India can be a global leader in e-bus production: ICCT study
Launching the study, India’s former G20 Sherpa Amitabh Kant said the transition to electric vehicles (EVs), battery manufacturing, and component production could create millions of jobs and attract global investment.
India has the potential to become the world leader in electric bus production and deployment, aided by the Centre’s PM E-Drive initiative, which aims to electrify 40 national highways and establish reliable intercity e-bus routes covering 250–350 km, according to a new study released by the International Council for Clean Transportation (ICCT) on Tuesday.
The findings were unveiled on Day Two of the India Clean Transportation Summit (ICTS) 2025 in New Delhi.
The final day of the two-day summit – organised by ICCT with Norway as the partner country and supported by the Union ministry of heavy industries – brought together policymakers, industry leaders, and international experts.
Hindustan Times was the media partner.
Launching the study, India’s former G20 Sherpa Amitabh Kant said the transition to electric vehicles (EVs), battery manufacturing, and component production could create millions of jobs and attract global investment. “Scaling up e-bus tenders could lead to procurement of up to one million buses. The ministries of heavy industries and road transport must jointly take leadership and drive this transition,” he said.
Kant emphasized the need to address “range anxiety” by creating robust charging infrastructure along major corridors, exploring battery swapping for logistics, and devising financing and de-risking models to attract private players.
Cost and infrastructure barriers
The study, Electrifying India’s buses: Insights from public deployment and case study of private intercity operators, highlights three key challenges for scaling intercity e-buses: high upfront cost, infrastructure gaps, and financing hurdles.
It noted that intercity e-buses are priced between ₹1.5–2.15 crore, well above the ₹1–1.2 crore range required for mass-market adoption. Infrastructure remains another bottleneck, with private operators struggling to access depots and shared charging facilities, both requiring high capital investment.
Fragmentation in financing and operations is also slowing progress. “With no unified platform to streamline procurement, financing, and operations, private intercity operators face difficulties in scaling electrification,” the report said. Optimised battery sizes and strategically placed chargers, it added, could lower costs by up to 17% and shorten payback periods.
According to Amit Bhatt, ICCT’s India managing director, buses make up only 1% of India’s vehicle fleet but contribute 15% of road transport emissions. “India has already demonstrated effective strategies like demand aggregation and regulatory flexibility for e-buses. Extending electrification to intercity routes can reduce highway pollution while expanding bus services to a larger population,” he said.
The study suggests battery leasing and Battery-as-a-Service (BaaS) models to cut upfront capital lock-in and stabilise lifecycle costs. Conducted under the Zero Emission Bus Rapid-Deployment Accelerator (ZEBRA) programme, a joint initiative between ICCT and C40, the study also found that opportunity charging and optimized batteries could reduce operating costs by 12-17%.
“These steps are critical to unlock the full promise of electric intercity buses and shape a sustainable future for India’s transport sector,” said Bhaumik Gowande, ICCT associate researcher and lead author of the study.
Industry experts at the summit acknowledged the disruption EVs are bringing to India’s bus sector but stressed that challenges fall broadly into five categories: financing, infrastructure, operational hurdles, and regulatory and policy gaps.
“We need to explore models tailored to different distances and bring all stakeholders – the government, private players, and financiers – onto a common platform,” said Anantha Lakshmi Paladugula, head of mobility, C40. “A collaborative platform would act as proof of concept and help build ecosystem linkages.”
Private operators echoed concerns about cost and regulatory bottlenecks. Jit Shankar Banerjee, lead, public affairs and corporate communications at FLIXBUS, said although their fleet has over 250 buses, only a small fraction are electric. “The biggest challenge is upfront cost. Beyond that, transport regulations are controlled at the state level. Bus services are still seen as social services for the poor. There’s little understanding of premium AC buses. The government must change this mindset and provide access to ISBTs and charging infrastructure to complement new expressways.”
Deepro Guha, senior manager for public policy at The Quantum Hub, flagged similar concerns. “Despite holding All India Tourist Permits (AITPs), private intercity operators are often denied access to ISBTs. Delhi is an exception, but most states force buses to stop at inconvenient locations, raising safety concerns for passengers.”
Experts stressed that to truly position India as a global e-bus leader, widespread collaboration is essential. High capital costs, fragmented regulation, and lack of infrastructure cannot be solved in silos.
As Kant put it during the summit: “India has the scale, the market, and the innovation to lead the world in electric bus manufacturing. But success will depend on building the right ecosystems, enabling policies, and financing solutions.”
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