From 7% to 40%: India’s Electric Bus Surge by 2035

Electric buses are accelerating towards center stage in India’s transport mix. A new analysis predicts their annual sales share will climb to 35-40% by fiscal 2035, from about 7% now. In public fleets, this could surpass 85%, underscoring a commitment to eco-friendly transit.

With yearly sales at 35,000-50,000 units, the sector enters electrification’s next era, propelled by state purchases and infra boosts. Buses handle 57% of passenger-km, positioning e-bus adoption as a linchpin for emission cuts and sustainable development.

Rohan Rao from KPMG India calls it a ‘structural transformation opportunity.’ Beyond policies, momentum builds from procurement, cost efficiencies, and infra investments. The roadmap includes scaling local manufacturing, financing creativity, charger networks, and ops optimization for enduring public-private progress.

Data paints a vivid picture: 62,000 tenders issued, 46,000 buses greenlit under programs. March 2026 saw 16,300 e-buses on roads—90% government-driven—balancing speed with hurdles. By 2030, 40,000 additional tenders loom via central-state synergy.

This evolution heralds cleaner cities, lower fuel imports, and innovation hubs. Challenges like charging and supply chains persist, but strategic investments signal India’s readiness to lead global EV adoption, fostering a resilient, low-carbon mobility future.