India electric bus market expected 7,187

units by 2025

India is growing faster and faster in the electric vehicles segment! yes, you heard it right. India is not only growing in electric two-wheelers, three-wheelers and four-wheelers but also in the electric bus segment. Let us now look into the India electric bus market. 

The electric bus market is increasing in size, owing to government regulations and schemes, urbanisation and domestic manufacturing are raised and not to forget about the most important reason is the environmental concerns.

India electric bus market

The Indian electric bus market is expected to reach to 7,187 units by 2025 and CAGR of 53.0% during 2018-2025.

The environmental concerns and growing air pollutions in the states have made the government implement strict control regulations on emissions.

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

As we are witnessing the growing pollution every day, undoubtedly we can say automobile exhaust is one of the primary reason for the rising pollution levels in the country. To cut down the pollution levels the government’s Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) scheme was launched by the central government in May 2015. This was brought to increase the production and sales of electric vehicles.

Earlier, the scheme was only for two-wheelers, electric cars, and hybrid electric cars and later on September 17, it was modified and also included the electric buses.

Under this scheme, the government is providing two levels varying according to the localization level. For a minimum localization level of 35.0%, an incentive of up to $155,500 (INR 1 crore), 60.0% of purchase cost or whichever is lower is offered. Similarly, if the localization level is up to 15.0%, the incentive offered is $132,175 (INR 85 lakh) or 60.0% of purchase cost, whichever is lower.

100% Foreign Direct Investment (FDI) policy

Apart from that, there is another factor for the development of Indian electric bus market is, the manufacturers of electric buses can be encouraged by providing 100% Foreign Direct Investment (FDI) policy and must be supported under the Make in India scheme.

To make the electric buses more affordable these steps have been taken so that it can be made in lower costs. This kind of schemes can be predicted to give a boost to the domestic market manufacturing sector.

Therefore, we can clearly say that the electric bus market will be advance and ready by 2025 by the efforts of the government.

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( Source: Dagoretti News )

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