Electric Buses: A Boost for the Make in India Campaign; unbelievable !

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The Indian government’s push towards electric buses is set to revolutionize the transportation sector. With a ₹60,000 crore capital expenditure plan for electric buses, significant opportunities arise for companies involved in electric vehicle (EV) manufacturing. This initiative aims to reduce energy dependency, provide environmental benefits, and boost the “Make in India” campaign. As part of this grand plan, several EV stocks are currently trading at attractive discounts. Here’s a detailed look at the potential beneficiaries of this move.

electric buses

The Central government is also considering a mega electric bus mission with an outlay of ₹60,000 crore.


The Indian government’s focus on promoting electric buses is a strategic move to enhance sustainable transportation. This initiative aligns with the broader goals of reducing carbon emissions, enhancing energy security, and fostering the local manufacturing ecosystem under the “Make in India” initiative. The government is also incentivizing private bus fleet operators and institutional buyers to accelerate the adoption of electric buses.

The FAME Scheme and Government Initiatives

The Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme has been pivotal in driving the growth of the EV sector in India. Launched in 2015, the scheme had an initial outlay of ₹5,172 crore. FAME II, announced in 2019, had a budget of ₹10,000 crore and lasted until March 31, 2024. With the expiration of FAME II, the government is expected to announce the ₹10,000 crore FAME-III scheme in July 2024.

The Electric Mobility Promotion Scheme (EMPS) 2024

To further support the EV market, the government has introduced the ₹500 crore Electric Mobility Promotion Scheme (EMPS) 2024, focusing on subsidizing two- and three-wheelers. The upcoming 2024-25 budget is likely to include a budgetary allocation of about ₹10,000 crore to support electric two-, three-, and four-wheelers.

Mega Electric Bus Mission Plan

The Central government is also considering a mega electric bus mission with an outlay of ₹60,000 crore. The goal is to deploy 800,000 electric buses on Indian roads by 2030. This massive push is expected to create significant opportunities for electric bus manufacturers.

Major Electric Bus Manufacturing Companies

Olectra Greentech Ltd

Olectra Greentech shares were trading at ₹1,764 per share, reflecting a 0.61% decrease from the previous close. With a market capitalization of ₹14,463 crore, Olectra Greentech Ltd is a key player in the electric bus market.

  • Market Performance: Olectra’s shares have gained 45% in the last 12 months and 81% in the last six months. Currently, the shares are trading at a 21% discount from their 52-week high of ₹2,222.
  • Company Overview: Olectra manufactures electric buses and composite polymer insulators. The company is expanding into three-wheeled electric vehicles and electric trucks.
  • Technical Support and Orders: With technical support from BYD, Olectra has secured over 10,000 electric bus orders. The collaboration with BYD extends until December 31, 2030.
  • New Developments: Olectra is setting up a new greenfield factory in Seetharampur near Hyderabad, Telangana, with an investment of over ₹700 crore. It obtained a sizable order from the Maharashtra State Road Transport Corporation (MSRTC) for 5,150 electric buses in 2024.

JBM Auto Ltd

JBM Auto’s shares were trading at ₹2,032 per share, showing a marginal increase of 0.03%. The company has a market value of ₹24,079 crore.

  • Investment Plans: JBM Auto plans to invest ₹800 crore in Gross Cost Contract (GCC) special purpose vehicles (SPVs) from fiscal 2024 to 2026.
  • Manufacturing Capacity: JBM operates one of Asia’s largest integrated EV bus manufacturing facilities, capable of producing 10,000 electric buses.
  • Innovations: The company recently launched India’s first 100% electric luxury coach, the JBM GALAXY.
  • Expansion Plans: JBM Auto plans to raise $100 million in debt to expand its electric bus leasing business. Its shares are trading 16% lower than its 52-week high of ₹2,417.

Ashok Leyland Ltd

Ashok Leyland’s shares were trading at ₹236.10 each, marking a 0.88% increase. The company has a market value of ₹69,329 crore.

  • Market Position: Ashok Leyland’s shares are trading at a 3% discount from their 52-week high of ₹242.75.
  • EV Advancements: As the world’s fourth-largest bus maker, Ashok Leyland is making significant strides in the EV sector. The company is launching new electric vehicles, including light commercial vehicles (LCVs) and buses.
  • Manufacturing Facility: Ashok Leyland is establishing a new greenfield EV manufacturing facility in Lucknow, Uttar Pradesh, initially producing 2,500 electric vehicles annually.

Tata Motors Ltd

Tata Motors Ltd. shares were trading at ₹979 on the National Stock Exchange, marking a 0.24% increase. The company is valued at ₹3,25,567 crore.

  • Global Presence: Tata Motors has a strong global network with operations in multiple countries.
  • Electric Bus Supply: In 2024, Tata Motors supplied 100 electric buses to the Assam State Transport Corporation (ASTC) and 500 to the Delhi Transport Corporation (DTC).
  • Market Performance: The company’s shares are down by 8% from its 52-week high of ₹1,065.60.


The Indian government’s substantial investment in electric buses through the ₹60,000 crore capex plan is set to transform the EV landscape. Companies like Olectra Greentech, JBM Auto, Ashok Leyland, and Tata Motors stand to benefit significantly from this initiative. With stocks currently trading at attractive discounts, investors have a unique opportunity to capitalize on the growth potential of these EV manufacturers.

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