E-bus majors take a back seat on payment delays

Smaller firms gain market share

- NITIN KUMAR

DELAYS IN FINALISING a robust payment security mechanism (PSM) under the Centre's electric bus procurement schemes have led to major original equipment manufacturers (OEMs) such as Tata Motors and VE Commercial Vehicles (VECV) staying away, creating space for smaller players such as PMI Electro, JBM Auto and Olectra Greentech to capture market share.

Due to concerns over delayed payments and the financial instability of many state transport undertakings (STUs), bigger players have been hesitant to participate in recent government tenders, especially under the PM e-Bus Seva scheme, which operates under the gross cost contract (GCC) model with 12-year term. In contrast, emerging OEMs, betting on long-term market potential and future viability, have aggressively pursued and secured these contracts.