PMPML’s Journey Through Time: How Pune and Pimpri Chinchwad Got Better Public Transport

21st April 2025 by admin

Every single day, nearly 11 lakh citizens rely on Pune Mahanagar Parivahan Mahamandal Limited (PMPML) buses to move across Pune and Pimpri Chinchwad. For a service that’s just under 20 years old, this is no small feat. Despite fierce competition from private vehicles, the occasional pushback against dedicated bus lanes, PMPML has managed to carve out its space as a reliable, sustainable transport option.

Picture this: today, a Pune resident can board a PMPML bus, ride an electric bus on a dedicated BRTS lane, and pay a fraction of what other modes would cost. Few Indian cities can claim such progress. But this hasn’t happened overnight—over the last two decades, a series of strategic moves have strengthened PMPML’s presence, shaping Pune’s public transport network into what it is today.

However, the very gains that took years to build now face the risk of being undone. The city’s rapid growth demands more buses, better services, and continued investment—without which, PMPML’s ability to serve Pune’s people will weaken.

So, what were the key milestones in PMPML’s journey? Let’s dive in.

Here’s a look at this journey:

2007: PMPML Formed with BRTS

PMPML was formed in 2007 through the amalgamation of Pune Municipal Transport (PMT) and Pimpri Chinchwad Municipal Transport (PCMT), which previously operated as separate public transportation entities for Pune and Pimpri-Chinchwad, respectively. Pune and Pimpri-Chinchwad are sister cities with growing urban populations and expanding boundaries. This geographical proximity led to a significant overlap in bus routes and services offered by PMT and PCMT, often causing operational inefficiencies and commuter inconvenience. To address these challenges, PMPML was established as a unified public transport body to serve both cities as well as nearby towns and villages.

The formation of PMPML was further strengthened with streamlining the BRTS operations. Implementation of the Pune BRTS began in 2006, with Pune being the first city in the nation to adopt BRTS. The project was implemented on pilot stretches from Katraj to Swargate and Swargate to Hadapsar. The project was partially funded under JnNURM, which also led to development of footpaths and cycle tracks as part of the mandates for the funding. ITDP supported Pune Municipal Corporation (PMC) and Pimpri Chinchwad Municipal Corporation (PCMC) with the design of the BRTS corridors, as well as by creating awareness about the advantages of BRTS.

2015: Rainbow BRTS expands to more routes

After the success of BRTS in initial pilot routes, additional corridors were inaugurated in 2015. These were the Yerwada-Wagholi and Sangamwadi-Vishrantwadi in Pune, and Sanvi Phata-Kiwale and Nashik Phata-Wakad for Pimpri Chinchwad inaugurated in 2015.

ITDP was involved as a technical partner, guiding PMC and PCMC with refinements in the overall system, leading to consolidation of these corridors under the ‘Rainbow BRTS’ brand. This strategic branding created a unified identity for BRT services across the metropolitan region.

Rainbow BRTS since has been ahead of the curve as it introduced advanced features, including dedicated BRTS stations with automatic gates, GPS-enabled bus tracking (AVLS), level boarding, passenger information systems, off-board ticketing, and speed tables for pedestrian crossings. PMPML also established a state-of-the-art Transport Command and Control Centre to monitor performance and service levels. Today, the Rainbow BRTS network spans slightly over 60 kms. Its hybrid operational model enabled buses to bypass traffic congestion along dedicated trunk routes while maintaining route flexibility across non-BRTS corridors.

*Aerial view of the Phule Nagar Station and Rainbow Bus on the Sangamwadi-Vishrantwadi Corridor (Source:* Rainbow Bus, PMPML)

2018

Pioneer in Electric Buses

The next big milestone for PMPML was scripted in the year 2018 when PMPML further enhanced its service with the introduction of electric buses, setting a benchmark for sustainable urban mobility in India.
They were able to do this with financial support from the Pune Smart City Development Corporation who enabled the procurement of 150 e-buses, making Pune the city with one of highest number of e-buses in India back in 2018. This achievement was particularly noteworthy, as PMPML was not among the various transport undertakings selected under the FAME-I scheme. However, the experience gained paved the way for PMPML to secure financial support for 450 additional electric buses under the FAME-II scheme in 2019. ITDP has been actively assisting PMPML by providing technical support as required for the procurement of electric buses.

As it is well established now, e-buses are significantly more energy-efficient than Internal Combustion Engine (ICE) buses, with a 12-meter e-bus consuming just 1.3 kWh per km, compared to 2.82 kWh/km for diesel buses and 2.89 kWh/km for CNG buses. This makes electric buses nearly twice as fuel-efficient as their diesel and CNG counterparts.

In addition to efficiency, e-buses have matched the performance of CNG buses while recording fewer canceled kilometers. A passenger survey revealed that 75% preferred commuting on e-buses due to their superior ride quality, air conditioning, and reduced noise levels. Owing to these factors, PMPML is the only State Transport Undertaking (STU) offering air-conditioned services at standard fares. Since the operating cost of AC e-buses is lower than that of AC CNG buses, PMPML has been able to pass these cost savings on to its passengers. PMPML charges a fare of Rs 5 per km for both non-AC and AC buses. In comparison BEST which provides city buses services in Mumbai has a 20% higher fare for AC buses. (Rs 5 per km for non-AC Buses and Rs 6 per km for AC Buses. The daily passes also vary in fares, with Rs 50 and Rs 60 for non-AC and AC Buses, respectively.

*Comparison of Energy Consumption between Electric, CNG, and Diesel Buses*

One of the First STU to embrace Gross Cost Contract as way forward

Speeding up the electrification of fleet was adoption of Gross Cost Contract model by PMPML. The STU did so as a key component of its electric bus procurement strategy. Under this model, PMPML pays operators on a per-kilometer basis, while the operators provide buses, drivers, charging infrastructure, and maintenance. This arrangement shifts financial and operational risks away from PMPML, facilitating the rapid adoption of electric buses without significant capital expenditure. Pune’s pioneering implementation of the GCC model accelerated its transition to electric mobility and served as a reference for other Indian cities. Furthermore, PMPML continues refining its GCC framework, integrating lessons from past experiences.

2022: Integration with Metro

PMPML hosted a Foundation Week from 18^th to 23^rd April 2022, celebrating 15 years of its service. In the months following the Foundation Week, both Pune and Pimpri Chinchwad saw the introduction of Metro services. PMPML has since been actively collaborating with Maha Metro to integrate their services and enhance accessibility for citizens. BRTS stops along the Metro corridor were relocated near Metro stations, aligning with the exit points to facilitate seamless transfers for passengers between the two services. Additionally, PMPML introduced feeder routes to Metro stations to expand the Metro catchment area, further improving access. Information panels were installed at Metro stations to help passengers easily identify and use the feeder services. In fact it continues to support the citizens of Pune region as an analysis by ITDP India on how the Nigdi-Dapodi BRTS corridor and Pune Metro services, compliment each other’s service found that, despite presence of Metro, the Nigdi-Dapodi BRTS corridor serves 1.5 lakh passengers daily, with 37 buses per hour during peak times, one bus every 1.6 minutes. About 47% of users were students (18-25 years).

*Vallabh Nagar BRT Station relocated closer to the Sant Tukaram Nagar Metro Station exit for easier access to passengers.*

2024: All-in-One Transit App for Commuting and Seamless Ticketing Across any Public Transport mode

PMPML has consistently demonstrated a proactive approach to improving its services by collaborating with various agencies and stakeholders. One such collaboration which reaped productive results was through the Transport4All (T4A) challenge. As part of this, PMPML supported startups in developing innovative solutions for modern day challenges which state transport undertakings face. Pune nurtured and piloted three successful solutions, one of which led to the creation of the Apli PMPML app. Building on the multi-modal integration, this app offers digital services to PMPML users, including live tracking, ticket booking, route planning, and more. It also integrates with Maha Metro’s online booking portal, advancing the digital integration of Pune’s public transport system. The Apli PMPML App marks a significant achievement for PMPML considering the popularity and positive reviews of the app, hinting its successful implementation. The same is backed by the staggering 10 Lakh+ downloads of the app in a span of only 6-7 months.

*The Apli PMPML app includes live tracking, ticket booking, bus schedules, and more features*

Way forward

Pune and Pimpri Chinchwad have consistently proven themselves as leaders in public and sustainable transportation, setting a benchmark for cities across India. But as these cities grow, so too must their public transport systems. Maintaining ridership alone is no longer sufficient—the goal must be to significantly grow ridership. This calls for scaling up the fleet, upgrading service quality, and ensuring that capacity matches the region’s growing demand.

To truly meet the mobility needs of the future, operational efficiency must improve, and the passenger experience must be reimagined—with greater comfort, convenience, and safety at its core. Public transport must evolve from being merely a mode of mobility to becoming a seamless, enjoyable part of daily life for all residents.

As of 2025, in an industry-first, PMPML is set to incorporate qualitative benchmarks into its tendering process—prioritising service quality, operational efficiency, and commuter satisfaction. This strategic shift aims to elevate the passenger experience and reflects PMPML’s growing commitment to excellence. ITDP’s collaborative support has contributed to this evolution, providing technical insights and guidance throughout the journey.

Having supported PMPML since its early stages, ITDP remains a committed partner in this transformation—working together to deliver innovations and strategies that will help Pune Metropolitan Region emerge as one of the world’s most efficient, accessible, and environmentally responsible public transport systems.
As PMPML enters its third decade, can it keep up with Pune’s and Pimpri Chinchwad’s growing demands—and bring more people back to public transport? Stay tuned for the next part.

Written by Jagdish Temkar, Associate, Transport Systems, ITDP India
With Technical Inputs from Aditya Rane, Senior Associate – Transport Systems and Electric Mobility, ITDP India
Edited by Donita Jose, Senior Associate, Communication and Development, ITDP India

ZEV Mandates: The Missing Supply-Side Policy Push for India’s EV Revolution

9th April 2025 by admin Leave a Comment

Read time- 10 minutes

As cleaning up India’s air becomes more crucial than ever, is the lack of strong policies to electrify buses a critical piece missing in the puzzle? Being the world’s second-largest automotive market in both vehicle production and consumption (OICA, 2024), India’s transition to electric mobility is pivotal for achieving its climate targets. Most critically, buses will play a crucial role in reducing carbon emissions by 1 billion tonnes by 2030 and reaching net zero by 2070.

But why are buses so critical to India’s story of reducing footprint? Road transport contributes over 10% of India’s total CO₂ emissions, with heavy-duty vehicles (HDVs) like buses and trucks accounting for nearly 40% of transport emissions despite representing only 2% of the vehicle fleet (ICCT, 2021). This disproportionate footprint highlights the urgent need to prioritise the decarbonisation of buses and trucks. Despite this, the current pace of electrification remains slow.

In FY2024-25, only 3% of total bus sales in India were electric, with just 3,400 e-buses sold compared to over 1 lakh Internal Combustion Engine (ICE) buses. This is starkly insufficient against India’s commitment under the EV30@30 campaign, which targets 40% of all new bus sales to be electric by 2030. This is barely five years from now.

Projections by ITDP India under the business-as-usual scenario estimated that India will only achieve 11% e-bus sales by 2030, far below the target of 40% under the EV30@30 initiative for buses. At this rate, only around 10,000 e-buses would be produced annually by 2030, whereas achieving the 40% target necessitates scaling production to 40,000 units per year—a four fold increase. Compounding this challenge is the limited manufacturing capacity of Indian e-Bus Original Equipment Manufacturers (OEMs), which collectively produce just 3,000 units per year as of 2025. Bridging this gap requires a paradigm shift—one that moves beyond demand-side incentives to a comprehensive policy framework anchored in Zero Emission Vehicle (ZEV) mandates.

What are ZEV Mandates?

A Zero Emission Vehicle (ZEV) mandate is a regulatory policy that requires automakers to sell a certain percentage of zero-emission vehicles — such as battery electric vehicles (BEVs), hydrogen fuel cell vehicles (FCEVs), or plug-in hybrid electric vehicles (PHEVs) — each year relative to their total sales.

In many regions, ZEV mandates are also extended to fleet operators, requiring them to procure a defined percentage of zero-emission vehicles within their fleet procurement cycles.

Manufacturers that fail to meet these quotas must purchase credits from compliant companies or face penalties. ZEV mandates are designed to accelerate the transition away from internal combustion engine (ICE) vehicles and help countries meet their climate and clean air goals.

How ZEV Mandates Helped EU and China

India’s EV penetration rate currently stands at 12.9%, driven largely by three-wheelers leading at 53.3% of sales, the adoption of larger vehicles such as buses and heavy-duty trucks has been considerably slower.

Currently, electric buses account for only 3% of total new bus sales in India, despite the country being the world’s second-largest bus market with annual sales averaging over 1 lakh units. In comparison, China introduced its New Energy Vehicle (NEV) mandate in 2017. Within just six years of cumulative efforts, the mandate has led China to achieve a stock of over 6,70,000 e-buses on its roads as of 2024. The share of electric buses in new sales in China became over 20% by 2023 (Source: IEA Global EV Outlook 2023). Meanwhile, the European Union (EU) has also progressed steadily, with 8% of electric buses in new sales in 2023, amounting to around 12,000 e-buses. In contrast, India lags significantly behind these global leaders, with only 10,500 e-buses on the road as of 2025, despite ambitious national targets. This highlights the urgent need for India to shift from a demand-side incentive approach to a supply-side mandate framework like the ZEV and Zero-Emission Buses (ZEB) mandates adopted internationally.

Globally, ZEV mandates have proven effective in accelerating EV adoption in:

China: The New Energy Vehicle (NEV) mandate introduced in 2017 resulted in a 90% compound annual growth rate (CAGR) for EV sales, making China the largest EV market with over 670,000 electric buses.
EU: The EU’s fleet CO₂ regulations have spurred a significant shift toward zero-emission buses, with 36% of new city bus sales being electric in 2023.
California: The state’s ZEV mandate has led to 7.8% of new vehicle sales being zero-emission, supported by credit trading mechanisms to ensure compliance.

Why E-Bus Adoption is Slow in India Despite Several Incentives

Despite numerous government incentives and policies, several structural and operational challenges impede the widespread deployment of e-buses in the country.

Over the past eight years, India’s push toward electric mobility has relied heavily on demand-side incentives through schemes like FAME I, FAME II, the PM E-Bus Sewa, and the proposed PM E-Drive scheme. These initiatives have successfully spurred EV adoption in two- and three-wheelers. However, in the critical heavy-duty segment — specifically buses — the progress is fragmented, tender-driven, and lacks long-term certainty.

Below are the key factors hindering the growth of the e-bus sector:

State Road Transport Undertaking (STU) Centric Policies and Incentives: The existing policy framework for e-buses heavily prioritises STUs, which account for only 8% of the total bus fleet in India. Meanwhile, the private sector, operating a staggering 92% of the buses, remains largely neglected.
The Private Sector Missed the Electrification Bus: The private sector faces multiple challenges that hinder its participation in the e-bus transition. High upfront cost of e-buses, combined with inadequate financial incentives, makes e-buses prohibitively expensive for private operators who are managing nearly 21.50 lakh buses in India. (Vahan Dashboard, MoRTH Road Transport Book). Furthermore, the lack of robust charging infrastructure exacerbates operational inefficiencies and range anxiety, i.e how far the vehicle will go in a single charge. Despite accounting for 86% of total bus purchases annually, private operators are largely excluded from policies and incentives, leaving them reluctant to make large-scale investments in e-bus adoption.
Delay in E-Bus Delivery: OEMs struggle to scale e-bus production due to fragmented and uncertain demand from STUs, which dominate the e-bus market with large but ad hoc orders. In the ICE bus market, OEMs have a sustained demand from private bus operators, which has enabled them to scale their production. For example, 95,000 new diesel and CNG buses were added to the roads last year alone. Due to this, unlike the ICE bus market, where large orders of 1,000 buses are typically delivered within six months and annual production reaches 10,000–15,000 units per manufacturer, e-bus orders of the same scale often take over a year or even two years to fulfill, with production capacities limited to just 500–600 units annually. This monopsony market, where there is only one buyer for a product or service, but many sellers, is heavily reliant on government procurement, restricts Original Equipment Manufacturers (OEMs) from diversifying their customer base or achieving economies of scale, thereby contributing to delivery delays.
Overburden of responsibilities on OEMs: Most e-buses in India procured by STUs are being brought in under the Gross Cost Contract (GCC) model. In this model, OEMs not only manufacture but also act as operators for e-buses, as traditional private bus operators lack the capacity to procure and supply e-buses on GCC to STUs due to financial constraints. While this model has been instrumental in the past, launching the e-bus market for STUs, it is not sustainable in the long term for OEMs. The dual role burdens OEMs with operational responsibilities that require significant upfront capital, and operational expertise, including staff management, which many manufacturers lack. As a result, scaling production? Sales? Operations? under the GCC model remains a significant challenge for OEMs.
Targets Without Mandates: Although national and state-level policies have established electrification targets for STUs, these targets are not supported by robust mandates or a clear roadmap for implementation. The lack of enforcement mechanisms leads to inconsistent adoption and undermines the efficacy of these policies. Without mandatory guidelines for both public and private operators, the transition to e-buses remains fragmented and slow.

ZEV Mandates: The Missing Supply-Side Policy Push for India’s EV Revolution

Need for Supply-Side Mandates in India

To meet its EV30@30 and net-zero targets, India must explore alternative measures beyond demand-side incentives to boost manufacturing. While initiatives like FAME-I, FAME-II, State schemes, and PM E-Bus Sewa have spurred initial growth, they are insufficient alone. Without a shift toward supply-side mandates, such as Zero Emission Vehicle (ZEV) mandates, the country risks falling short of its goals.  These mandates would compel manufacturers to scale up production significantly, addressing the current gap in manufacturing capacity and ensuring a steady supply of electric buses to meet the ambitious targets. They can ensure that clean mobility is no longer voluntary or incentive-dependent, but a legal and scalable requirement.
According to the Economics of Energy Innovation and System Transition (EEIST) assessment, which evaluated the effectiveness of various policy instruments across four regions worldwide, mandates consistently emerged as the most effective tool for driving the transition to electric vehicles (EVs). According to the report:

Mandates ensure a shift to zero-emission technology, leaving nothing to chance. They compel manufacturers to produce a certain percentage of zero-emission vehicles, thereby guaranteeing a steady supply of EVs in the market.

This approach is crucial for India, where the current manufacturing capacity of electric buses is significantly below the required levels to meet the EV30@30 targets. Sales must increase by atleast four times.
Subsidies and taxes, when used without the support of regulations or mandates, are relatively ineffective due to limited consumer awareness and access.

While financial incentives like FAME-I, FAME-II, State schemes, and PM E-Bus Sewa have spurred initial growth, they are insufficient alone to meet India’s ambitious electrification goals. These incentives often fail to create a sustained market demand for EVs, as they do not address the supply-side constraints.
Regulations are generally more cost-effective than financial incentives for driving the transition to electric vehicles. By setting clear targets and compliance requirements, mandates provide a predictable and stable policy environment that encourages investment in EV manufacturing and infrastructure. This regulatory certainty is essential for scaling up production and achieving the necessary economies of scale.

Supply-side mandates, such as Zero Emission Vehicle (ZEV) mandates, will be crucial in bridging the gap in manufacturing capacity and ensuring a steady supply of electric buses. These mandates will compel manufacturers to significantly scale up production, addressing the current shortfall and ensuring that India remains on track to meet its electrification goals.

Key Takeaways:

Subsidies and tax benefits provide only limited progress, as seen in the US, Europe, and India where EV deployment remains low without regulatory backing.

Regulations and supply-side policies drive higher adoption, particularly in China and Europe, where emission limits and industry obligations accelerate electrification.

ZEV mandates are the single most effective policy tool, ensuring that EV adoption continues consistently and at scale across all major regions.

India lags significantly in EV adoption under its current policy structure, reinforcing the need for legally binding mandates to drive large-scale transformation.

Driving Toward a Sustainable Future

India’s journey toward zero-emission transportation represents not just an environmental imperative but a transformative opportunity for the nation’s mobility sector. By adopting comprehensive Zero Emission Vehicle (ZEV) mandates, the country can overcome long-standing challenges such as limited private sector participation, insufficient manufacturing capacity, and fragmented policy frameworks. Learning from global leaders like China, the EU, and California, India has the potential to scale up electric vehicle adoption across high-impact segments like buses and trucks.

Supply-side ZEV mandates, combined with prioritising local manufacturing, targeting commercial fleets, and fostering market-driven compliance, will enable India to achieve its ambitious EV30@30 and net-zero targets. With the right policies and collaborative efforts, India can lead the way in creating a cleaner, greener, and more equitable future for mobility.

Written by Aditya Rane S- Senior Associate, Transport Systems and Electric Mobility
With inputs from Vaishali Singh, Programme Manager, Transport Systems and Electric Mobility
Edited by Donita Jose, Senior Associate, Communications

Five e-Mobility Trends to Watch Out for in 2025!

10th February 2025 by admin

The future of mobility is electric – will 2025 be the year that accelerates the transition in India? The Indian electric vehicle (EV) market is roughly valued at INR 20 lakh crore, as per the Union Minister Nitin Gadkari, with close to 55 lakh EVs on our roads today. The Minister also announced that by 2030 India’s electric vehicle market could grow to INR 20 trillion, with annual sales reaching 1 crore units, and create five crore jobs! In the next five years we can expect India to become the third largest automobile industry given the increasing demand for electric vehicles. This growth in EVs is driven by rising fuel costs, supportive regulations to meet climate targets, and incentives that are boosting manufacturing and affordability at both national and state levels.

The next five years are crucial for India to meet its EV penetration target of 30% of the market share by 2030. Building on the progress of 2024, 2025 has great potential if the momentum continues. If the India Union Budget 2025-2026 is any indication, the future looks bright for EV. The PM E-Bus Sewa Scheme saw a 160% increase in funding, offering bus subsidies and incentives for Original Equipment Manufacturers (OEMs) to boost manufacturing, particularly in tier-2 and tier-3 cities. This growth is likely to create new manufacturing and job opportunities, fueling the industry’s expansion. Schemes supporting the development of charging infrastructure are also progressing steadily. However, maintaining year-on-year momentum is essential, which will require ongoing government support through robust policies, regulations, and better incentives.

From the rising demand for electric vehicles to a greener public transport, let’s reflect on 2024’s key achievements and explore how 2025 is set to build on these efforts with five electrifying trends you won’t want to miss:

1. Expansion of e-Bus Fleet with Maharashtra Leading the Way

With 9,700 public electric buses (e-bus) on the road as of December 2024, India has witnessed a mixed bag of achievements and challenges in the e-bus sector. While the funding for FAME II stopped, the national PM E-Bus Sewa Scheme gained momentum. The Scheme was launched by the Ministry of Housing and Urban Affairs (MoHUA) in 2023, aiming to deploy 10,000 e-buses across tier-2 and tier-3 cities through a Public-Private Partnership (PPP) model. Of the INR 983 crore sanctioned for 14 states, nearly half—INR 437 crore—was allocated to eight states in 2024, with Maharashtra receiving the largest share of INR 200 crore. 20 cities across Maharashtra will reap its benefits.

Under the same initiative, in September 2024, the PM E-Bus Sewa Payment Security Mechanism (PSM) was approved, with a total outlay of INR 3,435.33 crore. This initiative was designed to support Public Transport Authorities (PTAs) in procuring and operating over 38,000 e-buses between FY 2024-25 and FY 2028-29. The scheme protects bus operators and manufacturers by guaranteeing they will still get paid even if PTAs fail to make their payments on time.

With the scheme approved for 14 states and payment security mechanisms in place, Maharashtra could become a frontrunner in e-bus adoption. In addition, the Maharashtra State Road Transport Corporation (MSRTC) is set to add 5,500 e-buses to its fleet, enhancing connectivity while reducing emissions. In Mumbai, the Brihanmumbai Electric Supply and Transport (BEST) aims to achieve a 100% electric fleet by 2030, demonstrating a strong commitment to clean mobility. Additionally, under the PM E-Drive initiative, Mumbai and Pune are slated to receive over 2,000 e-buses, further strengthening their public transport systems.

While Maharashtra’s efforts to procure e-buses through various central schemes are crucial and should be strategically scaled, a 2024 study by ITDP highlighted that the state severely lacks urban buses. This presents a significant opportunity for Maharashtra to bridge the gap by prioritising sustainable e-buses.

In 2025, the state could see a substantial increase in e-bus procurement, enhancing public transport, reducing pollution, and setting a precedent for other states in India’s e-mobility journey.

2. Gradual Transition of the Private Sector to e-Buses

The transition to electric private sector buses has been slow, but it’s essential. While public buses often get the spotlight, private operators own 93% of India’s 20 lakh buses. By 2030, demand for stage-carriage non-urban buses is projected at 7 lakh and urban buses at 3 lakh. To meet this, both public and private fleets need to grow, and private buses can help bridge the gap.

In 2024, ITDP India worked with cities in Tamil Nadu and private operators to explore the market for electric buses. The preliminary consultants showed that 60% of operators are open to leasing e-buses, provided low-cost financing, charging infrastructure, and policy reforms are in place. If these leasing reforms are implemented, Tamil Nadu could replace 1,500 old diesel buses with e-buses over three years, advancing its sustainable transport goals.

Some progress was made at PRAWAAS 4.0 in 2024. The International Finance Corporation (IFC) showed interest in financing the private sector’s shift to e-mobility, while Sundaram Finance was keen on supporting the leasing model. Additionally, BasiGo, a well-established leasing company in Kenya, expressed interest in leasing e-buses in India, provided there are policy reforms in place.

A private sector demand aggregation workshop in Erode

In 2025, if Tamil Nadu private operators, with the support of the state, successfully implement the leasing model, it could set a precedent for other states to drive private-sector electrification.

3. Surge in EV Production and Tamil Nadu’s Emergence as the Hub

India is going all in on EV manufacturing! Backed by the 2021 Production Linked Incentive (PLI) scheme for the automobile sector (PLI) with a budget of ₹25,938 crore (in 2023), 257 facilities have been approved across 17 states. Maharashtra leads with 77 facilities, followed by Tamil Nadu’s 46, with states like Haryana, Karnataka, and Gujarat also stepping up—showcasing India’s nationwide push for EV production.

Though PLI funds are yet to be disbursed (as of Nov 2024), Tamil Nadu is already a magnet for EV manufacturers, producing 40% of India’s EVs, including two-wheelers, three-wheelers, and cars. In September 2024, Tata Motors launched its Ranipet plant, set to create 5,000 jobs, upskill the local community, and run operations entirely on renewable energy. Vietnamese EV manufacturer VinFast has also announced plans for a USD 2 billion plant in the state. Meanwhile, passenger vehicle manufacturers such as Hyundai (with an investment of INR 20,000 crore) and Stellantis (with INR 2,000 crore) are already laying the groundwork for their expansion in Tamil Nadu.

In 2025, watch out for Tamil Nadu’s rise as India’s leading EV hub, with six cities—Coimbatore, Trichy, Tirunelveli, Madurai, Salem, and Chennai—set to become key centers for EV development. Backed by a skilled workforce, a strong network of suppliers, and a thriving auto manufacturing ecosystem, the state is well-positioned to lead the charge in India’s EV revolution.

4. Expanding Charging Infrastructure to Keep Pace with the Demand

The increasing demand and supply of EVs also necessitates a parallel expansion of charging infrastructure across the country. To maintain an optimal ratio of one charger for every 40 electric vehicles, India will have to install over 4,00,000 charging stations annually, aiming for a cumulative total of 13.2 lakh by 2030, as per the Confederation of Indian Industry (CII).

At the national level, the PM E-Drive initiative also places a strong emphasis on expanding charging infrastructure. With plans to install over 72,300 chargers nationwide, the scheme aims to ensure seamless accessibility for all EV users in urban and rural areas alike. It also focuses on creating a network of chargers in strategic locations, including highways, cities, and transport hubs, facilitating long-distance travel and encouraging EV adoption.

Adding to this momentum, the Ministry of Power’s comprehensive guidelines for battery swapping and charging stations (issued in January 2025) are paving the way for innovative models like “Battery as a Service” (BaaS). By enabling quicker battery replacement options and promoting safety and efficiency standards, these guidelines aim to streamline operations and attract investments in the EV ecosystem.

At the state level, incentives are crucial for developing charging infrastructure. Each state’s Electric Vehicle (EV) policy offers incentives for charging infrastructure, which may include capital subsidies, building regulations, tariff concessions, renewable energy sources, and consumer interface of the EV network. As a result, India currently has 25,202 EV public charging stations, with Karnataka, Maharashtra, and Uttar Pradesh leading the way. Notably, the charging network is expanding rapidly into Tier 2 and 3 cities, seeing a 96% growth in FY24. Interestingly, 59% of the fast-charging points are now located in these cities, with over half positioned near national highways, improving connectivity and enabling long-distance travel. ITDP has been actively supporting states like Tamil Nadu in their efforts to developing roadmaps to implement robust charging infrastructure across the state.

In 2025, India will expand its EV charging infrastructure through government initiatives like PM E-Drive and state-level incentives, encouraging both demand and supply growth. These efforts, along with private sector involvement, are making EV adoption more accessible and advancing sustainable transport across the country.

5. Scaling Up E-Bus Production through Zero- Emission Vehicle (ZEV) Mandates

In 2024, ITDP conducted consultations with OEMs to address the need for scaling up e-bus production in India. A key finding revealed that most manufacturers can currently produce only up to 500 e-buses (per OEM) annually, compared to 15,000–20,000 Internal Combustion Engine (ICE) buses. With the current demand-side incentives and a 32% CAGR for e-bus sales (2021–2023), India is projected to achieve only 15% e-bus sales by 2030, as compared to the target of 40% by 2030. To meet the 2030 e-bus sales target, annual e-bus production and sales need to increase three times, requiring an average of 25,000 e-buses to be produced and sold each year. This highlights significant gaps in the supply chain and the need for regulatory changes to boost production capacity.

India needs a ZEV mandate with a framework that should also include sales targets, incentives, penalties, and monitoring mechanisms for manufacturers. As India moves beyond subsidies, ZEV mandates are crucial for scaling up electrification. They can drive production, ensure accountability, and create a robust pathway to meet the country’s electrification goals. In 2025, adopting ZEV mandates could set the stage for transformative growth in the electric vehicle ecosystem.

As India continues its electrification journey in 2025, the road ahead looks promising, with charging infrastructure, e-bus fleets, and private sector adoption all gearing up for a greener future. Key developments include Maharashtra’s push for e-buses, the nationwide expansion of charging stations, and Tamil Nadu emerging as a hub for EV production. With strong policy support, private sector involvement, and innovations like battery swapping and Zero Emission Vehicle (ZEV) mandates, 2025 is poised to accelerate India’s shift to sustainable electric mobility. Get ready—India’s EV revolution is accelerating fast!

Written by Kashmira Dubash, Senior Programme Manager