Olectra Greentech Ltd (OGL), a pioneering electric bus manufacturer, has achieved a significant milestone by surpassing 10,000 units in its e-bus order book, solidifying its position as the first e-bus OEM in India to achieve this feat. Alongside this achievement, OGL has successfully renewed its collaboration agreement with BYD, a prominent Chinese EV major, until December 31, 2030, underscoring the promising future of bus electrification in India.
In the fiscal year 2023-24, Olectra continued to secure orders from State Transport Undertakings transitioning to battery-powered buses. As of March 31, 2024, the company’s electric order book reached an impressive 10,969 units, with 507 buses delivered during the fiscal year. However, delays in trials and certification for bus batteries constrained higher deliveries during the period.
The company management indicated during the Q4FY24 earnings call that Olectra has homologated and completed AIS 038 certification for all e-bus models’ batteries, showcasing its commitment to compliance and quality standards.
During the previous fiscal year, Olectra secured what it terms as the ‘world’s largest e-bus order’ consisting of 5,150 units from the Maharashtra State Road Transport Corporation (MSRTC). Additionally, it bagged an order to supply 3,000 electric buses from the Brihanmumbai Electricity Supply and Transport Undertaking (BEST), Mumbai. Notably, the company also won a court case regarding BEST’s order for 2,100 buses.
As of March 31, 2024, Olectra has delivered 1,695 electric buses and 51 tippers. The company anticipates delivering over 2,000 electric buses in the current fiscal year, supported by the expected commencement of partial production from its new state-of-the-art plant in Seetharampur near Hyderabad, Telangana.
Sharat Chandra, Chief Financial Officer of Olectra, highlighted the company’s focus on increasing capacity and enhancing technology capabilities through the construction of the new greenfield factory. The facility, spread over a 150-acre site, is anticipated to commence partial production this month. The estimated investment in the new facility amounts to ₹700 plus crore, funded through a term loan of ₹500 crore and the remaining ₹200 crore via internal accruals. The new plant’s capacity is expected to reach 5,000 units by the end of this fiscal year and 10,000 units in the following year.
In the Indian electric bus market, which witnessed a remarkable 84% growth in FY24 with 3,708 units compared to 2,008 units in FY23, key players like Tata Motors, JBM Auto, Olectra Greentech, PMI Electro Mobility, and Mytrah Mobility emerged as frontrunners in e-bus deliveries.
With the Central Government’s aggressive push for electrification in the public transportation segment, the prospects for the adoption of electric buses are poised to escalate further. The government aims to replace approximately 8 lakh diesel buses, constituting about one-third of the total buses plying on roads, with battery-powered ones by 2030, signaling a transformative shift towards sustainable mobility solutions.