Indian Bus Market and Product Analytics is a unique analytics that covers various aspects of buses and Bus models. The Bus Industry registered 5.5% growth in FY 2026, the slowest since the COVID-19 pandemic. One of the key drivers of Bus growth is that bus passengers prefer to take new Buses. There is pressure on the Bus fleet owner to buy the new buses to attract the passengers and Bus drivers.

The Bus application is the backbone of the Indian Bus Industry, and mapping it to models provides a complete picture. The Bus fleet operators and passengers are also key stakeholders of the Indian Bus Industry.

SnapShot: Indian Bus Market & Product Analytics

Indian Bus Market Tracker:

Monthly, Quarterly, and Annual Tracker:

Electric bus manufacturers such as JBM, Olectra, PMI, and Switch Mobility recorded strong growth in FY 2026 compared with the previous financial year. In ICE Buses, Force Motors registered the highest growth of 16% in the current financial year. Currently, tender business is the main driver of Electric Buses, but private passengers could become the key buyers in the next decade.

Tata Motors, SML Mahindra, and Mahindra also saw 1%, 12%, and 8% growth in FY 2026.

Ashok Leyland is losing its position in the heavy-duty segment due to minor product issues related to BS VI norms. Since FY 2021, it has lost 3% market share.

Buyers of Mini Buses are shifting towards Force Motors because Demand for the Urbania model is high. However, in some bus pockets, there is an oversupply of buses, such as in the Pune region.  This could affect the future demand for buses.

Bus Application-wise Analysis

Mapping with Key Models:

Urbania’s price is an average of 32 lakhs, compared to the Force Traveller’s 22 lakhs. The charges are around 35-40 INR per km for Urbania. But the name Urbania successfully won the trust of passengers, especially in the Tourist segment. The passengers are ready to pay a premium for Urbania because the Bus interior is excellent for Urbania.

Force launched a new bus called the Force Traveller Monobus with a Monocoque Structure. This bus is highly suitable for Staff application. The price of the bus is around 30 lakhs with excellent mileage of around 7 to 8km/l.

In segments of 12m or more, the washroom became compulsory for the Intercity Bus segment due to passenger demand. The trend is moving towards 13.5m buses because Bus operators have an extra 6 sleeper seats, which generates extra revenue. Volvo 9600 is the only Bus in the 15m length category.

Tata 1822 and Ashok Leyland 2513 are popular models in the 13.5m segment, delivering 15-20% higher revenue.

BharatBenz buses, models 1824 and 1017, offer superior comfort to passengers but come at a 10-12% higher price. The Eicher 6000 series offers high mileage at low prices (6-9%). Tata Motors is known for its performance, and Ashok Leyland for Durability.

Like Trucks, Eicher offers better fuel efficiency, but it comes with a 4-cylinder engine, which can be noisy. The Eicher Body is built at the Volvo Plant, resulting in a much better quality of the Bus Body.

Due to the Bus body code AIS 153, the market share of the Fully Built Bus body increased to 78%, while only 22% of Buses Were sold as chassis. The AIS 153 is applicable to around 80% of the Bus Market in India because it offers advantages for passengers (FDAS, FDSS, CCTV, etc.), such as safety, for bus fleet operators, such as lower risk and higher asset safety, and for drivers. All buses are included under AIS 153, regardless of GVW and Bus length, because student safety is the first priority.

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The Indian Electric Bus Market Forecast Report provides detailed strategic insights into the Indian Bus Industry. Indian Electric Buses are set to undergo a major shift from niche to mass market over the next 10 years. Currently, the STU is the major electric bus user, but private Bus operators are now ready to take the steering of electric buses into their own hands under certain conditions.

It is expected that 50% of buses in the 7m-and-above segment will be electric by 2040 in the Indian Electric Bus Market.  The current fleet of Electric Buses in STUs is in 9 and 12m. The 12m standard floor/Low floor buses for Intercity and city applications. 9m standard floor Electric buses for medium-density urban routes and 7m standard floor for narrow streets or low-density. There are 2 major buyer groups for Electric Buses: Private operators and STUs. Private operators are the backbone of the Indian mobility sector.

A new tender was opened in April 2026 for 3,604 electric buses across 17 states and union territories. The Government of India is also taking steps to introduce the Intelligent Transit Management System (ITMS), as it makes the process more transparent and brings several key benefits for Passengers, Authorities, and operators.

However, there is a significant gap between the open tender and the operation of buses due to various reasons.

Snapshot of the Full Report: Indian Electric Bus Market Forecast

A large share of bus operators in India still belong to unorganized groups, and most of them work in a traditional style.

We study various aspects of why India’s Bus Operators are Finally Switching to Electric buses. According to our ACG survey, OEMs need to communicate with the market more effectively. It is not just about the Pricing of the Bus and ROI, but also about connecting the entire ecosystem, like Electric Bus, energy, infrastructure, and commercial benefits.  We have conducted an in-depth study of several bus fleet owners, Policymakers, Policies, OTA platforms, Passengers, and others.

Electric Bus Business Case:

Private Bus operators are expected to carry around 35 crore per day by 2030, including STU. This is the big market potential and opportunity. At least 50% of passengers expect a comfortable journey, and they are ready to pay for value and comfort.

The first basic condition is that it provides confidence that the bus will reach the destination either with a 50-60 min charging time or without intermediate charging. If the one-way distance is around 300km, then the electric bus fulfills the basic requirement. The second challenge is the Bus’s purchase price.  The Electric Bus Business case looks favorable, even with double the price of the ICE buses. Diesel costs are a major component of ICE bus operating expenses. Passengers enjoy traveling in electric buses because they are low-NVH, Silent, and feature-rich.

Electric Bus Price position and Paypack period:

One of the main hurdles to perception is the high price of the Electric Bus. The average price of the Intercity bus is around 2 crore. Compared with the ICE bus in the same segment, the Electric Bus is around 65% more expensive.

The Volvo 9600’s price is almost the same as its position. According to the ACG Business case, the payback analysis is favorable if the bus runs 700-800km per day.

Some prime routes where electric buses will be deployed in the next 2 to 3 years include Bangalore-Hyderabad, Bangalore-Chennai, Gandhinagar-Vadodara-Surat, Bhopal- Indore, and Bangalore-Coimbatore. Once the charging infrastructure is available, there will be a jump in the share of electric buses. Some routes, like Delhi to Manali, work by installing a charging station at an intermediate restaurant. While the Bus was being charged, the passengers could have tea and snacks. The charging must be fast, with more than 350 kW.

Electric Bus Market Forecast:

The demand for electric buses will increase when all stakeholders are satisfied or delighted. It has been observed that when passengers are happy, there is a significant increase in electric bus registrations. If Bus passengers are happy, they become more loyal customers of the Bus fleet, which results in them becoming frequent travelers. The consolidated impact will be positive for Electric Bus demand.

Currently, Neugo operates electric buses on some popular routes, such as Bangalore-Chennai, with one intermediate fast-charging stop in 40 min to reach 87% battery charge. Leafy Bus is another Private Bus Fleet operator who is running Electric Buses between Dehradun and Delhi. With 85 to 90% occupancy, the buses’ duty cycle is around 800 to 900km in 24 hours. The Bus fleet has 12.4m JBM buses with 49 passengers.  Since the operations are successful, the company plans to increase its Electric Bus fleet to 6 times its current size.

The Bus Fleet owners have started considering electric buses for their fleets. ACG helps them transition from ICE to Electric Bus fleet ownership. More than 69% percent medium and large fleet owners who operate on the main route are interested in adding electric buses to their fleet.

There are also some challenges in the overall Bus journey, as passengers willing to travel by bus are facing issues. This is a barrier to using buses or replace from Train to Buses:

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The Force Motors Model Variants-wise Sales Forecast has segments such as Bus, Agricultural Tractor, and SUV. Force Motors had 277 Model variants in 2020, which had been optimized and had only 67 Model variants in 2025. There are still opportunities to phase in additional varieties and launch new models.

The company registered 17% growth in 2025 compared to 2024, and its sales doubled compared to 2020.

The Traveler is the leading force motor for school, staff, and Ambulance applications, in high demand among passengers and travel agencies. The Urbanis became the first choice for the luxury travel segment.  Customer demand for the Urbania bus is high.