While electrification is on the rise across vehicle categories in the Indian market, the electric bus (e-bus) segment has particularly seen a sharp growth in the recent past owing to various state transport undertakings (STUs) placing big orders for greener public transportation solutions.
According to Mahesh Babu, CEO, Switch Mobility, “India is making an intense push for faster adoption of electric buses, and the segment has seen exponential growth over the years. Given this scenario, one of the key expectations from the budget is continuation of the faster adoption and manufacturing of electric vehicles (FAME) subsidy, for at least few years and a reasonable EV penetration in the commercial vehicle segment.
“In order to democratise sustainable mobility, priority and access to funds, with payment guarantee by STU’s is a pragmatic solution for EV bus adoption. Hence, we hope to see measures, aimed at supporting financing and funding of electric public transportation projects, as bankability of contract is seen as high risk. Government’s support through priority lending would also help meet the aggregated demand. We hope the government continues its thrust on infrastructure and drives us forward on the path to higher growth,” Babu added.
Hitesh Garg, India Country Manager, NXP Semiconductors
Resonating with Babu’s thoughts, Hitesh Garg, India Country Manager, NXP Semiconductors, said, “The FAME-II scheme is currently slated to expire on March 31, 2024. We expect the government to continue with the effective measures to encourage the faster adoption and manufacturing of electric vehicles in India.”