The Indian interim budget demonstrates a strong commitment to electric vehicles (EVs) and urban public transportation. Key highlights include a Rs 1,300 crore allocation for purchasing electric buses through the PM-eBus Sewa scheme, which aims to deploy 10,000 electric buses in 169 cities.
The budget also prioritizes charging infrastructure and EV manufacturing support, with a significant increase in funding for semiconductor manufacturing. While the budget does not include a reduction in import duties and GST on EV components, it is consistent with the government’s push for a sustainable and efficient EV ecosystem.
In addition, the budget allocates Rs 2,671 crore to the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. The overall emphasis on green mobility, including the construction of electric vehicle-ready highways, represents a positive step toward an EV revolution in India.
Here are some EV bus manufacturers that might benefit.
Tata Motors Ltd
Tata Motors Group is a world-class automobile manufacturer. As a subsidiary of the illustrious Tata group, it provides the world with a diverse portfolio of automobiles, sport utility vehicles, trucks, buses, and defense vehicles.
Recently, Tata Motors delivered electric buses to Jammu Smart City for green urban transportation. The delivery of electric buses is part of a larger order to supply, maintain, and operate 100 electric buses in Srinagar and 100 in Jammu over a 12-year period for the Smart City projects in Jammu and Srinagar.
Tata Motors increased its capital investment by 30%, or Rs 9000 crore, during FY23. The firm would make its largest-ever domestic investment of Rs 6000 crore in the current fiscal year to fund the growth of its portfolio of capacity across all of its businesses – commercial vehicles, passenger cars, and electric vehicles.
Additionally in the December quarter, the company’s net profit rose by 134% from Rs 3,043 crore to Rs 7,145 crore and its net revenue rose by 25%from Rs 88,488 crore to Rs 1,10,577 crore.
On Friday, the share price of the company closed 0.49% higher to Rs 882.80 per share from the previous close of Rs 878.50.
JBM Auto Ltd
JBM Auto Ltd, founded in 1983, is an automotive company that manufactures and sells sheet metal components, tools, dies and molds, and buses, as well as selling spare parts, accessories, and bus maintenance contracts.
JBM Auto and its subsidiaries have received orders for nearly 5000 electric buses from state transport undertakings (STUs) in Gujarat, Haryana, Delhi, Telangana, and Orissa, among others.
On Friday, the share price of the company closed 0.61% down to Rs 1,956 per share from the previous close of Rs 1,968.
Olectra Greentech Ltd
Olectra Greentech Ltd. was established in 1992. The company’s primary business is the manufacture of composite polymer insulators and electrical buses. It has a registered office in Hyderabad.
With 8,209 orders on hand, the company proposes to establish a greenfield electric vehicle manufacturing plant with a capacity of 5,000 electric vehicles per year and the potential to scale up to 10,000 electric vehicles per year. The company’s total outlay is Rs 35 billion.
In December, the company received orders from Vasai Virar City Municipal Corporation, Mumbai for the supply and maintenance of 40 Electric Buses.
On Friday, the share price of the company closed 3.2% up to Rs 1,783.20 per share from the previous close of Rs 1,727.
Written by Sriram KV
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