India adding over 5,000 electric buses for 65 cities, preparing for 'Electrifying' future of public transport

India is preparing to witness the 'Electrifying' future of public transport. An inter-ministerial committee of an Indian government has approved more than 5,000 electric buses in 65 cities across the country for eight state transport undertakings. This move is also expected to give a major boost to India's automobile sector. 

Amitabh Kant, CEO of Niti Ayong, made the announcement via Twitter. 

"The inter-ministerial committee for EV Vehicles today sanctioned 5645 electric buses for intracity operations in 65 cities and for intercity operations to 8 state transport undertakings. This will give huge impetus to automobile sector, clean up our cities & drive Make in India," said Amitabh Kant, CEO of NITI Aayog.

Key objectives of India's EV plans and policy

As stated in last year's NITI report, some of the key objectives of India's EV plans are to reduce oil consumption in transportation, facilitate customer adoption of electric and clear energy vehicles and "encourage cutting edge technology in India through adoption, adaptation and research and development."

India is also looking to improve public and goods transportation across the country. However, one of the primary objectives of this policy to reduce pollution in cities and create EV manufacturing capacity "that is of global scale and competitiveness."

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Major boost to India's automobile sector

In terms of the global context, India's EV policy is similar to other countries' EV policy. However, in India, the types of vehicles being used are different from other countries. India has 79 per cent two-wheelers on the road while three-wheeler vehicles account for 4 per cent of total vehicles, according to NITI report.

In India, buses and heavy goods vehicle such as trucks account for 3 per cent of the total number of vehicles. With the latest announcement, India seems to ensure that electric buses become viable in the country.

"...Buses would become economically viable very quickly with the rationalized customs duties."

"While encouraging the sale of private EVs, India’s focus, at least in the first few years, should be on small, public and rural transportation. It is possible for India to have a unique impact and scale early with two-wheelers and three-wheelers, including three-wheeler goods vehicles."

"Special attention is needed to get these vehicles to become economically viable and flourish."