The path to 100% EV adoption in the intercity bus industry is filled with financial, operational, and infrastructure challenges, writes Surya Khurana, Managing Director, FlixBus India.
As the world is constantly making efforts to fight against climate change, electric vehicles (EVs) are emerging as a critical tool for sustainable development. In India, the intercity bus industry presents a unique opportunity for large-scale EV adoption, promising a greener alternative to long-distance travel. However, this transition faces a myriad of challenges, ranging from financial constraints to technological and infrastructural hurdles. Overcoming these barriers will require a comprehensive, collaborative approach from stakeholders.
Financial Hurdles: Balancing Cost and Confidence
The high upfront cost of electric buses remains a significant barrier for operators. Despite government subsidies and tax benefits, financial institutions view EVs as highrisk assets due to concerns over battery depreciation and uncertain resale value. This risk perception translates to higher interest rates for loans, making the total cost of ownership (TCO) for EVs less attractive compared to diesel buses.
For small and medium-sized operators, already constrained by narrow profit margins, this financial burden limits their ability to expand EV fleets. As a result, the intercity EV market is often dominated by well-capitalized players, creating an uneven playing field.
Operational Challenges: Testing the Limits of EV Technology
Intercity bus operations are demanding, involving long routes, variable terrains, and high passenger expectations for reliability. The limited availability of road-ready intercity electric coaches exacerbates these challenges. While a few manufacturers like Olectra and JBM offer deployable models, many others are still in development, delaying fleet expansion.
Maintenance is another critical concern. EV servicing requires specialized skills and infrastructure, which are still nascent in India. Operators fear revenue losses due to extended downtimes caused by spare part shortages or inadequate service networks. Furthermore, the longterm reliability of electric buses, particularly regarding battery life and range under real-world conditions, remains uncertain, discouraging broader adoption.
Infrastructure Gaps: Addressing the Weakest Link
Charging infrastructure poses one of the most significant barriers to EV adoption in the intercity bus sector. Most charging facilities are concentrated in urban areas, leaving highways and transit hubs underserved. Long-haul routes require strategically placed charging stations, but the lack of dedicated facilities for buses forces operators to compete with smaller vehicles for access.
High electricity tariffs for commercial charging further inflate operational costs, while long charging times disrupt schedules, complicating operations on high-frequency routes. Without affordable tariffs and faster charging solutions, the economic and operational benefits of EVs remain out of reach for many operators.
The Path Forward: Building Confidence in Electric Mobility
Addressing these challenges requires a multi-pronged approach. Policymakers must incentivize EV adoption through interest subventions, extended warranties, and tax benefits. Financial institutions need to offer tailored loan products for EVs, incorporating battery recovery safeguards to reduce risks.
Strengthening the service ecosystem is equally crucial. OEMs should expand service networks, ensure spare part availability, and provide warranties to reduce downtime risks. Investments in highway charging infrastructure and preferential electricity tariffs for EV fleets will further bolster adoption.
Additionally, creating a secondary market for EV buses through battery leasing or repurposing can alleviate depreciation concerns. Establishing clear benchmarks for resale value will also encourage operators to embrace electric mobility. While the road to 100% EV adoption in the intercity bus industry is complex, it represents a transformative opportunity to redefine sustainable transportation. With collective efforts, India can lead the way in green mobility innovation.
Surya Khurana
Managing Director
FlixBus India