Government Tenders for Up to 10,000 Electric Buses Under Discussion

India's electric bus sector is preparing for substantial expansion as central and state governments discuss tenders for procuring between 7,000 and 10,000 electric buses. While the pipeline of upcoming procurements is expanding, delays in key procurement programmes continue to affect near-term deployment across the country.

Mahesh Babu, Managing Director of electric bus manufacturer Olectra Greentech, outlined the procurement landscape during the company's latest earnings call. He noted that the central government is currently discussing approximately 4,000 to 6,000 tenders, while various state governments are discussing an additional 3,000 to 4,000 tenders.

According to Babu, the broader trend points toward rising tender activity and EV adoption, although specific initiatives such as the PM eSewa tender face delays while remaining in the procurement pipeline.

Market data shared during the call indicates varied penetration levels across different vehicle categories. In the overall bus market, electric vehicle adoption currently stands at around 7 percent. However, adoption rates are significantly higher in specific segments.

In the 9-metre and 12-metre bus categories, electric models account for nearly 1,500 out of 7,800 buses, pushing EV adoption in those segments to almost 20 percent.

Electric bus uptake is particularly pronounced among state transport undertakings (STUs). Out of roughly 2,000 buses ordered or registered by STUs in the first quarter, 1,400 were electric vehicles, representing an adoption rate of nearly 70 percent in that segment.