Market Trends of Asia-Pacific Electric Bus Industry
This section covers the major market trends shaping the APAC Electric Bus Market according to our research experts:
Battery Electric Bus Segment to Play Prominent Role in the Market
Transit agencies across various countries have been significantly promoting the adoption of electric buses for public transportation. The adoption rate is climbing in the Asia Pacific. According to UITP, the global share of electric buses among the entire bus sale will be 10% in 2021 and is expected to cross 40% market share in 2022. Nearly 1245 electric buses were sold in India in the year 2021 which amounts to almost 107.5% growth over 2020.
The Battery Electric Bus sub-segment contributes 90% of revenue to the Asia -Pacific electric bus market by vehicle type because plug-in hybrid buses are still in a nascent stage and major manufacturers like BYD, and Tata Motors Ltd. make only battery electric buses. The market is primarily driven by large orders from municipal operators for electric buses.
For instance,
- In August 2022, the Government of India sanctioned USD 10 billion to procure 50000 electric buses by 2030 under CESL. Delhi Transport Corporation (DTC) has announced to add 8000 electric buses to its fleet by 2025.
- In August 2022 Tata Motors Ltd. also bagged an order to supply 1180 electric buses to West Bengal Transport Corporation (WBTC) under CESL.
- In July 2022 Tata Motors Ltd. won an order to supply 921 electric buses from Bengaluru Municipal Transport Corporation (BMTC).
China to Play Key Role in Development of Asia-Pacific Electric Bus Market
China is the most dominant market followed by India and South Korea. China's fleet of electric buses accounts for more than 98% of the total electric buses running. China has a fleet of more than 500,000 electric buses. This high adoption can be attributed to a strong municipal framework that many provinces in China have adopted. More than 30 Chinese cities have made plans to achieve 100% electrified public transit by 2022, including Guangzhou, Zhuhai, Dongguan, Foshan, and Zhongshan in the Pearl River Delta, along with Nanjing, Hangzhou, Shaanxi, and Shandong.
As of December 2021, nearly 16,000 electric buses were operated in Shenzhen, one of the Chinese megacities. Beijing has put 11000 electric buses on road in 2020 surpassing its initial target of 10000 electric buses. Guangzhou ordered 4810 electric buses from the electric bus manufacturer BYD.
Chinese manufacturers such as BYD have started exporting electric buses as well. In August 2022 Foton won an order to deliver 1022 electric buses to Santiago, Chile. In December 2021 Olectra Greentech Ltd. in association with BYD announced to setup India's largest electric bus manufacturing plant at Hyderabad with an annual capaciyty of 10000 units. In January 2021 BYD won a tender to supply 1002 electric buses to Bogota, Colombia. Thus Chinese electric bus manufacturers are expected to significantly ramp up their manufacturing both domestic and overseas to cater to the increased demand. This factor will expand the market growth during the forecast period.
India is also experiencing a rapid growth in elctric bus sales due to rapid spending on the procurement of electric buses in large batches to implement plocies like FAME 2 to increase the adoption of electromobility in the country. Thus, with companies securing significant new orders from municipal operators in this segment and manufacturers expanding the manufacturing capacity for battery electric buses, the market is expected to grow over the forecast period for the battery electric bus segment. For instance,
- In September 2022 Olectra Greentech Ltd. secured an order of 100 electric buses from Assam State Transport Corporation In India.
- In September 2022 Olectra Greentech Ltd. secured an order of 123 electric buses from Thane Municipal Transport Undertaking in Maharashtra , India for a value of INR 185 million.
