Electric buses accounted for 4.5% of India’s total bus sales in FY26 (till mid-February), rising from around 3.5% in FY25, as central government tenders and aggregation models continued to drive adoption across states.
4,158 electric buses were sold out of 91,574 total buses during the financial year so far, reflecting steady growth in penetration despite stable overall bus volumes.
Industry stakeholders attribute the increase primarily to large-scale procurement under flagship schemes such as PM e-Bus Sewa and PM E-Drive, which aim to support state transport undertakings (STUs) through viability gap funding and centralized demand aggregation.
A major trigger for the uptick has been the rollout of bulk tenders, including a 10,900-unit electric bus tender floated in late 2025 — one of the largest such orders in the country. Deliveries under these contracts have begun translating into higher registrations.
States including Delhi, Assam, Maharashtra, Gujarat and Odisha have accelerated fleet induction since the beginning of the calendar year. Delhi alone inducted around 500 electric buses in a single day, underlining the speed of deployment under centrally supported programmes.
On the manufacturing side, PMI Electro Mobility Solutions led electric bus sales in FY26 so far, followed by Switch Mobility, Olectra Greentech and JBM Auto. Established commercial vehicle makers such as Tata Motors and Volvo Eicher Commercial Vehicles also continue to expand their presence in the segment.
Industry experts expect electric bus penetration to rise further over the next few years as tender execution gathers pace, charging infrastructure expands and gross cost contract (GCC) models offer better revenue visibility to operators.
With strong policy backing and funding support, electric buses are steadily transitioning from pilot deployments to becoming a mainstream component of India’s public transport ecosystem.
Click Here to get the latest EV news and exclusive updates from EV Mechanica on WhatsApp!