India’s electric bus (e-bus) adoption is poised for strong growth, with electric buses expected to account for 35–40% of total annual bus sales by FY35, according to a recent KPMG report.
This projection marks a significant milestone in India’s clean mobility journey and underscores the critical role public transport electrification will play in achieving the country’s decarbonisation targets.
Buses currently account for a massive 57% of passenger-kilometres travelled in India. Because of this dominant share, electrifying the bus fleet has become central to India’s strategy for reducing transport sector emissions and improving urban air quality.
Current Status of Electric Buses in India (as of March 2026)
- Operational E-Buses: Approximately 16,300
- Buses Awarded under Government Schemes: Around 46,000
- Total Tenders Issued in Last 6 Years: Nearly 62,000
These numbers reflect steady progress, but also highlight the gap between tenders/awards and actual on-road deployment. While thousands of electric buses have been awarded, only about one-third are currently operational, indicating challenges in execution, infrastructure, and financing that still need to be addressed.
Strong Government Push Driving Momentum
The growth in the e-bus segment has been largely supported by central and state government schemes, including:
- FAME-II scheme
- PM E-DRIVE scheme
- Various state-level electric mobility policies
These initiatives have encouraged state transport undertakings (STUs) and private operators to gradually shift towards electric buses.
Electrifying buses offers multiple benefits:
- Significant reduction in diesel consumption and import dependence
- Lower operational costs over the vehicle’s lifetime
- Major improvement in air quality, especially in densely populated cities
- Creation of new jobs in manufacturing, charging infrastructure, and maintenance
Reaching 35–40% market share by FY35 would represent one of the fastest transitions in the global public transport sector and would put India among the leading nations in e-bus adoption.
The Road Ahead
While the outlook is optimistic, several challenges remain — including high upfront costs, need for robust charging infrastructure, battery swapping/standardisation, and ensuring reliable power supply for depots.For sustained growth, experts believe continued policy support, innovative financing models, and greater participation from private fleet operators will be essential.
The KPMG report sends a clear signal: India’s e-bus revolution is gaining serious momentum. With buses carrying more than half of the nation’s passenger movement, accelerating electrification is not just an environmental imperative but also an economic and strategic necessity.
The coming decade will be decisive in determining whether India can successfully transform its massive bus fleet into a cleaner, greener, and more efficient transport system.
