Government may ban registration of intra-city ICE buses from 2026

The Indian government is plugging in all points to make electric mobility a reality in India. With each passing day, there seems to be a growing interest among various ministries to come out with some supporting policies to make the country a prime example for manufacturing and adoption of environment-friendly vehicles.

It is learnt that the government is now planning to ban the registration of IC-engine buses in the country for intra-city transport starting 2026. Before that year, it is understood that the government proposes to have 30 percent of intra-city buses to be electric.

If the proposal goes through, Indian OEMs will need to up their game to be able to take advantage of the robust order that may come through under the FAME II scheme. What's more, the government will incentivise around 7,000 buses under the Rs 10,000 crore outlay under the FAME II scheme.

On the other hand, NITI Aayog has already asked two- and three-wheeler makers to come out with a roadmap that will see sales of only electric three-wheelers and electric two-wheelers starting 2023 and 2025 respectively. It has also recommended phase-wise introduction of commercial four-wheelers through fleet owners including taxi aggregators from 2.5 percent in 2020-21 to 40 percent in 2025-26.

To ensure that the EV charging ecosystem is also green, the Centre is working on ensuring that all charging stations are connected with the grid and the power is generated from solar power plants to ensure grid stability and green energy. Proposals are invited from cities that intend to develop electric vehicle charging infrastructure in million-plus cities as per the 2011 census.

In FY2019, a total of 39,612 M&HCV passenger carriers (buses) were sold (+9.68%) and 52,170 LCV passenger carriers (+6.47). In the just-ended first quarter of FY2020, a total of 10,361 M&HCV buses (-1.37% and 15,868 LCV buses (-2.19%) have been sold.

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