India’s bus and coach industry is at an important turning point, with urbanisation, rising passenger demand, fleet replacement and cleaner mobility solutions reshaping the market. As cities expand and public transportation needs increase, opportunities are emerging across city, intercity, school, staff and last-mile mobility. In a recent conversation, Anand S, Vice President and Business Head, Commercial Passenger Vehicles, Tata Motors, shared his views on the industry’s growth prospects and the technologies that will define its future. He believes India remains one of the most under-penetrated markets in terms of bus usage, creating significant room for sustained growth. Electrification is expected to play a central role in this transformation. Tata Motors has already deployed around 3,800 electric buses, which have collectively covered approximately 53 million kilometres with more than 95 per cent uptime. Government initiatives such as PM-eBus Sewa and PM E-DRIVE are further accelerating the transition.
Q. How do you see the growth prospects for India’s bus and coach industry?
Anand S: The industry is poised for continued growth. India remains one of the most under-penetrated markets when it comes to bus penetration, while several macroeconomic factors are supporting demand. India’s GDP continues to grow despite the current geopolitical situation, and economic growth will require greater movement of people. Road transport will remain one of the most important modes of passenger movement. By 2030, around 40 per cent of India’s population is expected to live in urban areas. As cities expand and Tier-II cities grow, we will see the emergence of new schools, colleges, residential areas and commercial centres. This will create greater demand for last-mile connectivity, intercity transportation, school buses and staff transportation. Passenger movement in India, measured in passenger kilometres, is currently around 400 billion kilometres and is expected to grow by around 1.6 times over the next five years. This clearly indicates the potential for passenger mobility. At the same time, state transport undertakings need to replace ageing fleets. At least 30 per cent of the existing fleet requires replacement, which will create additional demand. The Government of India is also providing significant impetus to electrification through initiatives such as PM E-DRIVE, PM-eBus Sewa and the Production Linked Incentive scheme. These initiatives are encouraging both manufacturers and users and will add another layer of growth to the bus market. With the expansion of last-mile connectivity products such as Magic and the development of new applications, we believe the industry is poised for sustained growth.
Q. What are your expectations from the PM-eBus Sewa programme and what initiatives is Tata Motors taking to support public transportation?
Anand S: When electrification started gaining momentum, Tata Motors participated in the first two bidding rounds and successfully deployed around 3,800 electric buses. These buses have cumulatively covered around 53 million kilometres with an uptime of more than 95 percent. Our next focus was to advocate for a payment security mechanism and a separate or satellite model. After three to four years of continuous engagement and advocacy, the Government of India accepted these requirements last year, and we have once again started participating in the bidding process. The payment security mechanism and the satellite model are helping and encouraging us to participate in PM-eBus Sewa with greater enthusiasm and confidence. Going forward, we will continue to work with all stakeholders, including charging infrastructure providers and other ecosystem partners, to increase kilometres travelled, improve uptime and ensure greater availability of buses for the travelling public.
Q. What share of Tata Motors’ bus portfolio or the overall industry do you expect electric buses to account for?
Anand S: At present, electric buses account for around 4 to 6 per cent of the overall industry. Initially, electrification was largely concentrated in city buses. Now the industry is expanding into other segments. Tata Motors has developed the Intercity Magna coach, and electric buses are also being introduced in school and staff transportation applications. As these segments become increasingly electrified, we expect electric buses to account for around 20 to 25 per cent of the total bus industry in about five years.
Q. Where is Tata Motors focusing more strongly, R&D or electric bus development?
Anand S: We have invested across all powertrain technologies. As a leader, you cannot simply wait for the market to develop. We believe in creating the market. We already have experience across multiple technologies, including hydrogen, electric, diesel, bi-fuel and CNG. We have already deployed hydrogen buses and have a strong presence in electric mobility. Given the government’s clear impetus towards electrification, we are continuously investing significantly in R&D for electric vehicles. We want to ensure that we remain ready as the market evolves.
Q. What are the biggest challenges faced by STUs in transitioning from diesel to electric buses?
Anand S: The first challenge is that electric technology requires a new skill set. The necessary know-how may not yet be fully available across all state transport undertakings. The second challenge is operational know-how. Many STUs have extensive experience in operating diesel and CNG buses, but their experience with electric buses is still developing. It will take some time to build the same level of operational expertise. The third issue is range anxiety. Even though electric buses can operate over longer distances, STUs may look for ranges beyond 200 or 250 kilometres, particularly when planning certain applications. Most current STU electric bus purchases are for city operations, but range expectations remain an important consideration. As an industry and as an OEM, we will work with STUs to address this concern. The fourth aspect is charging infrastructure and the overall infrastructure requirement. The initial asset cost can also be higher, and it may take some time for the economics to fully mature. I would not necessarily call all of these challenges, but they are important factors that STUs need to consider while transitioning to electric mobility.
Q. How has the recent fuel situation affected Tata Motors’ bus business and sales growth?
Anand S: India faced challenges that affected everyone, but the Government of India took proactive measures to ensure fuel availability, both for manufacturing plants and for customers operating vehicles. As a result, we have managed to navigate the situation and the impact has not been as severe as it could otherwise have been. The situation has improved compared with what we experienced a few months ago.
Q. Beyond supplying buses, how is Tata Motors supporting STUs in areas such as charging infrastructure, fleet management and operations?
Anand S: We have a very strong after-sales support system. Under this, we provide driver training to ensure that drivers are able to get the best performance and efficiency from the vehicle. We also provide technician training, which helps STUs reduce maintenance costs and improve the ability of their teams to handle the vehicles. Most importantly, we place a strong emphasis on safety. Safety is not a one-time exercise. It requires continuous education, training and reinforcement, and this is something we continue to support at STUs.
Q. What opportunities do you see for hydrogen fuel cell buses in India?
Anand S: Tata Motors has already deployed 15 hydrogen fuel cell buses, which are operating successfully for Indian Oil. They have been running for nearly two years and have demonstrated the viability of the technology. We are ready with the technology and have already demonstrated its capabilities through successful deployment. For hydrogen mobility to scale further, however, hydrogen infrastructure and the price of hydrogen will need to reach appropriate levels and be available at the right locations. I believe this will develop over time. As an OEM, we are ready for the opportunity.
Q. What innovations can passengers expect from Tata Motors in areas such as safety, comfort and connectivity?
Anand S: Innovation is the bedrock of everything we do. Magic EV itself is an example of innovation. Once certified and launched, it will be the first certified four-wheeler of its kind on an EV platform. The bus displayed here is also significant because it is the first rear-engine midi bus from Tata Motors. The electric bus we are sitting in has not been designed simply as an electric bus or a school bus. It has been developed specifically for a particular category of users and application. Innovation is not only about introducing a new technology. It is also about understanding the right application, the right customer and the right solution for that customer. That is what makes a product truly attractive.
Q. How do you see software and artificial intelligence transforming Tata Motors’ operations and customer experience?
Anand S: We are already living in the era of AI, and Tata Motors is deploying artificial intelligence across multiple areas. One of the key applications is improving the way we serve customers. We are using AI to identify potential predictive breakdowns so that we can proactively support customers before a failure occurs. We are also using AI to understand customer propensity to purchase and improve our ability to respond to customer requirements. These are just a few examples of the many applications we are exploring. Ultimately, all these initiatives are customer-focused. Our objective is to use technology, including AI, to improve customer experience, vehicle uptime and the overall ownership experience.