OEMs increasing their focus on the Bus sector to drive growth in the post-Covid period.
Ashok Leyland. One of India’s leading commercial vehicle manufacturers, Ashok Leyland has announced plans to invest ₹1,000 crore in setting up an integrated commercial vehicle (CV) and electric bus (e-bus) manufacturing plant in Uttar Pradesh. This plant is expected to have a planned production capacity of 2,500 buses annually, with the potential for expansion to 5,000 buses per year.
This significant investment is a strategic move for the company and carries several implications and opportunities. This critical analysis examines the key aspects of this investment decision.
“Contingent on market adoption and demand of alternative fuel vehicles in the state, Ashok Leyland intends to invest up to ₹1,000 crore in this new facility over the next few years,” says Shenu Agarwal, Ashok Leyland MD & CEO.
Source: Times of India Read The Article
Olectra Greentech. The company’s decision to establish a greenfield electric vehicle (EV) manufacturing facility in Hyderabad, with an initial production capacity of 5,000 buses, trucks, and other EVs, expandable to 10,000 units, demonstrates a strategic response to the escalating demand for EVs.
Source: MercomIndia.com Read The Article
Government Support. The government is planning to spend nearly 580 billion rupee ($7 billion) to deploy 10,000 electric buses in 169 cities over a decade, along with charging and associated infrastructure facilities. Pursuing plans for an eventual fleet of 50,000 electric buses nationwide, at an estimated cost of $12 billion, the government has been aggregating demand from state governments and issuing contracts or tenders inviting companies to bid.
“With focus on reforming urban transport, we are trying to build a low footprint and high passenger density integrated EV mobility ecosystem” – Nitin Gadkari, Minister of Road Transport and Highways
Source: Economic Times Read The Article
PSR Analysis. The overall efforts from the entire ecosystem indicate a changing landscape of the bus segment and stakeholder’s long-term vision and confidence in the future of electric mobility of the segment.
Also, the government’s support opens up substantial market opportunities for manufacturers of electric buses. With careful planning and collaboration between the public and private sectors, this initiative has the potential to transform India’s public transportation. Additionally, this entire development would cut emissions and reduce fuel imports, with companies offering incentives to build vehicles and parts in the country. PSR
Aditya Kondejkar is Research Analyst – South Asia Operations for Power Systems Research
