E-Buses to capture significant share of new bus sales

In an assessment by the In rating agency ICRA on Monday, electric buses are projected to constitute up to 13 percent of new bus sales by the fiscal year 2025 (FY2025).

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ICRA observed that numerous state Electric Vehicle (EV) policies have set specific targets and timelines for the adoption of e-buses, creating a comprehensive roadmap for electrification within the sector.

Highlighting substantial operational cost savings compared to conventional diesel buses, ICRA expects the demand for e-buses to continue its upward trajectory.

The agency anticipates electric buses to lead India's electrification endeavour, foreseeing robust growth in this segment. According to ICRA's report, e-buses are estimated to comprise 11-13 percent of new bus sales by FY2025.

ICRA also envisions government subsidies and advancing technologies playing pivotal roles in further driving down the capital costs associated with e-buses.

In its evaluation, ICRA noted a visible surge in traction within the e-bus segment over the past few years, with e-bus volumes and penetration levels consistently improving to reach 7 percent in FY2023.