India is experiencing a major and rapid transformation in its urban transport landscape. Driven by policy momentum, regulatory mandates and ambitious net zero targets, the country is making strategic investments in large-scale electric bus (e-bus) deployments as well as a burgeoning electric vehicle (EV) charging infrastructure ecosystem. Together, these elements are reshaping the way Indian cities address mobility challenges by advancing sustainability, improving air quality, reducing congestion and enhancing public health outcomes.
Robust policy push
On the policy front, the central and state governments are implementing reforms and frameworks aimed at accelerating EV adoption and establishing a robust, integrated battery and EV manufacturing base. The Ministry of Heavy Industries has extended and amended the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme to accelerate adoption and build an integrated battery and EV manufacturing base in India. The scheme, with an outlay of Rs 109 billion, has been extended by a period of two years and is now valid till March 31, 2028. Moreover, if the funds of the scheme are exhausted prior to the terminal date, March 31, 2028, the scheme or its relevant subcomponents will be closed accordingly. Subsidies for registered electric two-wheelers, e-rickshaws, e-carts and e-three-wheelers (L5) will end on March 31, 2026. Meanwhile, the Electric Mobility Promotion Scheme 2024, implemented for a period of six months from April 1, 2024 to September 30, 2024, is subsumed in the PM E-DRIVE scheme.
In addition, the PM-eBus Sewa scheme has been launched for augmenting city bus operation by deploying 10,000 e-buses on the public-private partnership (PPP) model. As of July 31 2025, more than 7,200 e-buses have been sanctioned under the PM-eBus Sewa scheme. The scheme not only provides procurement subsidies but also supports operational costs, extending over a 10-year period to ensure financial viability for fleet operators. The emphasis on e-buses is a response to the high diesel consumption prevalent in the country’s transport sector.
E-bus deployment is further incentivised by the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme, which supports demand for electric two-, three- and four-wheelers, especially for commercial and public sector fleets. A total of
Rs 9.13 billion has been sanctioned for the installation of 9,332 EV public charging stations (PCSs), of which 8,885 EV PCSs have been installed, as of June 30, 2025.
In a notable milestone, as of June 1, 2025, 29 states and union territories (UTs) have notified their EV policies and another four states have draft policies under consideration. Supporting the effective design of state EV policies and enabling impactful state-level action for electric mobility can significantly improve EV adoption. This, in turn, can accelerate the development of a domestic manufacturing industry for EVs and EV components, reducing the country’s reliance on imports and positioning India as a global hub for EV manufacturing.
To build upon this, NITI Aayog’s India Electric Mobility Index (IEMI), launched in August 2025, is a first-of-its-kind tool developed to comprehensively track and benchmark the progress of states and UTs in achieving their electric mobility goals. The IEMI identifies key drivers of success as well as areas requiring targeted interventions. It aims to inform decision-making, foster healthy competition among states and promote the sharing of best practices.
EV charging infrastructure
Robust charging infrastructure is essential for large-scale EV uptake, especially for public fleets and intercity connectivity. India’s network of public EV charging stations has grown tremendously, from 5,151 units in 2022 to 29,277 by August 2025. However, most installations remain concentrated in urban areas. Despite this progress, India faces a major infrastructure gap. Industry estimates suggest 1.32 million PCSs will be needed by 2030 to support 50 million anticipated EVs, while the ratio of chargers per EV lags behind global benchmarks.
Recognising the critical role of charging infrastructure, the government has introduced guidelines for availing subsidy for EV charging stations, battery swapping stations and battery charging stations, offering up to 100 per cent subsidies. Released in September 2025, the guidelines under the PM E-DRIVE scheme identify entities that are eligible for subsidies and offer support for deployment of upstream infrastructure costs, and in certain cases, for EV supply equipment costs.
Several states have recently taken significant steps to support the development of EV charging infrastructure. For example, in Maharashtra, a government resolution has been issued, which mandates the installation of EV charging facilities every ~25 km on state and national highways, and at least one charger at every fuel station and bus depot across the state. The policy also expanded the range of vehicle categories to be covered under the EV transition. Meanwhile, Uttar Pradesh became the first state to offer subsidies for upstream infrastructure costs in EV charging stations. The state allows eligible fixed capital investment for subsidies to include behind-the-meter and up-to-the-meter infrastructure, with up to Rs 1 million per unit available.
The private sector’s response is also proactive, with collaborations focusing on expanding fast charging networks. For instance, Thunderplus and Tata Motors Limited have recently signed an MoU to deploy 5,000 EV charging stations across India. The partnership seeks to support commercial fleet operators and accelerate EV adoption in the country. Tata Motors will install new PCSs across major cities in Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Delhi, West Bengal, Bihar and Maharashtra. These stations will be strategically located at key logistics hubs and will also be equipped with fast charging capabilities and integrated digital solutions. Earlier in September 2025, TATA Power EV Charging Solutions Limited, a subsidiary of Tata Power Renewable Energy Limited, and VE Commercial Vehicles Limited joined forces to accelerate the adoption of electric commercial vehicles in India. Furthermore, in August 2025, Tata Power Delhi Distribution Limited signed an MoU with M/s Magna Yuma Private Limited for augmenting and setting up EV battery swapping stations across its operational areas.
Company-level initiatives accelerate the transition
The market for e-buses is largely supported by manufacturers such as PMI Electro Mobility, Switch Mobility, Olectra Greentech, JBM Auto and Tata Motors. These companies continuously innovate in battery technology, vehicle design and operational efficiency tailored to diverse Indian requirements.
Industry advances are reflected in recent milestones, such as the launch of the Suzuki e-VITARA, India’s first locally produced global strategic battery EV, at the Hansalpur plant, and the inauguration of a hybrid battery electrode facility by a Suzuki-Toshiba-Denso joint venture. These developments cement India as a major global supplier in the EV and battery value chain and mark a decisive step towards “Make in India, Make for the World”. More recently, Azad India Mobility Limited finalised a lease agreement to establish a manufacturing facility in Bengaluru for e-bus production. The facility spanning 8,094 square metres will be used for building bus body components, assembling both manufactured and imported parts and producing fully functional e-buses, targeting a production capacity of up to 1,500 buses annually. The move is a part of Azad India Mobility’s strategy to deepen its presence in India’s electric mobility transition.
Limited uptake of BRT systems
India has adopted bus rapid transit (BRT) systems as part of its strategy to enhance urban mobility, reduce congestion and support sustainable development. Currently, operational BRT systems are in place in cities such as Ahmedabad, Surat, Rajkot, Pune, Hubballi-Dharwad and Visakhapatnam, among others. Furthermore, Amritsar’s BRT system has been relaunched after a period of suspension. These cities continue to operate dedicated BRT corridors, though performance and extent vary by city.
Implementation issues, such as lack of multimodal connectivity, inconsistent infrastructure quality and limited public outreach have curtailed growth and led to dismantling in certain cities such as Delhi. Despite these setbacks, BRT remains a cost-effective mass transit option for many Indian cities, provided implementation challenges are addressed and integration with metro, rail and city bus systems is strengthened for seamless, citywide mobility.
Future prospects
India’s e-bus and EV charging industry is set for sustained, rapid growth driven by supportive policy, surging urban populations, environmental goals and rising consumer acceptance. Strategic planning for grid upgrades, charging station networks and inclusive mobility will remain a top priority, with a target to reach 50,000 e-buses by 2027 as part of the National Electric Bus Programme.
India has also entered into hydrogen-fuelled public transportation, particularly buses powered by green hydrogen. Notably, NTPC Limited and the Leh administration introduced five hydrogen fuel cell buses in June 2025, in what is described as India’s first commercial hydrogen bus deployment and the world’s highest-altitude hydrogen mobility project. Going forward, green hydrogen buses are poised to become an important component of the country’s urban transport decarbonisation strategy.
Innovations such as battery swapping, grid-responsive smart charging and integrated ticketing payment systems will further shape market evolution. By fostering investment, refining policy frameworks and encouraging innovation, India can build a world-class clean mobility infrastructure that not only reduces carbon emissions but also ensures inclusive access to modern urban transit.
Meanwhile, the future success of BRT systems depends on improved coordination, institutional frameworks, public engagement and integration with other urban transport plans. Continuous investment, local capacity building and policy alignment will be key to expanding sustainable mass transit and supporting India’s long-term energy independence strategy.
India’s integrated approach to BRT, e-bus deployment and EV charging infrastructure demands sustained effort, with strong engagement across governments and industries. Moving ahead, India’s mobility revolution will drive a resilient, green urban futures for generations to come.
