The
Indian electric bus market is predicted to witness a sale of 7,187 units
by 2025, progressing at a 53.0% CAGR during the 2019–2025 period. In recent
years, the Indian government has come up with various policies and funding
schemes for electric bus and charging stations, mainly to address the problem
of increasing pollution levels in the country by promoting alternative fuel
vehicles (AFVs). Various public transport agencies have inked contractual
orders with manufacturers of electric buses for the adoption of such
low-emission vehicles.
Based
on vehicle type, the Indian electric bus market is bifurcated into a hybrid
electric bus (HEB) and battery electric bus (BEB). Of these, during the
forecast period, the BEB classification is predicted to maintain its dominance
in the market in terms of sales volume. This is attributed to the increasing government
support and lithium-ion (LI-ion) batteries’ reducing prices. On the basis of
length, the market is classified into electric buses of more than 10 m and less
than 10 m.
Between
these two, in 2018, electric buses of less than 10 m length held the dominating
sales volume share of more than 60.0% in the Indian electric bus market.
Length agnostic subsidy provided by State Road Transport Undertakings has
increased the preference for smaller buses in the nation. As per industry
experts, the average price of Li-ion battery cells for larger orders reduced
from nearly $1000/kWh in 2010 to approximately $333/kWh in 2018.
As
battery price makes up for around 40.0% of the electric bus manufacturing cost,
the reduced price of batteries is predicted to help the manufacturer keep the electric
bus prices under check. Furthermore, it is expected that the electric vehicle
cost, including for buses, would decline owing to the rising operational efficiency.
As for internal combustion engines it took decades of experience to lower down the
cost, the cost of electric vehicles is too
predicted to come down with technical developments, economies of scale, and bettering
operational efficiency, which is further expected to boost the Indian
electric bus market growth during the forecast period.
In
addition, with governments’ stringent regulations including emission norms and increasing
support in the form of grants and subsidies, the Indian electric bus market is
projected to grow. Besides, to deal with the rising concerns toward
environmental degradation, the government is planning to introduce electric and
hybrid bus services and also taking initiatives to promote electric bus manufacturing
across the country. Recently, the Ministry of Urban Development launched the
Green Urban Transport Scheme with the motive of completely eliminating carbon
emissions from public transport in the nation. Olectra Greentech Limited and
Tata Motors Limited are two of the prominent players in the market.
INDIA
ELECTRIC BUS MARKET SEGMENTATION
By
Type
·
Battery Electric Bus (BEB)
·
Hybrid Electric Bus (HEB)
By
Length
·
<10 m
·
>10 m
By
Battery
·
Lithium–Iron–Phosphate (LFP)
·
Lithium–Nickel–Manganese–Cobalt Oxide (NMC)
·
Others
By
Region
·
South
·
East
·
West
·
North
