Report

The Asia-Pacific Electric Bus Market size is estimated at USD 44.74 billion in 2024, and is expected to reach USD 73.88 billion by 2029, growing at a CAGR of 10.55% during the forecast period (2024-2029).

The Asia Pacific Electric Bus market suffered a big decline during the COVID-19 pandemic due to manufacturing shutdowns, lockdowns, and trade restrictions. Furthermore, the fall in automotive production restrictions on travel in public transport, and lack of labor significantly impacted the market. As automotive manufacturers have resumed operations due to steadily rising automobile sales in countries with a limited number of COVID-19 cases, the market is likely to recover during the forecast market. Furthermore, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry.

Over the long term, increasing investments in production capacity by major industry players, as well as various policies announced by the governments of China and India to completely electrify the public transport in their respective countries by 2030 , adoption of stringent automotive emission norms like Bharat Stage 6 norms in India and announcement by major countries like China, India, Japan and South Korea to ban sales of new ICE engine vehicles by 2040 are creating demand in the electromobility industry with a surge in sales of electric buses in the region. Higher purchasing price of electric buses than diesel/CNG buses, lack of charging infrastructure and prominence of diesel buses in markets like Japan and ASEAN are likely to be the major restraints for the growth of electric buses in Asia-Pacific.

Key players in the market are entering new markets to cater to the increased demand for electric buses. For instance, in May 2022 BYD announced the launch of its electric buses in Japan and announced the target of selling 4000 electric buses in Japan by 2030. Also in August 2022 CATL and Zhengzhou Yutong Bus Co. Ltd. extended their cooperation for electric batteries till 2032.

China is the largest market for electric buses due to the presence of large number of electric bus manufacturers and the government plan to decarbonise the public transport in the country before 2030. India is the fastest growing market for electric buses in the region largely due to government initiatives like allocation of USD 10 billion to purchase 50000 electric buses to make all the public transport in the country carbon neutral by 2030. Thus electric bus sales in Asia-Pacific are anticipated to grow at a healthy CAGR due to the confluence of the above factors.

APAC Electric Bus Market Trends

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.


APAC Electric Bus Industry Overview

The Asia-Pacific electric bus market is highly consolidated. The market is characterized by the presence of considerably large players who have secured long-term supply contracts with major municipal operators looking to completely electrify their public transport networks and reduce their carbon footprint. These players also engage in joint ventures, mergers and acquisitions, new product launches, and product development to expand their brand portfolios and cement their market positions.

Some of the major players in the electric bus market include BYD, Tata Motors, Yutong, Switch Mobility (Ashok Leyland), Olectra Greentech Ltd., VE Electro Mobility Ltd., etc. Indian manufacturers like Ashok Leyland Ltd. are also securing major orders for electric buses which is rapidly expanding the market. For instance,


- In August 2022, Ashok Leyland-owned Switch Mobility unveiled India's first air-conditioned electric double-decker bus for BEST in Mumbai.
- In August 2022, Ashok Leyland owned Switch Mobility delivered 75 electric city buses to Bengaluru Metropolitan Transport Corporation (BMTC) as a part of 300 bus order.


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