India has set a target of electrifying 40% of all new buses by 2030; however, current data indicates that progress remains limited.

According to Vahan data, only a small number of e-buses have been registered year-to-date, falling short of the 2024 peak.

This suggests that most activity this year has been concentrated at the order and production stages, with a gradual increase in registrations expected later in 2025 and early in 2026, as e-bus manufacturers typically require three to twelve months to fulfil orders.

In India, the Vahan platform serves as the integrated e-governance application under the National Transport Project for vehicle registration and management.

A recent report by a ratings agency indicates that the annual sales volume of e-buses in India is projected to increase in the coming years.

The Indian Government is supporting this transition through initiatives such as the PM e-Drive Scheme, which aims to deploy electric buses with a financial outlay of approximately Rs. 109 billion (US$ 1.2 billion) from April 2024 to March 2026 in major cities.

This is complemented by the PM eBus Sewa-Payment Security Mechanism (PSM) Scheme, which provides a financial safety net for operators and targets the deployment of additional e-buses to maintain the financial viability of operations.

State governments are using this support to place bulk orders to electrify their bus fleets. For instance, Karnataka, Delhi, Telangana, and Maharashtra have placed orders for electric buses within this year.

These orders are influencing the e-bus ecosystem, with original equipment manufacturers (OEMs) planning to expand production capacity to meet commercial demand.

E-bus manufacturer EKA Mobility intends to invest Rs. 8 billion this financial year to increase production capacity and facilitate delivery of buses to state governments and private operators, according to media reports.

Similarly, the International Finance Corporation (IFC) recently invested US$ 137 million into JBM Ecolife, part of JBM Auto and GreenCell Mobility, to support the deployment of e-buses and associated charging infrastructure across multiple municipalities in India.

These investments, combined with existing order volumes and government initiatives, are expected to contribute to the electrification of bus fleets in the country.