Tata, Eka, Volvo selected for e-bus sops, 15 others miss out

Requirement to source at least 50% of parts locally likely the main hindrance, experts say

- Manas Pimpalkhare

Only three automakers out of 18 have qualified for subsidies for electric buses under the government’s production-linked incentive scheme for automobiles and auto parts (PLI-Auto), through which it plans to disburse nearly ₹26,000 crore to strengthen India’s clean-mobility ecosystem.

The three companies—Tata Motors, Eka Mobility and Volvo Eicher Commercial Vehicles—have collectively received approvals for eight models of e-buses, the scheme's portal showed.

India's clean-mobility push comprises schemes such as PM E-drive and PM eBus Sewa, which aim to boost demand for cleaner buses on Indian roads. Simultaneously, the PLI-Auto scheme provides incentives to manufacturers of electric vehicles, including buses. However, the PM E-drive scheme's target of reducing the upfront cost of 14,028 buses and PM eBus Sewa's target of deploying 10,000 e-buses cover only a fraction of India's buses.

“Central government schemes are largely targeting the urban bus segment, which makes up only about 2% of the overall bus market. The big question is how to extend electrification to the remaining 98% of the bus market. That will be key to truly achieving scale,” said Amit Bhatt, India managing director, International Council for Clean Transportation.