India’s electric bus registrations declined 7.2 per cent month-on-month in May 2026, reflecting persistent infrastructure and financing bottlenecks in the country’s public transport electrification push even as JBM Auto emerged as the strongest performer with a sharp jump in deployments.

According to VAHAN portal data, total electric bus registrations fell to 322 units in May from 347 units in April. However, beneath the modest market decline, competitive positions shifted sharply across manufacturers, highlighting the uneven and deployment-led nature of India’s EV bus market.

JBM TAKES LEAD

JBM Auto recorded the strongest growth during the month, with registrations rising to 157 units in May from 62 units in April, helping the company capture 48.8 per cent market share and emerge as the clear market leader. Commenting on the performance, Nishant Arya, Vice-Chairman and Managing Director, JBM Auto, said the company’s growth reflected its long-term focus on sustainable public mobility.

“Our growth reflects a clear focus on decarbonising public transport, while aligning with global benchmarks in sustainable mobility. At JBM Auto, we are building solutions that combine innovation, efficiency, and user-centric design. Our aim is not only to reduce emissions, but also to enhance everyday mobility by making it smarter, safer, and more accessible,” Arya said.

The sharp increase points to strong execution of fleet deployment orders and highlights how India’s electric bus market is increasingly becoming an execution-led business where deployment capability matters as much as manufacturing scale.

PMI Electro Mobility, which led the market in April, saw registrations decline to 50 units in May from 111 units a month earlier, with its market share falling to 15.5 per cent.

Switch Mobility retained a relatively stable presence with 54 registrations in May compared with 62 units in April, while Olectra Greentech rebounded sharply to 47 registrations from just one unit in the previous month, taking its market share to 14.6%.

The data also showed steep declines for several players. Pinnacle Mobility’s registrations dropped to five units from 52 units in April, while Aeroagle fell to three units from 28 units. Tata Motors remained marginal in the segment with two registrations during the month.

DEPOT BOTTLENECKS EMERGE

Industry executives said the slowdown in electric bus deployments is increasingly being constrained by charging infrastructure and financing hurdles rather than vehicle availability alone.

“One of the biggest bottlenecks is depot infrastructure. Unlike diesel buses that can refuel quickly and return to service, electric buses require long-duration parking at dedicated charging depots, forcing state transport undertakings to redesign existing infrastructure. Many older urban depots lack the land required to accommodate expanded charging bays and overnight parking layouts needed for large electric fleets.” said a top official from a EV Bus OEM

Power connectivity is emerging as another major hurdle. Upgrading depots to high-voltage electricity connections requires substantial upfront investment, with industry estimates suggesting that bringing high-capacity grid connectivity to a depot can cost more than ₹1 crore even before installing charging infrastructure. Deployment timelines are also being delayed by long interconnection approval cycles with state electricity boards.

FINANCING REMAINS A HURDLE

The high upfront cost of electric buses continues to weigh on adoption. Private fleet operators executing gross cost contract (GCC) projects often lack large fixed land assets that banks typically require as collateral, making lenders cautious about extending low-cost financing.

Industry participants said uncertainty around residual values and battery degradation risks is also making financiers conservative toward electric bus assets compared with conventional diesel fleets.

Deployment led market

The latest VAHAN numbers reinforce that India’s electric bus segment continues to remain heavily dependent on government-backed procurement programmes such as PM e-Bus Sewa and state transport tenders. Unlike electric two- and three-wheelers, where retail demand drives growth more steadily, the bus market remains shaped by depot readiness, financing availability, power infrastructure, and timing of fleet deployments.

Published on June 4, 2026