ICRA predicts ebuses to gain traction by FY2025

As per the new ICRA projection, e-buses are expected to gain good traction over the near to medium term and account for eight to 10 per cent of the new bus sales by FY2025. In the past few years, significant operational savings, especially on fuel costs vis-à-vis conventional diesel buses has helped the demand to pick up. Government subsidies and evolving technologies are known to reduce capital costs further, supporting low TCO of these vehicles. The Gross-Cost Contract (GCC) model, or opex model of operations, has emerged as the preferred route for ebus adoption in India. The FAME II scheme implemented by the Department of Heavy Industries (DHI) is known to have planned a significant outlay of USD. 35 billion towards supporting ebus adoption in India. Under the scheme, seven metre, nine metre and 12 m electric buses are eligible for a capital subsidy of Rs.35 lakh, Rs.45 lakh and Rs.55 lakh respectively, subject to them meeting technical specifications and localisation requirements.