- 01 Jun 2022
- ICICIdirect Research
Government to announce mega tender for electric-buses
News: As per media sources, the government plans to come out with multiple tenders over the next one year for procurement of electric busses amounting to a total of 50,000 E-buses. It follows recent successful completion of ~5,400 buses tender. The new tender aims for deployment of electric buses in smaller cities over the next five to seven years
Views: The industry is witnessing good momentum in E-Bus procurement space with Tata Motors leading the charge currently by emerging as the lowest bidder for previous tender to be operated on operating lease model (rate quoted was ~Rs 43.49/km for 12m bus & Rs 39.21 for 9m bus). Tata Motors in a recent conference call guided that it is profitable at given rates and would generate healthy margins/ RoI over the life of the contract period. However, other competitors like Eicher motors (VECV) & Ashok Leyland in our coverage universe and Olectra Greentech & JBM Auto outside our coverage universe, would also deemed to be beneficiaries as they also operate in the similar space and have been winning tenders offered by various state transport undertakings (STUs).