India's PM-eBus Sewa scheme to deploy 10,000 electric buses by 2027, expanding to 35,000 in second phase

The Indian government's PM-eBus Sewa scheme targets deployment of 10,000 air-conditioned electric buses across 116 cities in 26 states and Union Territories by 2027, with a second phase planned to expand the fleet to 35,000 vehicles. As of early 2026, agreements for 6,500 buses have been signed and 225 buses delivered, focusing on tier-2 and tier-3 cities with populations between 300,000 and 4 million. The Public-Private Partnership model is expected to benefit manufacturers including JBM Auto, Tata Motors and Olectra, alongside component and battery suppliers.

Why it matters: The scheme represents a major procurement pipeline for EV bus manufacturers and charging infrastructure providers targeting India's mid-tier cities, where state governments have historically faced high EV financing costs. With 3,500 buses still to be contracted in the first phase and 25,000 more planned for phase two, the programme offers sustained order visibility through 2027 and beyond.