Olectra Greentech Ltd, a leading electric bus manufacturer, said the proposed $1-billion government support for private electric buses and trucks could accelerate the next phase of India’s electric mobility transition by expanding adoption beyond State transport undertakings (STUs) and government-led demand.
Olectra Greentech Managing Director Mahesh Babu said in a social media post that the proposed support comes at a crucial stage when electric mobility is emerging not only as a sustainability initiative but also as a national priority linked to energy security, economic resilience and future-ready growth.
Private sector seen as next growth engine
According to Babu, electric bus adoption in India over the past few years has largely been driven by government and STUs, helping build confidence in the technology and operational viability.
However, he said the next phase of growth must be broader and more market-driven with greater participation from private operators.
“In FY26, out of around 1,15,000 buses registered in India, nearly 17,000 were sold to government and STU segments, while only about 5,400 were electric buses,” he said.
Large opportunity in private mobility
With nearly 85% of bus registrations coming from private use, the larger opportunity lies in private sector adoption across employee transport, school buses, airports, tourism, intercity operations and staff mobility, he said.
For electric trucks, the proposed support could accelerate adoption in logistics, e-commerce, FMCG distribution, ports, mining, steel, cement and industrial transportation.
Fuel savings and economic resilience
Babu said the real benefits of electrification emerge from high-utilisation commercial vehicles that consume large volumes of fuel and significantly influence operating costs.
“India imports nearly $160 billion worth of fuel, with around 55% linked to mobility,” he said, adding that electrification of buses and trucks would help reduce fuel dependence and strengthen economic resilience.
EV penetration remains low
According to him, electric bus penetration in FY26 stood at around 4.71%, while electric truck penetration remained as low as 0.25%.
“With the right policy support, financing models and charging infrastructure, these numbers can move into double digits over the next few years,” Babu said.
He added that greater private sector participation could help India transition from policy-led adoption to market-led scale in electric mobility.