Energetica India Magazine nº88 March-April 2020

India, primarily owing to the alarming pollution levels in Delhi, the country’s capital. Both, the central as well as state governments, have plans to press electric buses for public transportation in the city in a phased manner. Apart from Delhi, other states in the region are also doing their bit to reduce pollution; for instance, the Punjab government, under its New and Renewable Sources of Energy policy, supports the manufacturing of electric buses and batteries. Declining battery prices and rising operational efficiencies According to industry experts, the average price of Li-ion battery cells for large order declined from around $1000/kWh in 2010 to around $333/kWh in 2018. As battery accounts for around 25–40% of the electric bus manufacturing cost, the declining prices of batteries would help bus manufacturers to keep the prices of electric buses under check. Due to operational effi - ciencies, the cost of electric vehicles including buses would come down. According to research done by Prescient and Strategic Intel- ligence, as in the case of internal combustion engines (ICEs), whose costs have been reduced with decades of experience, the electric vehicle’s cost too will also continue to fall with tech- nical advancements, operational efficiencies, and economies of scale, benefiting the Indian electric bus industry during the forecast period. Government initiatives to drive growth for EV buses in India: The government’s strict emission norms and regulations, and support in the form of subsidies and grants are helping the In- dian electric bus market to drive more business in the country. Further to this, the government has planned to roll out fleets of electric and hybrid buses and has taken initiatives to encourage electric bus manufacturing within the country. The Ministry pro- posed a $3.6 billion (INR 250 billion) grant for the development of electric vehicles for public transport in the country. The 2020 budget also has many financial provisions that would assist the growth of the EV bus sector in India. Major players: Olectra Greentech Limited (operates in collaboration with BYD Auto Co. Ltd.), Tata Motors Limited, Ashok Leyland Limited, JBM Auto Limited (operates with its joint venture partner Solaris Bus & Coach SA), Optare PLC, Deccan Auto Limited (in technical association with Zhongtong Bus Holding Co. Ltd.), and Volvo Eicher Commercial Vehicles Limited; are the important players operating in the Indian electric bus market. An increasing number of local governments in India are pro- moting EV buses as a mode of public transport in their cities. With the government determined for the growth of EV buses as an environment-friendly transport facility, the sector has huge potential for future growth, according to experts. energetica INDIA- March-April_2020 43 ELECTRIC VEHICLE