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JBM Group, a prominent auto parts maker and electric bus manufacturer, has projected a substantial rise in demand for electric buses within the State Transport Utilities (STUs) segment, estimating around 150,000 units by 2030. In the fiscal year 2024, electric bus sales surged by 79%, reaching a total of 3,607 units, largely driven by public sector entities, including state transport undertakings (STUs). This segment is anticipated to witness exponential growth, bolstered by multiple allocations under various tenders. In 2023, Maharashtra, Karnataka, Jammu and Kashmir, Telangana, and Gujarat emerged as the top five states driving the demand for electric buses, collectively contributing nearly 41% of the country’s new e-bus fleet additions, as reported in JBM Autos latest annual report. According to JBM Auto, e-bus demand in STUs is expected to reach approximately 150,000 units between 2024 and 2030, aligning closely with the government’s target of 200,000 buses. Currently, about 4,000 electric buses are operational in India. Indian cities primarily employ net cost contract (NCC) and gross cost contract (GCC) models, along with the owner-operator model. The GCC model, where the operator handles the procurement of e-buses and the establishment of charging infrastructure, alleviates the need for significant upfront capital investment by STUs. Operators are compensated based on the number of kilometers their buses operate. JBM Auto estimates the total cost of ownership (TCO) for e-buses to be approximately 15-20% lower than that of internal combustion engine (ICE) buses over a projected 15-year lifespan, with a breakeven point at around six years. Although e-buses currently have higher upfront costs compared to diesel or CNG buses, these costs are expected to decrease as manufacturers improve efficiency, localize production, and optimize battery costs. To support the adoption and sustainability of a business model for private players, the government has introduced a Payment Security Mechanism (PSM) that ensures timely payments to e-bus operators and OEMs by state governments. This mechanism is similar to the model used in the renewable energy sector, according to Nishant Arya, Vice Chairman & Managing Director of JBM Auto. Highlighting the company’s growth in the Indian e-bus market, Arya noted that JBM Group’s order book remains robust with new contract wins. The company has claimed a significant market share in the private bus segment. JBM Ecolife Mobility, a subsidiary of JBM Auto, secured a contract from Convergence Energy Services Limited (CESL) under the PM e-Bus Sewa scheme to operate 1,390 e-buses at a cost of ?7,500 crore. Arya further stated that JBM Auto aims to introduce an additional 3,000 e-buses in FY25. JBM Electric Vehicles, another subsidiary of JBM Auto, has signed an agreement with MUON India, a Macquarie Group company that has launched an EV financing platform in India called ‘Vertelo’. Under this agreement, JBM Auto will deploy over 2,000 electric buses for MUON over the next few years. JBM Auto, valued at ?5,009 crore, has established an electric bus manufacturing facility in the Delhi-NCR region, with a capacity to produce up to 20,000 e-buses and special-purpose vehicles. |
