India’s electric bus (e-bus) market is expanding rapidly, with Vahan registrations rising 44 per cent year-on-year (y-o-y) —an increase of 1,325 units — to 4,341 buses in FY25-26 from 3,016 units in FY24-25, even as leadership changed hands.
The surge marks a clear inflection point for public transport electrification in India, with FY24-25 leaders such as Tata Motors and Olectra Greentech — which sold 1,058 and 710 buses, respectively — ceding ground to Switch Mobility, which emerged as No. 1 with 1,144 buses (up from 413), followed by PMI Electro Mobility at 1,113 (482) and JBM Auto at 1,052 (353) in FY25-26.
Individually, Switch Mobility nearly doubled its market share to 26.4 per cent, becoming the largest player. PMI Electro Mobility followed with a 25.6 per cent share, while JBM Auto climbed to 24.2 per cent, marking one of the sharpest scale-ups in the sector.
PMI Electro Mobility has gained ground with its depot-first strategy, focusing on Tier-2 and Tier-3 cities while offering end-to-end solutions including charging and maintenance. By clearing the “tender-to-tarmac” bottleneck faster than peers, it has emerged as a key beneficiary of schemes such as PM e-Bus Sewa.
Strategy: Bundling services
The common thread among the new leaders is their ability to go beyond manufacturing and offer integrated, service-led models — bundling buses with charging infrastructure, financing and long-term maintenance.
Switch Mobility’s performance is driven by strong backing from Ashok Leyland combined with the agility of a dedicated EV subsidiary, enabling it to win and execute large-scale tenders, particularly in high-volume corridors such as Chennai and Bengaluru.
JBM Auto, meanwhile, has scaled through aggressive participation in government tenders and consistent execution.
Calendar year 2024 data underscores how sharply the leadership order has changed. Tata Motors led deployments with 1,462 buses, followed by Olectra Greentech (630) and JBM Auto (556). By FY25-26, however, the top three had been reshaped, with Switch Mobility (1,144), PMI Electro Mobility (1,113) and JBM Auto (1,052) emerging as leaders — leaving JBM as the only player to retain its position in the top tier.
Olectra Greentech increased volumes from 710 to 853 units but saw its market share decline from 23.5 per cent to 19.6 per cent as competitors scaled faster. The company remains strong in key urban markets such as Mumbai and Pune, underscoring its position as a regional specialist.
Large players’ share erodes
In contrast, legacy commercial vehicle manufacturers have seen a sharp erosion in market share.
Tata Motors, which led the market in FY24–25 with a 35.1 per cent share, now holds just 4.1 per cent. The decline reflects a “strategic pivot towards financial prudence and focus on asset-light business model, and the company is instead, focusing on non CESL tenders”, said an analyst tracking the sector.
Other traditional players, including Volvo Eicher Commercial Vehicles (VECV), continue to face challenges in securing allocations, as the market increasingly rewards bundled service-led offerings — a dynamic analysts describe as the “zero allocation trap.”
Less words, more action
Industry players say the market is moving decisively from pilot projects to scaled deployments. “India’s electric bus market is at an inflection point, with strong policy support and improving economics accelerating adoption,” said Sanyam Gandhi, Whole-Time Director at Chartered Speed Ltd, which has secured a contract for 1,750 electric buses in Bengaluru along with Eka Mobility.
“We are seeing a clear shift from pilot projects to large-scale deployments, supported by initiatives like PM e-Bus Sewa and payment security mechanisms that are building confidence among private operators.”
He added that electric buses are now viable on a total cost of ownership basis even without subsidies, enabling wider participation from corporates and institutions.
“Looking ahead, we expect momentum to continue, with electrification expanding across metro as well as Tier-2 and -3 markets,” Sanyam added.