In Short
Electric buses in India face significant hurdles, particularly in the private sector, where adoption remains minimal despite the country’s ambitious climate goals. India aims to cut carbon emissions and achieve net-zero by 2070, with road transport being a key focus due to its substantial contribution to emissions. The government has incentivized the electrification of various vehicle categories through schemes like FAME II and PM e-Bus Sewa, but private intercity and interstate buses, which constitute 93% of the bus fleet, are largely excluded. The high cost of electric buses, which is three times that of diesel models, deters small operators. Additionally, limited financial options and inadequate charging infrastructure further obstruct the transition. While state transport units have seen some success with electric buses, the private sector lags behind, facing both financial and operational challenges.
Key Points
- Private buses make up 93% of India’s total bus fleet, yet lack incentives for electrification.
- Electric buses cost about three times more than diesel buses, making them unaffordable for small operators.
- Government schemes like FAME II and PM e-Bus Sewa have promoted electric vehicles but primarily focus on public sector and urban transport.
- India aims to cut carbon emissions by 1 billion tonnes by 2030 and reach net zero by 2070, with road transport as a critical area of focus.
- Approximately 7,000 electric buses are currently operating in India, mainly in urban areas, out of a total of 20 lakh buses.
- Private intercity and interstate electric buses are scarce, with few operators like Neugo and Prasanna Purple offering premium services.
- Leasing options for electric buses are limited, with banks and NBFCs hesitant to offer long-term leasing solutions, which are necessary given the high upfront costs.
- Charging infrastructure for buses is underdeveloped, further complicating the adoption of electric buses in the private sector.
