As the market for electric vehicles, particularly electric scooters, bikes, cars, and three-wheelers, grows fast in India and around the world, so does the demand for electric buses. In 2028, the worldwide electric bus market would have grown to 544 thousand units, with a CAGR of 11.58 percent during the projected period. Continue reading to learn more about the electric bus sector and its tendencies.
The cost of electric vehicles is higher due to the battery, which accounts for 40% of the cost of an electric bus. According to ReportLinker research, the average cost of lithium-ion battery packs for big orders has dropped from around $600 per kilowatt-hour in 2015 to $150 per kilowatt-hour in 2020.
Last year, more than 82,000 electric buses were sold, with a CAGR of 14.9 percent expected through 2026, according to the report. In 2020, the market for electric buses will be worth more than $28 billion. The expansion of the bus market is primarily due to the major automotive businesses that manufacture the vehicles.
The global electric bus market is expected to grow at a CAGR of 43.1 percent from 81 thousand units in 2021 to 704 thousand units in 2027. The electric bus industry is growing due to countries’ increased attention on boosting electrification of mass transit options and government backing.
The increased use of electric transit buses, fueled by pro-green government regulations, has enabled worldwide sourcing and supply chain for alternative powertrain buses, according to Frost & Sullivan. The entire electric bus market, which includes hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), battery electric vehicles (BEVs), and fuel cell electric vehicles (FCEVs), is expected to rise at a CAGR of 13.9 percent to 211,000 units by 2030.
Transport sector is responsible for 23% of global CO2 emissions
The transportation industry is responsible for roughly 23% of global CO2 emissions connected to energy use. In comparison to other countries, India’s grid has a high carbon intensity of 950 gCO2/KWh. As a result, more proactive and sustainable methods in the transportation sector are required. One strategy to mitigate pollution caused by carbon emissions and counteract the health risks associated with pollution is to utilize efficient automobiles that consume little energy and clean energy.
Tata Motors, Olectra-BYD, Foton PMI, JBM Solaris, and VECV are among the 6 major electric bus manufacturers in India today. It has also attracted overseas investors. According to JMK Research, the electric bus market has grown by more than US$1 billion in recent years due to investment deals totaling more than US$1 billion.
In the following two years, India could add 6,490 electric buses, with 1850 units in FY2020-21 and 4640 in FY2021-22. It added 1,031 electric buses in March 2020, 600 in the fiscal year 2019-20, 400 in the fiscal year 2018-19, and 31 in the fiscal year 2017-18.
In the post-2020 era, electric vehicles are one of the most promising technologies in the transportation sector for reducing GHG emissions. It has the advantage of not emitting tailpipe pollutants and producing very low fuel emissions, making it environmentally beneficial.
However, due to the numerous obstacles involved with the vehicle as well as the establishment and administration of supporting infrastructure, implementing the electric bus has proven difficult. Because of the development of new technology, support infrastructure, and investments, widespread adoption of electric vehicles is difficult.
The mobility of the electric bus necessitates large storage batteries, which take a long time to charge and are costly. Additionally, the high-capacity batteries required for pure electric buses are not manufactured domestically. The nature of charging devices linked with the batteries is also lacking.
Global electric bus market and trends
BYD received Israel’s largest electric bus order
Following a recent trend in electric vehicles and the electric bus category, Egged, Israel’s public transport operator and largest bus company, has purchased 100 BYD completely electric 12-meter buses. The electric buses must arrive by the end of 2022 and will be used in Haifa. This electric bus order is the largest from Israel to date for the Chinese bus maker.
It’s part of a bigger Israeli tender for 200 buses, which is backed by the country’s transportation administration. Egged has been a customer of BYD since 2017 and currently operates 24 BYD electric buses in Haifa and Jerusalem, according to the Chinese company.
Nir Landau, Director of Egged’s Procurement Division, said: “Nowadays, the trend of bus electrification is very obvious. It is a clear signal of our commitment to transitioning to zero-emission transportation for a better environment for Israeli residents. Having worked with BYD for many years, we have great confidence in this new batch of pure-electric eBuses.”
JBM Auto bags order for 200 low floor electric buses
The Delhi Transport Corporation (DTC) has placed an order for 200 electric buses with JBM. The order was issued under the FAME II electric vehicle policy of the central government.
“This is to inform you that the company has received prestigious order for supply, operation and maintenance of 200 air-conditioned fully built low floor electric buses of 12-meter length from Delhi Transport Corporation under Government of India’s flagship FAME II EV Policy,” JBM Auto said.
Under the BRTS scheme, it also introduced its Eco-Life electric AC buses in Ahmedabad in March. Out of 180 buses, the first batch of 50 Eco-life buses has been launched. The buses were delivered to the Vastral BRTS Depot by the JBM Group. Gujarat’s Chief Minister, Vijay Rupani, and Gujarat’s Home Minister, Pradipsinh Jadeja, were virtually present at the Depot’s inaugural ceremony.
CTU deploying electric buses
The CTU (Chandigarh Transport Undertaking) has announced the arrival of the first batch of electric buses. Around 12 buses are planned to begin service on December 1st, with a total of 28 electric buses accessible for city commuters by mid-December.
Chandigarh will receive 80 electric buses from the Centre. A ten-year agreement has been inked with M/s Ashok Leyland for the first batch of 40 buses. In August of this year, the CTU received its first electric bus. By 2027-2028, the transportation agency intends to replace all 358 diesel buses in the Tricity with electric buses.