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The Delhi government has announced the induction of 2,800 new air-conditioned low-floor electric buses

ICICIdirect Research 20 Jul 2026 DISCLAIMER

News: According to media sources, The Delhi government has announced the induction of 2,800 new air-conditioned low-floor electric buses under PM E-Drive scheme, with deployment scheduled for next year. The initiative aims to reduce air pollution, improve public transport services, and accelerate the city's transition to cleaner mobility. The government also plans to expand Delhi's public transport fleet to around 14,000 buses by 2028–29 (vs. current fleet size of ~6,600 buses), strengthening connectivity and enhancing commuter convenience.

View: This comes as a positive development for Electric bus manufactures like Switch Mobility (Ashok Leyland), Olectra Greentech, JBM auto & Tata Motors commercial Vehicles. This will also be supported with the recently announced vehicle replacement scheme which targets BS-IV and older trucks and buses, encouraging owners to replace them with BS-VI and Electric Vehicles (EVs) which covers ~16,330 buses in the Delhi NCR region. With focus, on clean mobility, EV buses as a segment is expected to spearhead growth in the domestic CV space over next 3-5 years.

Impact: Positive

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