Credit Ratings Agency ICRA Estimates Electric Buses To Form 10 Per Cent Of Total Bus Sales In India By FY25An electric bus from Ashok Leyland (Image credit: AutoCarPro)

Credit rating agency ICRA estimates that e-buses will comprise 8 per cent-10 per cent of new bus sales by FY25.

Furthermore, it asserted that this particular segment will lead the light of India’s electrification movement and is hence witnessing formidable traction as of now.

The central government’s Faster Adoption of Manufacturing of Hybrid and Electric Vehicles (FAME) initiative has already been lengthened by two years until 2024.

This initiative has set the wheel rolling for broader promotion of this segment in the medium term. This growth is despite the fact that there has been visible stress in the public transportation market over the last year and a half.

Yet, the ICRA noted that there had been an uptick in the e-bus segment in the past few months.

“Bus costs are the single largest cost element in electric bus projects, accounting for 75-80 per cent of project costs,” Srikumar Krishnamurthy, Vice President of ICRA Ratings, was quoted in a report by The Economic Times.

Krishnamurthy added, “With the capital subsidy of Rs 35-55 lakh per bus under the FAME II scheme, the capital subsidy element can fund a large part of the project costs, up to even 40 per cent, which augurs well for the viability of these projects.”

The agency also claims that because FAME-II rolls out capital subsidy only for buses through the gross-cost contract (GCC) model, it has become the preferred route for adopting electric buses in India.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement