NEW YORK, April 8, 2021 /PRNewswire/ -- In March 2019, the Indian government formally launched the second phase of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme. Further, in August 2019, the government announced plans to procure 5,585 electric buses, to help clean up the environment. With such strong government support, the Indian electric bus market value is predicted to increase from $94.3 million in 2020 to $1,364.4 million by 2025, at a 48.8% CAGR between 2021 and 2025.
Another such initiative is the Green Mobility Scheme, under which the government will deploy 26,000 paratransit and regular alternative-fuel buses in 103 cities. Other than the central government, those of 26 states and union territories have submitted proposals to jointly deploy 14,988 of these clean-energy vehicles. Yet another such move benefitting the Indian electric bus market is the total funding of $4.6 billion announced for battery manufacturers, to boost domestic production.
Key Highlights of India Electric Bus Market
- BEBs to continue to witness higher sales in coming years
- Nickelmetal hydride (NMC) batteries to gain rapid popularity
- Government initiatives biggest reason for market growth
- Highest demand for electric buses witnessed in South India
- Northern states rapidly procuring clean-energy buses
- Automakers launching buses with longer driving range