PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1484689
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1484689
Key Highlights
The Indian electric bus market was valued at USD 282.7 million in 2023, and it will increase to USD 905.4 million, powering at an 18.2% compound annual growth rate, by 2030.
The national population numbers continuously surge, and so does the count of automobiles both commercial and passenger.
The emissions from these automobiles are declining the quality of air, which is becoming a key health problem.
Considering this, the government of India has already shifted to the BS-VI emission rules from the BS-IV emission rules from 2020 onward.
The urban populace in this nation has soared speedily in the last few decades. Thus, the reliance on public transportation and the requirement for sustainable transportation systems have significantly increased over the years.
The government is encouraging the acceptance of zero-emission buses via different environmental awareness campaigns.
The increasing partnerships between global and domestic original equipment manufacturers are the major trends being observed in this industry.
With the Indian government's employment of strict policy on vehicular pollution, the need for low-emission public transport has been increasing in this nation.
As electrically driven buses are being supported and promoted via financial encouragement by the government, traditional buses are likely to be phased out in the years to come.
Anticipating the increasing need for e-buses in the nation, global players have entered tie-ups with domestic companies to establish vehicle assembly sites in the nation.
Market Insights
North India is likely to propel at the fastest compound annual growth rate, of over 18.5%, during this decade. This is mainly because of the support offered by the state governments to increase the acceptance of these buses.
The BEB category will observe a higher growth rate, of 18.4%, in the coming years, and the category also accounted for the largest share in 2023.
This can be because of the accessibility of incentives, subsidies, and various other financial assistance to encourage the adoption of environment-friendly buses.
The less than 10 m bus category will be the largest contributor to the industry in the coming years. The low price of these buses is an important reason that will boost their sales during this decade.
The LFP category was the largest contributor to the industry in 2023, with more than 50% share. LFP batteries are safer compared to others and can charge at a high speed, making them a greater choice for large commercial automobiles.
Most e-buses employ LFP batteries as they are less expensive to produce than other batteries. Therefore, cost sensitivity has been a major reason for the decision to utilize these batteries in e-buses.
The intracity category led the industry in 2023, with approximately 70% share. This can be primarily because of the speedy urbanization as well as the increasing environmental worries.
The government incentives, policies, and programs, aiding domestic manufacturing have been resulting in this category expansion.
The Indian electric bus industry is very consolidated, owing to the existence of few companies providing these vehicles.
Buoyed by the Indian government's schemes like beneficial policies and incentives to increase EV acceptance, other automakers are also entering the industry.