India EV sector sees new bus targets and revised government incentives

India is seeing strategic shifts in its electric vehicle (EV) sector through both private sector expansion and government policy adjustments. PMI Electro Mobility Solutions Pvt. Ltd. is targeting the school and staff transportation segments with purpose-built electric buses. CEO Dr. Aanchal Jain noted that while state transport undertakings have driven the market, the predictable routes of school buses offer a significant opportunity for electrification, with an estimated annual market of 30,000 school buses in India.

Simultaneously, the Ministry of Heavy Industries has amended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. The scheme's duration has been extended to March 31, 2028, with a total outlay of ₹11,900 crore. The amendment includes revised incentives for electric two-wheelers, reducing the cap from ₹5,000/kWh (maximum ₹10,000 per vehicle) to ₹2,500/kWh (maximum ₹5,000 per vehicle). The scheme remains fund-limited and will close if the allocated budget is exhausted before the 2028 deadline.