Riding The Momentum

India's bus market is riding a strong momentum, writes Ashish Bhatia.

- Ashish Bhatia.

After three difficult years during the COVID-19 pandemic, the bus segment clawed back, driven by a mix of pent-up demand, revived tourism, STU procurement, and a steady rollout of city e-buses.

The September 03, 2025, GST Council decision to reduce GST on buses and trucks to 18 per cent (from 28 per cent earlier) has provided a decisive policy tailwind at just the right moment. Girish Wagh, Executive Director, Tata Motors, on the GST Reforms announcement, averred, “Guided by the visionary leadership of the Hon’ble Prime Minister and the Hon’ble Finance Minister, the GST Council’s progressive decision to reduce the GST rate on Commercial Vehicles — trucks, buses, and ambulances — to 18 per cent marks a pivotal reform in India’s mobility landscape.”

Hailing it as a landmark reform, he opined that the reform will significantly accelerate fleet modernisation, driving the adoption of safer, smarter, and greener vehicles across India. “By resolving the longstanding issue of inverted duty for transporters, it unlocks greater affordability and liquidity, strengthening the entire commercial mobility ecosystem,” he opined. Further, the reduction in GST on hydrogen fuel cells to five per cent, as per Wagh, is a forward-looking move that reinforces India’s commitment to clean energy and zero-emission mobility. He lauded the timely intervention as a catalyst for sustainable growth in logistics and public transport, a boost to economic momentum, and a powerful enabler in India’s journey of inclusive growth and nation-building.