Electric bus sales in India to grow 15% by FY27

New Delhi

India’s electric bus market is set to witness a significant surge, with annual sales expected to reach 17,000 units by FY27, marking a 15% growth compared to the 4% sales increase recorded in FY24, according to a new report released on Tuesday.

In FY24, electric buses accounted for only 4% of India’s total bus registrations, with 3,644 units sold. This represents a remarkable 81% year-on-year growth. The shift toward cleaner energy has significantly reduced the market share of diesel and petrol buses, which now account for just 90% of total bus sales, down from 97-98% a decade ago.

The report by CareEdge Ratings highlights that while electric buses have predominantly been seen in larger cities, their adoption is gradually expanding across the country. Arti Roy, Associate Director at CareEdge Ratings, stated that this trend will drive the widespread adoption of e-buses nationwide.

Government initiatives and policies such as the PM e-Bus Seva and PM e-Drive have played a key role in supporting the transition. India’s electric bus potential remains high, with only six e-buses per million people compared to the global average of 85.

Currently, five companies dominate the e-bus market, holding over 85% of the market share and boasting a combined annual manufacturing capacity of 40,500 units. Despite challenges, including financial issues within State Transport Undertakings, the future of electric buses in India looks promising, with expected exponential growth in the coming years.