India Eyes ₹6,000 Cr Electric Bus Tender; Auto Giants Vie for Orders
Overview
India's government is launching a ₹6,000 crore tender for 6,230 electric buses across five major cities, including Delhi and Mumbai. Major manufacturers like Tata Motors, Ashok Leyland, and Olectra Greentech are poised to compete for this significant business opportunity, marking a substantial push for electric mobility in the country's public transport sector. Bids are open until March 10.
New Delhi – India's leading electric bus manufacturers are preparing for a substantial government tender valued at over ₹6,000 crore, covering 6,230 electric buses. These vehicles will be deployed across five key cities: Delhi, Mumbai, Pune, Ahmedabad, and Hyderabad. Tender documents released on January 9 detail the procurement process.
Tender Details and Allocation
Delhi will receive the largest share, with 3,330 electric buses allocated to address severe air pollution concerns. Mumbai is slated to receive 1,500 buses, followed by Pune with 1,000. Hyderabad and Ahmedabad will each receive 200 buses. The tender accommodates various bus configurations, including 7-metre, 9-metre, and 12-metre models, with options for both air-conditioned and non-air-conditioned variants.
Competitive Landscape
The tender submission window opened on January 9 and closes on March 10. This latest procurement follows closely on the heels of the country's largest-ever tender for 10,900 e-buses under the PM E-Drive scheme. In that previous round, new entrants PMI Electro Mobility and Eka Mobility secured over two-thirds of the contracts. Legacy players such as Tata Motors, Ashok Leyland, and VE Commercial Vehicles Ltd, who secured limited orders or none in the prior tender, view this new opportunity as critical for market share.
Business Model and Value
Convergence Energy Services Ltd (CESL), a government undertaking, issued the tender. The procurement utilizes the Gross Cost Contracting (GCC) model, where payments are made on a per-kilometer basis over a 10-12 year period. This model allows automakers to focus on manufacturing, while fleet operators manage the buses. With electric bus prices ranging from ₹85 lakh to ₹1.8 crore, this tender represents over ₹6,000 crore in potential business for manufacturers, assuming an average price of ₹1 crore per unit.
