As we know that Electrical Vehicle Industry is booming in India, we are going to take a look at the Electrical Bus Ecosystem and India’s preparation for the adaptation of the new technology, and what Indian Government schemes are there for the rapid transformation to EVs.
It will be tremendous to see how one of the most preferred public transportations is going to be converted to fully electric, as India’s current Minister of Road Transport & Highways, Mr. Nitin Gadkari is also optimistic and cheerful about the future of Electric Vehicles In India.
Recent Initiatives of Government of India towards E-Bus segment
- This Year 2022, CESL-Convergence Energy Services Ltd. (Subsidiary of EESL- Energy Efficiency Services Ltd.) awarded a contract for 5,450 electric buses on behalf of five state governments. CESL is planning to launch a tender of $10-billion (Rs.80,000 Cr.) for 50,000 electric buses which is approved by NITI Ayog to decrease the pollution rate in India and also encourage the E-Bus Manufacturers.
- Delhi Government targets to add 8,000 Electrical Buses to Public Transport through DTC (Delhi Transport Corporation). Recently Delhi added 97 E-Buses, which were delivered by TATA Motors. Delhi government targets 80% Electrification of the DTC Fleet by 2025.
- In Mumbai, The Brihanmumbai Electric Supply and Transport (BEST) initiative will add two new electric buses to its fleet, including the first air-conditioned double-decker bus in the nation.
List of Government Schemes for Electric Buses in India
FAME – I
Under the National Electric Mobility Mission, the Faster Adoption and Manufacturing of Electric Vehicles (FAME) program was introduced in April 2015, to promote the purchase of electric and hybrid vehicles by offering financial assistance. Up till 2019, its first phase lasted four years.
- The second phase (FAME II) is a 3-year subsidy program. Its goal is to assist in electrifying shared and public transportation: around 7,000 electric and hybrid buses, 500,000 lakh electric three-wheelers, 55,000 electric four-wheeler passenger cars, and 1 million electric two-wheelers. Additionally, it funds the infrastructure for the 427 charging stations that were installed as part of the Phase-I of the Scheme.
- FAME II, with an outlay of INR 10,000 crores, is aimed to provide upfront subsidies and create EV charging infrastructure. This scheme proposes to support 7,090 e-buses with an incentive of up to INR 50 lakhs each. Bids to procure 5,580 e-buses have recently been sought by CESL under the ‘Grand Challenge’ as part of FAME II.
Convergence Energy Services Ltd (CESL)’s “Grand Challenge” Plan:
- CESL a PSU(Public Sector Undertaking) under the Union ministry of power, recently announced a tender of Rs 5,500 crore to introduce 5,580 e-buses (5,450 single-decker and 130 double-decker ones) across the nation.
- Under the scheme it is anticipated to provide Bengaluru with 1,500 E-Buses, Kolkata will get the maximum number of buses 2,000, Delhi with 1,500 E-Buses, Hyderabad with 300 E-Buses, and Surat with 150 E-Buses. Only these five cities made the final list out of 29 that were eligible for the Grand Challenge and had a population of more than 4 million.
Top Players in Electric Bus Segment
#1 Ashok Leyland Limited
- In August 2022, the first electric double-decker air-conditioned bus in India was launched by Ashok Leyland’s Switch Mobility. Switch now operates its twin-floor electric AC buses in the UK.
- These buses will replace the BEST (Brihanmumbai Electricity Supply and Transport) undertaking’s current fleet of double-deckers.
- According to the business, the electric double-decker AC bus EiV22 is powered by a 231-kWh battery pack with a dual gun charging system, giving it a range of up to 250 km for intra-city travel.
#2 Deccan Auto Limited
- This business has a technical relationship with Zhongtong of China, an exporter to more than 30 nations that are owned by the Chinese government.
- The first automaker in India to have its headquarters in Telangana and produce buses, lorries, and other electric commercial vehicles are Deccan Auto Limited. It is set on 20 acres and has a production capacity of up to 2998+ units annually.
#3 Olectra Greentech Limited
- The business was founded in 2000 and is a subsidiary of Megha Engineering and Infrastructures Limited, based in Hyderabad. BYD’s electric bus arm operates in India in a joint venture with Megha Engineering and Infrastructures Ltd, as Olectra Greentech.
- 100 electric buses from Olectra Greentech will be provided to Assam for Rs. 151 crores.
- Under the FAME-II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme of the Indian government, an order has been placed for 300 electric buses. Recently, Telangana State Road Transport Corporation granted Olectra an order for 300 electric buses worth Rs 500 crore (TSRTC).
- The country’s state transport undertakings (STUs), including those in Pune (PMPML), Mumbai (BEST), Goa, Deharadun, Surat, Ahmedabad, Silvasa, and Nagpur, are currently using electric buses that are operated by Olectra Greentech.
#4 Tata Motors Limited
- Tata Motors received a contract in August to provide the Bengaluru Metropolitan Transport Corporation with 921 electric buses (BMTC).
- According to the contract, Tata Motors will provide, operate, and repair the 12-meter Tata Starbus for a period of 12 years.
- This is the third-largest order a state government has placed with Tata Motors in the past month. Previously, Delhi Transport Corporation (DTC) and West Bengal Transport Corporation had placed orders with Tata Motors for 1,500 and 1,180 electric buses, respectively (WBTC).
#5 Eicher Motors Limited
- The joint venture between Eicher Motors and Volvo, Volvo Eicher Commercial Vehicles, has floated a separate subsidiary to produce, market, and run electric buses in sync with the growing trend.
- The subsidiary’s name, according to a senior official, is VE Electric Mobility.
- Recent participation by Volvo Eicher Commercial Vehicles (VECV) in a tender run by Convergence Energy Services, a branch of the government-owned Energy Efficiency Services has secured a contract to provide 150 e-buses to Surat.
- It’s crucial to remember that, back in February 2018, VECV was one of the pioneers in India who introduced and tested a zero-emission electric bus. At the time, VE Commercial Vehicles had installed the locally created electric technology, called “Revolo” on its bus platform, called “Skyline Pro”.
- Three Eicher Skyline Pro E buses operated in the pilot with West Bengal Housing Infrastructure Development Corporation (WBHIDCO), reaching 140 km per day, operating seven days a week, and maintaining 98% uptime for more than a year.
#6 EKA E9
- EKA, a subsidiary of Pinnacle Industries Ltd. and a maker of electric vehicles, said that the Automotive Research Association of India had certified its “9m pure electric, zero-emission bus, EKA E9” under the Central Motor Vehicle Rules (CMVR) (ARAI). The business announced that it would begin client trials and EKA E9 sales in the upcoming months.
- In Madhya Pradesh’s Pitampura, the business is preparing a new plant for the production of these buses that will be operational in about nine months and have a monthly production capacity of 300 buses. The organization, which has been chosen by the Center for the auto industry production-linked incentive (PLI) scheme, is expected to invest close to Rs 2,000 crore over the course of five years.
- The company is aiming for the CESL tender for 50,000 buses that are currently floated, as EKA E9 is now qualified to participate in tenders.
Indian Electric Bus Forcast
- According to forecasts, the Indian electric bus market would grow from $94.3 million in 2020 to $1,364.4 million in 2025, at a 48.8% CAGR.
- By 2030, NITI Aayog and RMI predicted that 80% of two- and three-wheelers, 50% of four-wheelers, and 40% of buses would be electric vehicles.