The Ministry of Heavy Industries is set to launch a tender for the procurement of 10,000 electric buses as part of its efforts to accelerate the adoption of electric vehicles (EVs) and reduce carbon emissions from public transport.
This initiative, expected to be a significant step in the country’s green mobility transition, has already sparked optimism in the market. These stocks have been gaining momentum as investors anticipate that the tender will open up major opportunities for these companies in the rapidly growing electric bus segment.
Nifty Auto Index
In Wednesday’s session, the Nifty Auto Index declined by almost 0.83 percent and is currently trading at Rs. 21,072, compared to the previous close of Rs. 21,246.20. The index has almost gained upto 10 percent in the last five sessions.
About the Tender
The tenders for the procurement of electric buses are expected to be issued next month under the PM E-Drive initiative. Convergence Energy Services Ltd (CESL) will oversee the release of tenders to select intra-city electric bus operators for nine cities.
According to CNBC-TV18, the central government is offering a subsidy of around Rs. 3,000 crore for the purchase of these buses. The nine cities involved include Bengaluru, Chennai, Hyderabad, Pune, Mumbai, Surat, Ahmedabad, New Delhi, and Kolkata.
As per the report, the Ministry of Heavy Industries has set a maximum subsidy of Rs. 35 lakh per electric bus, with most states requesting 12-meter buses for urban operations. The PM E-Drive scheme, launched in September 2024, has a budget allocation of Rs. 10,900 crore, which will remain valid until March 2026.
The List of Stocks to Benefit from the Tender
JBM Auto Limited
JBM Auto is a leading Indian manufacturer of electric buses, part of the JBM Group. The company has been actively involved in the electric vehicle (EV) segment, producing zero-emission buses for public transportation. JBM Auto is positioning itself as a key player in India’s growing electric bus market, with a focus on sustainable mobility solutions.
With a market capitalization of Rs. 16,366.59 crores on Wednesday, the shares of JBM Auto Limited jumped upto 12.6 percent, making a high of Rs. 705.00 per share compared to its previous closing price of Rs. 625.95 per share.
Olectra Greentech Limited
Olectra Greentech is a prominent Indian manufacturer of electric buses and bus-charging infrastructure. The company, a part of the MEIL Group, has been at the forefront of electric bus manufacturing in India, providing environmentally friendly transportation solutions for cities across the country.
With a market capitalization of Rs. 10,235.47 crores on Wednesday, the shares of Olectra Greentech Limited jumped upto 8.1 percent, making a high of Rs. 1274.60 per share compared to its previous closing price of Rs. 1178.80 per share.
Tata Motors Limited
Tata Motors, a part of the Tata Group, is one of India’s largest automakers and a significant player in the electric vehicle market. The company manufactures electric buses and has supplied them to various cities under government schemes such as FAME. Tata Motors is actively working on expanding its EV portfolio, including electric buses, as part of its vision to promote green mobility.
With a market capitalization of Rs. 2,26,899.93 crores on Wednesday, the shares of Tata Motors Limited jumped upto 0.9 percent, making a high of Rs. 627.70 per share compared to its previous closing price of Rs. 621.80 per share.
Ashok Leyland Limited
Ashok Leyland, a leading commercial vehicle manufacturer in India, has entered the electric bus market with a range of eco-friendly, zero-emission buses. The company has partnered with various government bodies to deploy electric buses in Indian cities, aligning with the push toward sustainable public transportation and India’s commitment to reducing emissions.
With a market capitalization of Rs. 63,150.02 crores on Wednesday, the shares of Ashok Leyland Limited jumped upto 0.02 percent, making a high of Rs. 215.20 per share compared to its previous closing price of Rs. 215.00 per share.
Written by Sridhar J
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