India's EV Bus Boom: 40% Market by 2035 Forecast

A groundbreaking report forecasts a seismic shift in India's bus sector, with electric vehicles poised to dominate 35-40% of annual sales by FY35—up from today's 7%. Public transport could see e-buses comprising over 85%, revolutionizing urban commuting and environmental health. India's bus market, with 35,000-50,000 units sold yearly, is embracing electrification amid supportive government policies. Public procurement and infrastructure upgrades will be the primary growth engines. Notably, buses cover 57% of passenger travel distance nationwide, making their shift to EVs essential for carbon reduction and clean energy ambitions. KPMG India's Rohan Rao described the movement as more than regulatory—it's a systemic overhaul of mobility. 'Government programs, cost reductions, and infrastructure scaling have accelerated public transport's electrification,' he noted. Future efforts will prioritize domestic production, novel financing, widespread charging networks, and efficiency gains to foster long-term viability across sectors. Impressive figures reveal the scale: 62,000 e-bus tenders floated, 46,000 allocated via schemes. By March 2026, 16,300 e-buses rolled out, with 90%+ from state-backed efforts. By FY30, expect 40,000 more tenders, driven by federal and regional leadership. This trajectory not only promises emission cuts but also job creation in battery tech, manufacturing, and services. As cities grapple with pollution, e-buses offer a practical path to greener streets, aligning with India's net-zero vision and boosting energy security.