Electric bus market to grow 10x in 3-4 years, to touch 10,000 units by 2025 says Mahesh Babu, Switch Mobility  | The Financial Express

Electric bus market to grow 10x in 3-4 years, to touch 10,000 units by 2025 says Mahesh Babu, Switch Mobility 

In an interview with Express Mobility, Mahesh Babu – Chief Executive Officer, India & COO, Switch Mobility said, we are projecting the electric bus market to grow by 10 times by 2025.

Electric bus market to grow 10x in 3-4 years, to touch 10,000 units by 2025 says Mahesh Babu, Switch Mobility 

The Indian bus market which was severely impacted by the pandemic has started crawling back on its feet. However, rising fuel prices, pollution and incentives for electric buses have pushed many state transport undertakings (STUs) and few private operators to look at electric buses as an alternative option. 

In an interview with Express Mobility, Mahesh Babu – Chief Executive Officer, India & COO, Switch Mobility said, we are projecting the electric bus market to grow by 10 times by 2025. So the bus market will swell from the current 1000 units a year market size to 10,000 plus.

“I’m expecting the volume to double this year and triple by next year. The primary reason behind the substantial amount of adoption of e-buses is mainly due to the FAME II subsidy and state transport under undertaking understanding of the new Gross Cost Contracting (GCC) model which has been set up by NITI Aayog.” he added. 

The GCC model requires the operator to procure the e-buses as well as implement the charging infrastructure, which saves cash-starved state transport undertakings (STUs) from making the initial capital investment. The operator is paid based on the number of kilometers the buses are operated.

“So the overall economics works in favor for STUs and that’s helping to build adoption in the public transport, particularly in STUs” he added. 

Challenges in the adoption of electric buses

The major challenge in the adoption of electric buses is finance. The current model of financing allows bus operators to pay back within 5-7 years but not for a long-term contract of 10 years. 

Also read: Viable financing schemes must for transition to electrification of  public transport

Babu said we are working closely with government banks. Any financial model with a new model like GCC needs risk mitigation learning technology, one would have to educate them.

According to Babu, the company is doing its best to give them confidence, how the new model started showing an inclination to finance and this will be a ga stepping stone for Switch to work in adoption towards private as well.

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