India's electric bus market is entering a rapid growth phase, driven by government initiatives, increasing urban mobility demand, and declining battery costs, as highlighted in a report by consulting firm KPMG. Historically, the bus market has seen annual sales between 35,000-50,000 units, and it is now rebounding strongly post-Covid-19, supported by fleet replacement and infrastructure expansion. The government is promoting clean public transport through schemes such as PM-eBus Sewa and PM E-DRIVE, making electric buses a pivotal element in achieving India’s decarbonisation goals, as they account for nearly 60% of passenger kilometres travelled. While state transport undertakings (STUs) dominate electric bus deployments, private operators are anticipated to drive future growth, despite challenges like high upfront costs and limited charging infrastructure. As of March 2026, 62,000 electric bus tenders have been floated, but only 16,300 buses are operational, reflecting significant execution bottlenecks. The report states that total cost of ownership parity has been reached for intra-city electric bus operations, particularly for routes exceeding 150 kilometres daily, with inter-city parity expected by 2030. New-age mobility firms are increasingly competing with traditional manufacturers, winning 65% of electric bus tenders, indicating a dynamic shift in the market landscape.