India Electric Bus Market by Fuel Type, Range, Battery Capacity, Battery Type, End Users, Autonomy Level, Application – Industry Analysis, Size and Forecast, 2019-2033

India Electric Bus Market Outlook

India electric bus market, once seen as a promising pillar in the country’s green mobility revolution, is currently at a critical inflection point. Despite strong policy push and technological advancements, electric bus sales have witnessed a decline, signaling systemic challenges that need urgent attention. In FY25, electric bus sales dropped to 3,124 units, approximately 400 units less than the previous fiscal year. This contraction, coupled with the market penetration falling to just 4.72%, highlights the hurdles India faces in scaling its electric public transport initiatives and achieving widespread electrification of bus fleets.

While the slowdown raises concerns, several developments point towards a resilient and adaptive market. For example, on April 22, 2025, Delhi flagged off 250 Mohalla Electric Buses under the Delhi Electric Vehicle Interchange (DEVI) scheme. These 9-meter air-conditioned mini buses are specifically designed for last-mile connectivity, operating out of Ghazipur, Nangloi, and East Vinod Nagar depots. With a range of 200 kilometers and the ability to charge in just 45 minutes, these buses not only cater to commuters efficiently but also highlight the viability of small-format electric buses for urban routes.

Innovative strides by private players are also reshaping the market. SUN Mobility, in partnership with Veera Vahana, introduced India’s first 10.5-meter battery-swappable electric bus for intercity travel. The modular battery-swapping technology is a game-changer—it reduces upfront costs by 40% and operational costs by up to 20%. This level of cost efficiency, paired with sub-three-minute battery swaps, addresses two major barriers in electric vehicle adoption: downtime and affordability. Given that over 90% of commercial vehicles in India are privately owned, such scalable solutions could lead to a 30% boost in electric bus adoption.

Pushing the envelope further is the Veera Mahasamrat EV, the world’s first 13.5-meter electric bus on two axles. Developed by Exponent Energy and Veera Vahana, it’s tailored for long-haul intercity routes like Bengaluru-Hyderabad. Armed with a 320 kWh battery pack and Exponent’s 1MW charging technology, the bus can charge in just 15 minutes. Its off-board thermal management ensures optimal performance even in India’s high-temperature conditions. This paves the way for rapid intercity route electrification and could redefine electric transportation beyond city limits.

Luxury in electric public transportation is also making inroads. JBM Electric Vehicles’ agreement with LeafyBus to supply 200 electric luxury buses, including 150 high-end intercity coaches and 50 e-buses for tourist and staff transport, signifies a pivot towards premium, sustainable travel. These vehicles, equipped with fast-charging capabilities and intelligent fleet management systems, have been tested across diverse Indian geographies, underlining their robustness and adaptability.

On the policy front, the Indian government’s recent allocation of ?3,000 crore for a new e-bus scheme demonstrates commitment. Through a Payment Security Mechanism (PSM), the scheme guarantees lease payments to manufacturers, safeguarding investments and encouraging participation. With additional support from USAID’s pledged ?1,500 crore, subject to final approval, this scheme under Convergence Energy Services Limited (CESL) could be a defining factor in future market growth.

States are also stepping up. Karnataka’s approval of a programme to induct 4,000 electric buses with a ?3,000-crore World Bank-backed loan is a powerful testament to regional leadership in clean transport. Bengaluru’s BMTC alone aims to significantly expand its already substantial electric fleet. By mid-2025, KSRTC plans to onboard an additional 300 electric buses, further supporting the state’s environmental goals and commuter convenience.

Technological progress continues to bolster India’s position on the global EV map. Exponent Energy’s 1MW rapid charging solution not only reduces turnaround times but also challenges global leaders like BYD. With ambitions to introduce the world’s first 1.5MW EV charging system, Exponent is creating a fully integrated charging ecosystem—battery packs, connectors, and stations—engineered for cost-effectiveness and scale. This integrated approach ensures that infrastructure keeps pace with rising EV demand.

Despite short-term setbacks in sales and market share, the Indian electric bus market is transitioning from experimentation to execution. Ground-level initiatives, strategic partnerships, and state-led programmes are creating a fertile ground for innovation, expansion, and adoption. The journey ahead may be complex, but the foundation being laid today—through bold policy, public-private collaboration, and disruptive technologies—has the potential to propel India into the forefront of electric mobility globally.

India Electric Bus Market Scope