during the forecast period.

The market is further segmented by application into Intercity, Intracity.

Intracity dominated the market and is expected to register a CAGR of 15.92% over the forecast period.

The market is further segmented by Vehicle Range into Less Than 200 Miles, Above Miles.

The less than 200 miles segment dominates the market and is expected to grow at a CAGR of 15.76% during the forecast period.

Battery Capacity further segments the market into up to 400kwh and above 400kwh.

Up to 400 kWh segment dominates the market and is expected to grow at a CAGR of 15.32% during the forecast period.

The market is further segmented by Power Input into Up to 250kw, Above 250kw.

Up to 250kw dominated the market and is expected to register a CAGR of 15.74% over the forecast period.

The market is further segmented by Battery type into Lithium-Nickel-Manganese-Cobalt-Oxide, Lithium-Iron-Phosphate.

The lithium-Iron-Phosphate segment dominates the market and is expected to grow at a CAGR of 15.90% during the forecast period.

Recent Developments

• May 2023- Tata Motors received 50 Magna 13.5-metre bus orders from Vijayanand Travels.
• April 2023- Mowasalat and Yutong Signed a Memorandum of Understanding to Support E.V. Research.