E-buses take centrestage in energy transition

Mumbai, March 4: After scooters, electric buses are India’s focus when it comes to accelerating the shift to cleaner transport.

Ashok Leyland, the flagship company of Hinduja Group, broke ground last month on a manufacturing plant for electric commercial vehicles in UP.

The firm says the facility will have an initial capacity of 2,500 vehicles with production climbing to 5,000 annually over the next decade. It should be ready to start operations by the end of 2025.

“The focus will be on production of electric buses, while also having the capability to produce other vehicles powered by alternate fuels,” Ashok Leyland chief executive officer Shenu Agarwal said. “We will make products for Ashok Leyland and Switch Mobility from this plant,” he added, with reference to Leyland’s EV arm.

Tata Motors unit TML Smart City Mobility Solutions expects to deploy 3,300 e-buses on roads by fiscal 2025, and Olectra Greentech is constructing a new e-bus plant that’s forecast to

Ashok start production in July. It intends to deliver at least 2,500 e-buses by fiscal 2025.

India has set a target of adding 50,000 e-buses to its roads by 2027 as it seeks to reach net zero carbon emissions by 2070. It is a tall order considering the majority of the country’s fleet of 1.5 million buses run on diesel.

The biggest roadblock in increasing the uptake of ebuses is the lack of financing. India now follows a model whereby state agencies tender for buses from automakers but the operation of the vehicles, and any setting up of charging infrastructure, remains the responsibility of the auto manufacturers.

“The real challenge is the financial model given state transport units aren’t financially strong,” said Kavan Mukhtyar, partner and leader, automotive, at PwC India.

To tackle this, India has enlisted the help of the United States of America in establishing a paymentsecurity fund to cover the procurement of 38,000 ebuses. India will contribute $240 mn and the US government $150 mn and the fund will serve as a guarantee.

●INDIA HAS enlisted the help of the United States of America in establishing a payment-security fund to cover procurement of as many as 38,000 e-buses.