ELECTRIC

BUS
MOBILITY
Report

FEB, 2024 @Lattice Technologies Pvt. Ltd.

Glossary

Abbreviation Definition

EV Electric Vehicle

OEM Original Equipment Manufacturer

FAME Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles

NEMMP National Electric Mobility Mission Plan

NEBP National Electric Bus Programme

CESL Convergence Energy Services Limited

GCC Gross Cost Contract

PPP Public-Private Partnership

TCO Total Cost of Ownership (includes capital, maintenance, fuel, staff

and charging infrastructure costs)

RfP Request for Proposal

STU State Transport Undertakings

PLI Production Linked Incentive

EESL Energy Efficiency Services Limited

MHI Ministry of Heavy Industries

PSU Public Sector Undertakings

© 1lattice | 02
Foreword
E-buses are gaining rampant popularity in incentivizing purchases through subsidies
India in not only the public but the private and deploying both inter and intra-city
sector as well. They run on electricity buses across all the states in India.
instead of diesel and have zero tailpipe This report is committed to delivering a
emissions: holding significant promise in thorough understanding of the market by
meeting India’s zero net carbon emissions delving into technological advancements,
target by 2070. The industry is being driven and potential challenges. The objective is
by an increase in environmental concerns to provide a comprehensive perspective
and emphasizing the cost-effectiveness of that not only captures the current state of
e-buses in the long term. the market but also sheds light on its
In this report, we intend to provide insights future trajectory. This endeavor aims to
into the e-bus mobility sector of India. The offer valuable insights to a diverse
economics of replacing all diesel buses audience of industry stakeholders,
with electric ones is challenging today prominently including business leaders
because of the high upfront costs and lack The situation is evolving rapidly, and some
of charging infrastructure in India. of the expected scenarios might have
However, in India players such as JBM, slight variations. The report reflects our
TATA, Olectra and Foton are leading the perspectives as of January 2024.
production and mass distribution of
e-buses and lithium batteries. The We, at 1Lattice, look forward to continuing
government through its FAME initiative is the discussion with our friends across
also contributing to the sector by sectors and exchanging notes.

Roma Dixit
Director- Insights and Consulting,
Financial Investors, 1Lattice
Executive summary

Overview
• The government of India has launched several
schemes over the years aimed at faster adoption of
electric buses in the country
- FAME 1 (2015-19): The GoI sanctioned 465 e-buses
to various states and provided subsidies worth
INR 343 Cr
- FAME 2 (2019-24): Phase I saw the deployment of
~2,500 e-buses, with the highest deployment in
the states of Maharashtra and Uttar Pradesh
- Phase II of FAME 2: Convergence Energy Services
Limited aggregated demand for 5,450 e-buses
across 5 cities through the Grand Challenge
tender
• A vast majority of e-buses in India are leased by
state governments or State Transport Undertakings
- Olectra, Tata, PMI, Switch are some of the biggest
Original Equipment Manufacturers (OEMs) in India
• The e-bus market encounters significant challenges,
including the need for charging infrastructure,
restricted distance coverage, and substantial initial
expenses

© 1lattice | 04
Stakeholders’ perspective
• E-buses present a cost-effective and environmentally
friendly option despite higher initial capital investment;
Lower TCO along with enhanced driving experiences makes
e-buses a stable and efficient choice in the long term
- Capital investment of e-buses is higher as compared to
traditional buses but the TCO is lower due to lower fuel
and maintenance costs
- E-buses emerge as a more environmentally friendly
and cost-effective choice over traditional buses, offering Road ahead
greater price stability in the long term
• The Government has undertaken
- Enhanced ride / driving experiences with electric buses
several initiatives like NEBP, PM
due to better soundproofing, upgraded features such as
e-Bus Sewa Scheme to increase
comfortable seating, modern interiors, and lightweight
e-buses and developing
• Long distance travel by e-buses remains unpopular due to charging stations across India in
limited charging infrastructure and limited public the coming years ahead
awareness. However, they are gaining popularity in the
- Aims to construct 2,877 EV
intra-city mobility segment due to the comfort and
charging across multiple
affordability they provide
states, 1,576 stations across
- Bus users prefer buses for travelling distances ranging 16 highways and 9
from 20-500 km expressways by 2030 under
phase II of FAME scheme
- People choose intercity buses for vacation trips (~65%)
and returning to their hometowns (~60%). Intracity buses • GoI also aims to boost
are selected for social outings (~65%) and daily production of e-buses and
commuting to work (~55%) expanding e-bus fleet by
providing PLIs to e-bus
- Comfortable seating, AC facility, interiors are some of
manufacturers and making
the key criteria considered while selecting a bus for
crucial investments
travel
- The first draft of the FAME-III
- ~75% individuals who have tried e-buses favor it over
scheme has proposed an
conventional buses for both intercity and intracity
outlay of INR 40-50K Cr to
journeys, with the primary reasons being noise
promote EVs in the country
reduction (~70%) and cost savings (~50%)

© 1lattice | 05
Agenda

Overview

Understanding stakeholders’
perspective

Road ahead
E-buses market landscape

Majority of the electric buses in India are leased by state governments or State Transport
Undertakings (STUs)

E-bus OEMs STUs operating e-buses

Battery manufacturers Electric motor manufacturers Charging infrastructure providers

Press releases, News articles, Secondary research, 1Lattice analysis © 1lattice | 07

Government schemes- Timeline

The Indian government has rolled out schemes to expedite the adoption of electric and hybrid
buses, supported by financial facilities

NEMMP
• Launched the National Electric
Mobility Mission Plan (NEMMP) 2020
to reduce carbon emissions and
2013
promote EVs FAME I (major scheme
• Aimed at attaining sale of 6-7M under NEMMP)
hybrid and electric vehicles
• Direct acquisition of electric buses
year-on-year
with subsidies offered by the
2015 government The budget outlay
was INR 895 Cr
• Incentivized purchase of 2.78L xEVs
FAME II (Extended version of FAME I) through subsidies worth INR 343 Cr
• Allocated ~INR 10K Cr for 3 years to and sanctioned 465 e-buses to
support the deployment of 7K e-buses various states
• Focus area was the electrification of 2019
public and shared transportation and the
establishment of charging infrastructure
NEBP
• Deployment of 50K e-buses till 2027,
2022 supported by a substantial investment
of INR 83K Cr
• Aims to achieve economies of scale by
PM-eBus Sewa Scheme aggregating demand for e-buses
• Introduction of 10K e-buses on a across the country and homogenizing
PPP model in 169 cities to enhance the tender conditions & bus
urban mobility 2023 specifications
• Priority is cities with no organized
bus service with central assistance
of INR 20K Cr

Source(s): Press Information Bureau, Press releases, News articles, 1Lattice analysis © 1lattice | 08
E-buses: STU orders

State governments across India have collectively ordered ~15,800 electric buses, with
Maharashtra and Delhi being top 2 ordering 6,586 units and 5,046 units respectively

# orders received by OEMs / Operators Total

State / UT STUs orders

Maharashtra 5,150 - - 386 50 700 300 - 6,586

Delhi - 1,500 2,026 950 570 - - - 5,046

Uttar Pradesh 200 650 200 500 700 - - - 2,250

Karnataka 50 921 - - - - - - 971

Gujarat 250 150 200 100 - - - - 700

Goa 100 - 48 - - - - - 148

Chandigarh - - - 60 - - - 40 100

Total 5,750 3,221 2,474 1,996 1,320 700 300 40 15,801

Low High

Source(s): Press releases, News articles, Secondary research, 1Lattice analysis © 1lattice | 09
E-buses deployment across India: Phase 1 of FAME II

Under phase I of FAME 2, a total of 2,435 electric buses have been put into service with highest
deployment in the states of Maharashtra and Uttar Pradesh

E-buses sanctioned and deployed under FAME 2

High deployment (>400 buses) India Scheme (Phase-I)
Medium deployment (101-400 buses) State / UT # Sanctioned* # Deployed*

Maharashtra 830 682

Low deployment (1-100 buses)
Uttar Pradesh 600 565
Sanctioned but not deployed
Gujarat 700 397
Not sanctioned
Delhi 400 380

Karnataka 350 150

Chandigarh 80 80

Goa 150 50

Uttarakhand 30 30

Bihar 25 25

Dadra & Nagar Haveli 25 25

Andhra Pradesh 100 20

Odisha 50 20

West Bengal 50 11

Jammu & Kashmir 200 0

Rajasthan 148 0

Total 3,738 2,435

Note(s): The data of buses sanctioned and deployed as on 15.02.2023 Low High
Source(s): Press Information Bureau, Press releases, News articles, 1Lattice analysis
© 1lattice | 10
CESL GC initiative: Phase 2 of FAME II

Based on the learnings from phase I of FAME 2, CESL, a public sector undertaking aggregated
demand for 5,450 buses across five cities through ‘Grand Challenge’

Initiative Date of announcement Tender size # Cities covered

Grand Challenge 30 September 5,450 5
(GC) Tender 2021 electric buses

Key features Gross Cost Contract (GCC) model Timeline: CESL ‘Grand Challenge (GC)’
• Based on the lessons from • Under GCC state retains the ticket revenue & thus Jun 2021 Gazette notification nominating EESL to
phase-1 of FAME II, NITI Aayog bears financial risk; private player’s liability is aggregate bus demand under FAME 2
identified the need to limited to procurement, operation & maintenance
re-structure the program to: of buses CESL, subsidiary of EESL, launches
Sep 2021
Grand Challenge
- Reduce tender prices Investor,
Operator STUs/ Cities
OEMs Dec 2021 NITI Aayog constituted committee to

Payment per km to operator

- Homogenize
procurement homogenize specifications across
Consortium Electrical Infra shortlisted cities
specification
- Float large scale tender Route planning Jan 2022 RfP for procurement of 5,450 e-buses
Ownership State’s launched by CESL
• NITI Aayog appointed CESL to Operation Private Revenue scope
initiate Grand Challenge player’s collection Feb 2022 Pre-bid meeting with potential bidders
(GC) for electric bus Maintenance scope and finalization of homogenized
Contract
procurement across 5 cities Disposal specifications in response to pre-bid
management
queries
• Five major Indian cities: Delhi,
Bangalore, Hyderabad,
Kolkata, and Surat
Outcome of Grand Challenge
• GC aggregated electric bus
demand across 5 cities, • Aggregate demand across cities led to the world's largest electric bus tender of 5,450 buses
homogenized their • The mega size of the tender contributed to lowering overall bid rates
procurement specifications - The tender rate was reduced by 39.8% (from INR 79 per km to INR 48 per km) with the increase in bus lot
and carried out the sizes
procurement based on Gross
Cost Contract (GCC) • The L1 bid for e-buses without subsidy was 27% cheaper than diesel buses and 23% cheaper than CNG buses
in Delhi

Source(s): CESL report, Press releases, News articles, 1Lattice analysis © 1lattice | 11
Growth barriers

Charging infrastructure, limited distance range and high upfront costs are the major challenges
faced by the e-bus market in India

1 2 3 4 5

Charging infra- High upfront Limited model Safety Public awareness

structure & limited costs availability challenges and perception
distance range
• Energy density, charging • The initial fixed cost of • The options for electric bus • Safety concerns are • Limited awareness and
speed, overall longevity e-buses is generally models are currently critical in gaining understanding among
and range anxiety are higher as compared to limited, and transit consumer trust in EVs. the public about the
the major concerns for traditional diesel or CNG agencies may find it Risks associated with cost benefits, reliability
transit operators who buses due to the cost of challenging to find battery technology, and durability of
need buses to cover long the battery technology suitable models that meet such as thermal electric buses impacts
distances without and charging infrastruc- their specific operational runaways, fire the acceptance and
frequent charging ture requirements incidents and range demand
• EV charging infra is - An average TATA diesel - TATA motors currently anxiety need to be • The lack of trust in the
unevenly distributed and bus is in the range of manufactures 16 addressed range of e-buses and
a significant gap exists INR 20-40L while their models of conventional - Instances such as the absence of
between EVs and e-buses start at buses while only that of a BEST e-bus sufficient charging
charging stations. For eg, INR 2Cr manufacturing 3 catching fire while stations makes
UP has 4.5L EVs but only - Insurance premium for models of e-buses; the parked in bus depot customers prefer diesel
406 charging stations e-buses is also more models differ by size, has been making buses while commuting
expensive compared to battery life, charging customers long distances
conventional buses time apprehensive

“ “E-buses are suitable for shorter distances

due to their lower distance coverage range.
Diesel buses have higher distance capacity
“Traditional buses cost me INR 40-45L and
EVs start from INR 1.10 -1.15Cr. If I increase
e-buses in my fleet, then my profit will start
“For e-buses, the running cost is less but the charging
infrastructure, parking, maintenance, tax, insurance etc. is
more. We pay INR 7-8K per bus per month for servicing
and higher speed range as well. Hence, we decreasing.” whereas diesel buses go for service once a month costing
prefer it for longer distances”. us INR 2.2K per service.”
- Owner and proprietor, leased & owned

”
- Business owner, owned buses buses - Manager operation, owned buses

Source(s): Press releases, News articles, Company websites, Secondary research, 1Lattice analysis © 1lattice | 12
Agenda

Overview

Understanding stakeholders’
perspective

Bus operator

Customer

Road ahead
TCO of e-bus and conventional bus

E-buses have a larger capital investment but have a lower TCO compared to conventional buses
due to the lower fuel and maintenance costs

TCO breakdown
(INR/km)
TCO per km reduced
by ~15% post FAME II
subsidy “For e-buses, the running cost is less but the
initial payment and insurance is higher.
77.75 Currently, if I buy more e-buses my profits will
78.57 go down in the short term but in the long term,
2.7 along with government subsidiaries, they would
probably be higher than diesel ones.”
4.43
16.7 - Owned buses, Operations Manager
4.48 61.15
4.79 53.77

1.52 10.02 “There is zero maintenance in e-buses unless

17.45 16.98 there is some malfunction not letting us
4.43 operate properly or there has been an accident.
3.5 We send our diesel buses for service at least
4.79 15.57 once a month.”
17.45 - Leased and owned buses, Owner and Proprietor
17.45
17.45
43.9
“Our e-buses operate primarily within Mumbai
27.44 (max Lonavala only) due to limited range. It
22.08 needs 4-4.5 hours of charging time. Within
18.11 Mumbai, I can cover 10-12 trips with my e-bus.
The cost of recovery is more in intracity travel as
compared to intercity travel.”
E-Bus E-Bus Diesel-Bus Diesel-Bus - Owned buses, Owner and Proprietor
(12m_AC_BB)** (12m_AC_SB)*** (AC, High End) (AC, Low End)

Capital Cost* Staff Cost Fuel Batt Replacement Maintenance Charging Infra

Note(s): *Capital costs include purchase costs and charging infra costs, **12m AC Electric Bus with 320-kWh Battery Pack, ***12m AC Electric Bus with 125-kWh Battery Pack
Source(s): Bus operator conversations, World Resource Institute, Secondary research, 1Lattice analysis
© 1lattice | 14
Key differences between e-bus and conventional bus

E-buses offer a cleaner and more economical alternative to conventional buses in the long run
with a lower TCO per km and enhanced price stability

Parameters E-buses Conventional buses

• TCO per km of a 12m e-bus with a 125-kWh battery pack is • TCO per km of a 12m high-end diesel bus is INR
INR 53.77/km and INR 77.75/km for a bus with a 320-kWh 78.57/km and INR 61.14/km for a low-end model
TCO battery pack • For a 9m bus, TCO per km is INR 61.78/km for a
• For a 9m bus, TCO per km is INR 49.77/km high-end model and INR 50.09/km for a low-end one

• Maintenance costs have increased historically hence with • With a 50% increase in maintenance costs, the TCO
a 50% increase in maintenance costs, the TCO per Km of per km of conventional buses rises 8-11% up
e-buses rises only by 3-4% up • A conventional bus costs ~INR 40-80L and insur-
• An e-bus costs around INR 1.10-2Cr and the insurance ance premium ~INR 50K
premium is ~INR 65K Fixed costs account for around 58% of the total cost
Fixed costs •
• Fixed costs account for 73% of the total cost for a 12m bus for both a 12m high-end and low-end bus
with a 125-kWh battery and over 75% of the total costs for
a 325-kWh battery

• Maintenance & fuel costs account for only 15% for a 12m 125 • Maintenance & fuel costs account for 42% for a 12m
kWh battery bus and 10% for a 325-kWh battery (both being high-end bus (INR 33.23 /km) and 40% for a low-end
Fuel & INR 8.2/km) bus (INR 25.59/km)
maintenance • In accordance with the rising trend in electricity and fuel • With a 50% rise in diesel costs, the increase in the
costs, a 50% increase in electricity costs would increase the TCO per km is ~11-13%, making its operation more
costs
TCO per km by ~3-4%, making its operation more stable and volatile in the future
economical in the future

Carbon • A 12m e-bus emits 669g of CO2 per km (g/km) • A 12m diesel bus emits 1,665g of CO2 per km (g/km)
Emissions

• Expected life span ranges from 8-12 years based on the • Life span ranges from 12-15 years
size of the battery • Time taken to fill a bus fully is around 8-15 minutes
Lifespan and • Time taken to charge from 0-100% in 6-8 hours on slow depending on the bus capacity
Range and 2-3 hours on fast charge • A high end 12m Volvo bus with a 600L capacity can
• A 12m bus with a 125-kWh battery can optimally run for 120 cover 180 kms
kms on full charge

Source(s): Bus operator conversations, World Resource Institute, Secondary research, 1Lattice analysis
© 1lattice | 15
Preference for e-buses by bus operators

Bus operators prefer e-buses for intracity travel due to lower TCO & maintenance cost,
government subsidies and increasing demand

Lower operational costs, government mandates, Go Green demand by

the clients, etc are the key reasons for e-bus adoption Voice of bus operators
Parameters E-buses
• Cost of running and TCO is much lower in e-buses than tradi-
Lower running tional buses “The running cost in the case of traditional
costs and TCO buses is ~INR 7-8/km whereas e-buses cost
- For a 9m bus, TCO per km for e-bus is INR 49.77/km whereas INR 1.5/km. For intracity travel, I will switch to
it is INR 61.78/km for high-end model of conventional bus e-buses soon.”
Bus operators will prefer e-buses
even if reduced / removed subsidies
and INR 50.09/km for a low-end model - Owned buses, business owner
due to other multiple benefits which
will lead to further adoption • FAME, NEMP, NEBP, and e-Bus Sewa are schemes launched by the
government to promote the adoption of EVs and facilitate subsidies “Passengers prefer good suspension so that
they can enjoy the ride. No one likes the
- Government allocated INR 10K Cr for deployment of 7K e-buses
Government sound of diesel buses when you are sitting
- Assistance of INR 20K Cr under PM-eBus Sewa Scheme next to the engine.”
schemes
• Belief that the government might mandate the use of E-buses in the - Leased and owned buses, owner and proprietor
future has augmented bus owners to include E-buses in their fleet

• Less pollution and lower carbon footprint are a few reasons “Our corporate clients are moving to the “Go
customers (specifically big corporations) are increasingly preferring Green concept” and strictly want EV. EV is
Environmental E-buses one-time investment, so I have received cost
benefits.”
impact - Many Corporate clients are adopting E-buses for staff - Owned buses, Manager operation
commute under the “Go Green” concept
• Better soundproofing and suspension leading to an increased “Drivers prefer e-buses more because e-bus-
Better ride sense of comfort for customers es never run without AC. While driving CNG
experience - Improved amenities and facilities in terms of seats, modern buses, you will get rashes on your body. Diesel
interiors, etc buses are very noisy which impacts your body
and brain.”
• Preference of E-buses by bus drivers due to the buses being - Leased and owned buses, owner and proprietor
Better driving lightweight
experience • Better equipped with facilities like ACs, comfortable seating

Source(s): Bus operator conversations, World Resource Institute, Secondary research, 1Lattice analysis

© 1lattice | 16
Agenda

Overview

Understanding stakeholders’
perspective

Bus operator

Customer

Road ahead
E-bus users

Bus users prefer bus for distances ranging from 20-500 km; trains are preferred for distances
ranging between ~500-1,500 km and aircraft for 1,500 km and above

Q. Which mode of transport do you prefer for each interval of distance?

Preference for mode of transport

(%, N = 300)

1% 2% 1% 4% 3% 2% 1%
7%
12% 17% 14% 18%
4% 29% 34%
12% 38% 48% 49%
54% 1% 61%
14%
55% 71%
65%
23%
78%
63%
64%
52% 8%
8% 30% 48% 50%
39%
27% 21%
21% 1% 17%
5% 10% 7% 5% 3% 1%
1% 3% 2%
0-10 km 11-20 km 21-50 km 51-100 km 101- 201- 301 501- 801- 1201- 1501- >2000 km
200 km 300 km 500 km 800 km 1200 km 1500 km 2000 km

Walking Bicycle Scooter / Motorcycle Autorickshaws Car / Taxi Bus Metro / Suburban rail Train Aircraft

Source(s): Indian bus user survey (N = 300), 1Lattice analysis

© 1lattice | 18
Occasions for choosing intercity vs intracity buses

Intercity buses are opted when embarking on vacations (~65%), returning to hometowns
(~60%); Intracity buses are chosen for social outings (~65%) & daily commutes to work (~55%)

Q. What were the reasons for outstation / intercity

bus travel in the last 6 months? Q. What were the reasons for intracity bus travel in
the last 6 months?
Key selection criteria for buses

Occasions for choosing intercity bus

Occasions for choosing intercity bus Comfortable
(%, N = 197*)
(%, N = 203*) / recliner seats

Social visits (meet Air conditioning

Holiday
destination 63% friends, visit restaurants 67%
/ movie theatre etc.)

Interiors
Travel to
Commute to work 53%
hometown 61%

Hygienic
Shopping 52%
Travel to a
religious place 54%
Local sight-seeing 42% Television

Family outings
/other chores 32% Commute to
school / college 24%
Charging point

For work: Airport / Train

Official visits 17% station travel 21%
Private cabin

Note(s): *Respondents have used intercity buses or intracity buses or mix of both in the last six months for intercity / intracity travel,
Source(s): Indian bus user survey (N = 300), 1Lattice analysis
© 1lattice | 19
Preferences and reasons for choosing

~75% of those who have tried e-buses prefer e-bus over conventional bus for intercity & intracity
travel; Noise reduction (70%) & cost savings (~50%) are main reasons for choosing e-buses

Respondents prefer to travel by e-bus over non-EV / Noise reduction, lower costs are key factors along with
conventional buses both for intercity and intracity journeys energy efficiency & health benefits for preferring e-buses

Q. Do you prefer e-buses over Q. Do you prefer e-buses over

traditional / non-e-buses for traditional / non-e-buses for Q. What are the reasons for choosing e-buses
intercity travel? intracity travel? over traditional / non-e-buses?

Preference in intercity travel Preference in intracity travel Reasons for choosing e-buses
(%, N = 203*) (%, N = 197**) (%, N = 222)

9% 8% Noise reduction 70%

10% 7%
7% 11%
Cost savings 51%

Greener / energy efficient 50%

73% 74%
Health benefits (less pollution) 50%

New fleet of buses 40%

Yes No Indifferent Haven't tried it yet

Note(s): Preference of buses in intercity and intracity travel question was asked only to those who have tried both EV and non-e-buses earlier, *Respondents using e-buses or EV and
traditional buses for intercity travel; **Respondents using e-buses or EV and traditional buses for intracity travel
Source(s): Indian bus user survey (N = 300), 1Lattice analysis
© 1lattice | 20
Agenda

Overview

Understanding stakeholders’
perspective

Bus operator

Customer

Road ahead
Road ahead

Despite the challenges, e-buses in India hold a good growth potential backed by several factors
like more charging stations, technological advancements, etc

Future potential of e-buses in India

Increase in • Out of 7,090 electric buses approved under the FAME subsidy scheme, 2,435 e-buses are
the number currently in operation as on 30th October 2023, remaining units are awaiting deployment
of e-buses • STUs and intercity buses to reach penetration levels of 40-50% by 2030

Expansion • The charging infrastructure in India is still developing with 6,586 public charging
of charging stations are operational in India
stations • India aims to attain 46,397 stations to achieve its 2030 goals

Government • Public sector company CESL aims to deploy 50K buses by 2028 under NEBP
policies & • Government announced PLI for companies to manufacture advanced battery
programmes cells in India and set up Li-ion manufacturing plants in the country

• The government has increased the adoption of lithium-titanate batteries

Advancement
in technology • Lithium-titanate batteries are improved versions of the lithium-ion batteries

“The cabinet's decision for the deployment of 10K electric buses across major “With the government attempting to modernize the fleet with
cities, Union Territories, hill states and the northeast region will truly take electric electric buses and total cost of owners works in favor of e-buses,
buses to the grassroots level pan India. This initiative will now really propel the penetration of the same has been increasing steadily. School
green public transportation and will aid the development and expansion of an bus segment is yet to see the adoption of e-buses. However, the
EV ecosystem across the country. Finally, the momentum gained from this overall penetration will continue to increase going forward.”
move will catapult India as the EV capital of the world.”
- Senior Vice-President & Co-Group Head – Corporate Ratings,
- Vice Chairman & Managing Director – JBM Auto ICRA

Source(s): Press releases, News articles, Secondary research, 1Lattice analysis © 1lattice | 22
Road ahead

The Government has undertaken several initiatives with an aim to increase electric buses
and developing of charging stations across India

With an aim to increase the electrification of buses Government is focusing on developing charging
in India to the grassroots level, GoI has announced infrastructure by incentivizing public and private
several schemes like e-bus Sewa, NEBP sector companies, integrating renewable energy, etc

National Electric Bus Programme (NEBP) Increase in public charging infrastructure

• GoIaims to deploy 50K e-buses pan • GoI has sanctioned the construction
India under NEBP by 2027 to bring a of 2,877 EV charging across multiple
massive turnaround in public fleet states, 1,576 stations across 16
management of STUs highways and 9 expressways by
2030 under phase II of FAME scheme
• It has announced an investment of INR
83K Cr to achieve the target

Development of fast charging technology

PM e-bus Sewa Scheme
• MHI has sanctioned INR 800Cr under
• Government aims to deploy 10K buses
phase II of the FAME India scheme to 3
along with supporting charging infra
PSU oil-marketing companies, i.e. Indian
across 169 cities with poor or no bus
Oil, Bharat Petroleum, and Hindustan
transport facility under the PPP model
Petroleum to set up ~7K fast-charging
• India and the US to provide joint support stations across the country
for a payment security
Integration of renewable energy
• Government plans to increase renewable energy generation
capacity to 500 GW by 2030. This will help in achieving
“Electric buses are expected to witness increased adoption going uninterrupted electricity for charging EVs, cheaper and EV charging
forward, aided by the favorable cost economics. While limited
charging infrastructure, range anxiety and high capital costs have Role of Private sector companies
been the key deterrents in electrification across segments, these are • Private players like Tata Power, Ather Energy, etc
relatively low for the bus segment. Overall, ICRA expects that electric
are investing in the development of fast-charging
buses are likely to account for 8-10% of new bus sales by FY2025.”
technology
- Vice President and Sector Head, ICRA Ratings
• The GoI has allowed 100% FDI in the EV charging
infrastructure sector

Source(s): Press Information Bureau, Press releases, News articles, Secondary research, 1Lattice analysis
© 1lattice | 23
Road ahead

The government, through its policies and key investments, aims to further support the EV
initiative aiming to convert all diesel buses to electric in key states by 2030

Government aims to boost production of e-buses Focus is on expanding the e-buses fleet by providing
in the future based on the large outlay proposed PLIs to e-bus manufacturers and by making crucial
and adoption of better technology investments

Promising future based Advancement Increased incentives Role of central and state
on FAME-III in technology to boost production governments
• The first draft of the FAME-III • The GoI has planned for the • The government has • By 2025, the government
scheme has proposed an adoption of lithium-titanate announced INR 18.1K Cr of plans to have about 8K
outlay of INR 40-50K Cr to batteries over the old Performance Linked e-buses in Delhi which will
promote EVs in the country lithium-ion ones in their Incentives for companies to account for 80% of the
e-buses manufacture electric overall fleet
• The government is
contemplating both demand • Lithium-titanate batteries vehicles, components and • The BMTC is set to
and supply incentives for are improved versions of advanced battery cells in augment its fleet of
supporting EVs, and is working lithium-ion batteries and India electric buses by 3.5 times
on two to three models to can sustain faster charging • The Union Budget recently taking the total number of
support the EV industry over rates, have a lower fire risk made an allocation of INR e-buses to ~2K and
five years and are lighter 35K Cr has been earmarked aiming to convert all their
for crucial capital diesel buses to electric by
Cleaner energy for charging investments aimed at 2030
achieving energy transition
• By 2030, the government plans to increase renewable energy and net zero targets by 2070
generation capacity to 500 GW, which represents 50% of total
energy requirements. If realized, this increase would reduce
pollution and provide uninterrupted electricity for charging EVs

Source(s): Press releases, News articles, Secondary research, 1Lattice analysis

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