JBM Auto Eyes 150,000 Electric Buses for State Transport Utilities by 2030

JBM Auto, a key player in the electric bus manufacturing sector, projects a surge in demand for electric buses among State Transport Utilities (STUs), estimating around 150,000 units by 2030. This forecast comes in light of a significant 79% increase in electric bus sales during FY24, driven largely by public sector entities.

In 2023, states like Maharashtra, Karnataka, and Gujarat led the way, contributing nearly 41% of the country’s new e-bus fleet additions. JBM Auto’s latest report highlights that STU demand is set to align with the government's ambitious target of 200,000 e-buses by 2030. Currently, India has around 4,000 operational electric buses.

To make this transition financially viable, Indian cities are leveraging the gross cost contract (GCC) model, where operators handle bus procurement and charging infrastructure. This model reduces upfront costs for STUs, with operators being paid per kilometer operated. JBM Auto notes that the total cost of ownership for e-buses is 15-20% lower than for traditional internal combustion engine buses over a 15-year span, with a breakeven point around six years.

To support this growth, the government has introduced a Payment Security Mechanism (PSM), ensuring timely payments to e-bus operators, a move that mirrors strategies used in the renewable energy sector. JBM Auto, capitalizing on this momentum, has secured significant contracts, including a ₹7,500 crore deal under the PM e-Bus Sewa scheme for 1,390 e-buses.

Further expanding its footprint, JBM Auto has partnered with MUON India to deploy over 2,000 electric buses in the coming years. With a manufacturing facility in Delhi-NCR capable of producing up to 20,000 e-buses annually, JBM Auto is poised to play a leading role in India’s electric vehicle revolution.

News by Rahul Yelligetti