Electric Buses Win Hearts in Indian Cities
In Pune, India, commuters are so impressed with the city’s new electric buses that many willingly skip older diesel buses to wait for a smoother, quieter, and cooler ride on the e-buses, even if it means waiting longer. But this popularity has led to a new challenge: overcrowding. The good news? Reinforcements are on the way.
The $7 Billion Push: PM-eBus Sewa Program
To transform urban mobility, India’s Ministry of Housing and Urban Affairs launched the PM-eBus Sewa initiative in late 2023. With an investment of $7 billion, the program aims to deploy 10,000 new electric buses across 169 cities, primarily focusing on small and medium-sized urban centres with populations up to 4 million, many of which currently lack an organised bus system.
The initiative reflects a broader vision: making public transportation, not private vehicles, the backbone of sustainable urban growth. As the world’s most populous nation, India faces a unique opportunity and challenge as its cities prepare to absorb an estimated 416 million additional residents by 2050 — the largest urban expansion projected globally.
Avoiding a Traffic and Pollution Crisis
India is already home to nine of the world’s ten most polluted cities, with transportation ranking as the third-largest source of emissions after power and industry. Without intervention, the expected urban population boom could lead to gridlock and hazardous air quality.
Fortunately, the majority of India’s 2050 urban infrastructure hasn’t been built yet, giving the nation a critical window to prioritize clean, electric public transit systems.
Building the Ecosystem: More Than Just Buses
PM-eBus Sewa isn’t just about the buses — it’s about building the infrastructure to support them. The program includes funding for:
- Bus depots and interchange facilities
- Fleet charging stations
- Advanced fare collection systems
- Reliable operations and maintenance frameworks
These efforts aim to improve connectivity, accessibility, and affordability, offering all residents a chance to reach school, work, and other destinations via sustainable transit.
Financing Innovation: The Gross Cost Contract Model
Electric buses cost more upfront, though they are cheaper to operate over their lifetimes due to lower fuel and maintenance costs. To support financially constrained cities, the initiative utilizes an innovative gross cost contract (GCC) model.
Under this model, a private operator — often the bus manufacturer — owns and operates the buses, handling everything from maintenance to staffing. The city pays the operator based on service delivery, spreading costs over time instead of facing a large initial burden.
“India’s cities want to run bus services but lack the funds for sustained operations,” said Surendra Kumar Bagde, Additional Secretary at the Ministry of Housing and Urban Affairs. PM-eBus Sewa gives them that support, while also opening up possibilities for more streamlined bus ticket booking systems.
Public Health and Climate Benefits
While electric vehicles (EVs) are crucial to cutting emissions, India’s climate goals also require a modal shift — meaning more people need to walk, bike, or use public transport. Research by the Institute for Transportation and Development Policy (ITDP) suggests that 50% of all travel must shift to these low-emission modes by 2050 to align with the 1.5°C global warming limit.
Electric buses contribute to this vision by reducing air pollution, thus lowering respiratory illnesses and improving overall public health. Data from the International Council on Clean Transportation (ICCT) further supports the environmental and health benefits of e-buses.
Early Success in Maharashtra
Maharashtra has been a frontrunner in India’s e-bus transition:
- Mumbai introduced its first six electric buses in 2017 and added 40 more in 2019.
- Pune deployed 150 e-buses using funds from the Smart Cities Mission.
- Navi Mumbai also launched 150 e-buses in 2019.
In interviews with transit officials, depot managers, and drivers, the consensus was clear: e-buses are a better alternative. Drivers noted easier handling in traffic, reduced physical strain, and a quieter, cooler cabin environment. Passengers in Pune were equally enthusiastic — a 2022 ITDP survey found that 78% preferred electric buses due to smoother rides, less noise, and air conditioning.
Scaling Up: Big Ambitions for the Future
In 2015, India had just three electric buses. As of early 2024, that number has grown to 7,757. Maharashtra alone accounts for 25% of all e-buses in operation and is currently procuring 5,150 more, the second-largest tender in the country.
After introducing PM-eBus Sewa, the central government set a national target of 50,000 new electric buses by 2027. But India’s plans go further. According to reports, the government intends to replace 800,000 diesel buses with electric models over the next seven years, including:
- 550,000 private charter e-buses
- 200,000 public transport e-buses
- 50,000 school e-buses
If these goals are met, India could become the global leader in e-bus deployment, while simultaneously strengthening its domestic EV manufacturing industry.
Conclusion
“India is undergoing a remarkable transition to electric mobility in public transport,” said Vaishali Singh, who leads ITDP’s bus electrification efforts in India. However, she cautions that the next steps will be even more complex, requiring cities to rethink charging infrastructure, maintenance planning, and workforce training.
As India transforms its public transport systems, it’s positioning itself not just as a climate-conscious nation but as a global model for sustainable development. If successful, this shift could help reshape cities into cleaner, healthier, and more livable spaces for millions, setting the pace for a greener future.