New Delhi: With retail fuel prices rising by almost Rs.4/liter due to escalating global oil prices, a widely cited report says that the government is looking to spend $1 billion to nudge private commercial bus and truck operators to switch to Electric Vehicles (EVs).
According to the report, the scheme is targeted at the private fleet segment, which accounts for more than 85% of the total commercial vehicles plying on Indian roads. Previous programs like the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) subsidy and the PM e-Bus Sewa awas aimed mostly at state-run municipal transport bodies, this new fund would have a far greater impact on overall fuel consumption as heavy commercial vehicles consume over 56% of diesel in India.
If this deal is implemented, it could save us almost $3.2 billion every year in foreign exchange oil import bills.
The government has already started to replace its old diesel buses with e-buses under the PM e-bus sewa scheme, with a mammoth 10,900 buses tender awarded to PMI Electro for inter city transport already raised in December 2025.
Though there will be challenges with developing the required charging infrastructure, this remains a step in the right direction. Leading electric bus manufacturers, including Switch Mobility, PMI Electro, Tata Motors’ shares will remain on the spotlight today following the news.
