India’s electric bus market accelerates on policy push and private capital

India’s electric bus market is gaining strong momentum, supported by government incentives, ambitious climate targets and declining battery costs. Registrations rose 33% in the first half of 2025, even as large public procurement programmes such as the PM E-Drive scheme and city-level deployments continue to shape demand.

Market leadership remains concentrated among a handful of manufacturers, while new business models—such as electric bus leasing and integrated charging—are opening the segment to private operators. With e-buses projected to account for up to 40% of India’s bus fleet by 2030, the transition is accelerating, though sustained growth will depend on improved financing, charging infrastructure and policy clarity

The future of electric buses (e-buses) in India is bright, driven by government support, rising environmental goals (net-zero by 2070), and falling battery costs, with projections of a 10-12 per cent share by FY27 and 30-40 per cent by 2030. Key trends include the expansion to smaller cities, the integration of IoT/AI, private sector growth, and the development of charging infrastructure. However, challenges such as high initial costs and charging network gaps remain, necessitating better financing, policy clarity, and robust supply chains for the full realization of these trends.

In essence, India's e-bus journey is accelerating, transforming public transport with technology and policy, but sustained momentum requires addressing financial, infrastructural, and regulatory hurdles.

India registered 2,100 electric bus units between January and June 2025, marking a 33 per cent increase compared to the 1,571 units recorded in the first five months of the year. The uptick—particularly strong in June—highlights the continued momentum in the segment, which remains structurally shaped by public procurement cycles and policy-driven demand.

According to data compiled by Sustainable Bus from the government Vahan portal, five manufacturers account for over 90 per cent of the market, reflecting a strong concentration around a few high-performing players.

In June, India initiated a large-scale procurement process for the deployment of 10,900 electric buses under the central government’s PM E-Drive scheme. Chennai has just deployed 120 units of e-buses.

PMI Electro Mobility leads the half-year ranking with 542 units and a 25.8 per cent market share. Its performance was driven largely by the spring months, with April and May alone contributing over 60 per cent of total deliveries. Switch Mobility follows closely with 503 e-buses (24.0 per cent), showing consistent output across the first quarter and a strong rebound in June after a temporary pause in April. Olectra Greentech takes third place with 366 units (17.4 per cent), maintaining a steady delivery pace throughout the semester. JBM Auto made a strong comeback in June, registering 111 units—more than a third of its total for the semester. With 298 units overall, the company secured a 14.2 per cent share.

Once a dominant player in India’s electric bus landscape, Tata Motors registered 132 units (6.3 per cent) in H1 2025, reflecting a quieter phase compared to its 2024 leadership when it logged over 1,400 electric bus registrations.

Among emerging manufacturers, Pinnacle Mobility Solutions gained visibility with 126 units, almost entirely in June. Aeroeagle Automobiles, though absent in the second quarter, recorded 63 deliveries in the early months of 2025. Other players such as Veera Vahana, Mytrah Mobility, and JBM Electric Vehicles Pvt Ltd reported minimal volumes.

ElectriGo, a full-stack electric bus leasing platform enabling India’s next phase of zero-emission mobility, has officially launched its electric bus leasing offering targeting private bus operators. ElectriGo has announced the signing of a Memorandum of Understanding (MoU) with Green Energy Mobility Solutions Ltd (GEMS) for the deployment of 50 electric buses across key transport routes. The MoU was formalised on 1st August 2025 in Chennai and marks a significant step in accelerating the commercial adoption of electric buses in public and contract transportation. To support its operations, GEMS today announced the launch of Ziel Mobility, a green aggregator ecosystem focused on electric passenger buses and electric trucks.

ElectriGo emerged from the success of Turno, India’s largest electric small commercial vehicle (eSCV) platform launched in 2021 by former Zoomcar CXOs Hemanth Aluru and Sudhindra Reddy. Turno transformed EV adoption in underserved retail markets through innovative financing, a battery buyback guarantee, and deep expertise in battery repurposing—unlocking real Total Cost of Ownership (TCO) benefits for operators. Building on this foundation, ElectriGo was launched in 2024 to bring the same mission-led approach to the electric bus ecosystem with integrated charging infrastructure, proactive maintenance, and real-time telematics, enabling operators to deploy electric buses with confidence and predictable performance.

As part of this agreement, ElectriGo is delivering the first tranche of 10 electric buses in Hyderabad on 16th December. These vehicles will operate with complete maintenance and operational support from ElectriGo, ensuring high uptime, enhanced fleet efficiency, and seamless daily operations for the operator. ElectriGo has established a presence across key markets across the country, such as Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, Gujarat, Rajasthan, and Delhi-NCR.

This partnership reinforces ElectriGo’s commitment to enabling scalable, dependable, and economically sustainable electric mobility solutions. By 2026, electric buses will become standard in urban transport, driven by government support (like India's FAME/PLI schemes) and growing demand, with major shifts including new players like VinFast entering markets, improved component tech (batteries, air springs), and focus on sustainable interiors, even as infrastructure builds and some cities like Rome aim for 40 per cent e-bus fleets, signifying rapid global adoption.