The electric bus market in India is on a robust growth trajectory, with annual volumes projected to exceed 6,000 units this year, up from around 4,000 units in 2022. Mahesh Babu, CEO of Switch Mobility, the electric vehicle arm of Hinduja Group’s Ashok Leyland, highlighted this growth momentum and outlined the company’s ambitious plans at the Bharat Mobility Expo.
“The market has been consistently growing over the past three years. Tender processes have matured significantly, evolving from aggressive, unsustainable pricing to more balanced rates that support both State Transport Undertakings (STUs) and the business ecosystem,” Babu said in a conversation with businessline.
He noted that the stabilisation of tender processes is expected to be fully achieved by the end of this year, paving the way for realistic and sustainable bids next year.
Babu stressed the importance of sustainable pricing in ensuring the viability of the Gross Cost Contract (GCC) model. “The GCC model works only when rates are balanced and reasonable. India’s vast and diverse market demands innovation across financing, operational, and procurement models. A mix of outright purchase and GCC approaches is essential to meet the varied needs of different regions,” he explained.
Babu elaborated on how Switch Mobility has been preparing for the future. In 2023, the company established OHM India, a dedicated mobility unit to streamline its focus on operations in the Gulf Cooperation Council (GCC) region. Additionally, it entered the light commercial vehicle (LCV) segment, expanding its market presence and product offerings.
Currently, Switch Mobility has a robust order pipeline of 1,900 electric buses to be delivered over the next 12 to 15 months. The order book includes 950 buses under a central tender (CSL), 320 for Bangalore (state tender), and 500 for Chennai (state tender). Beyond this, the company has delivered five double-decker buses to Bhubaneswar and secured an order for 20 more from Uttar Pradesh.
The launch of the EiV12 low-floor electric city bus was a key milestone for the company. This product broadens Switch Mobility’s portfolio, adding to its earlier 900 mm bus and addressing the needs of both Indian and global markets.
The intercity electric bus segment is also gaining momentum, driven by private operators venturing into this space. Babu described it as an exciting opportunity for the company.
“Our EiV12 intercity bus (2024 model) has been very well-received. It offers the highest seat capacity, reclining seats, luggage space, carriers, and air conditioning,” Babu said.
He noted that the company recently delivered 100 intercity buses to Uttar Pradesh and added 30 more, which are now operating on routes such as Agra to other cities.
The company has unveiled its IEV 8 electric truck, offering a range of 250 km on a single charge, to meet the demands of mid-mile logistics, intercity travel, and e-commerce sorting centres. Designed to transport perishable goods, the vehicle is also ideal for delivering white goods from warehouses or storage facilities to showrooms and end-users within cities. “This vehicle was developed in response to valuable feedback from current IEV 3 fleet operators, who highlighted the growing need for larger vehicles to manage increasing demand,” he stated.
Switch Mobility is on track to double its volume and revenue from last year to this year, with plans to sustain this trend over the next three years.