Electric Bus Market Turns a Corner as PMI Electro Dominates PM E-DRIVE Deal

Key Highlights

• PMI Electro secures 5,210 out of 10,900 e-bus orders.

• EKA Mobility and Olectra emerge as key winners.

• Legacy bus manufacturers receive no allocation.

• Major cities are to get a large-scale e-bus deployment.

• The GCC model ensures cost-efficient operations.

India has completed its largest-ever electric bus tender under the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, marking a major step toward cleaner public transport across cities.

PMI Electro Emerges as the Biggest Winner

PMI Electro has emerged as the top beneficiary of the mega tender. The company secured 5,210 electric bus orders out of a total of 10,900 buses tendered, giving it nearly half of the total allocation.

PMI Electro already holds around 25% share of the 4,239 electric buses sold in India in 2025 and has an existing order book of 3,000 buses, further strengthening its leadership position in the electric bus segment.

Other Companies in the Tender Allocation

EKA Mobility, the electric vehicle arm of Pinnacle Industries, became the second-largest winner with 3,485 buses.

Olectra Greentech followed with 1,785 buses, while around 420 buses were awarded to the Anthony Travels consortium.

The government confirmed that the financial bids were opened after legal vetting, ensuring due process before finalizing the results.

Traditional Bus Makers Miss Out

The tender results highlight a clear shift in the electric bus market. Established bus manufacturers such as Tata Motors, Volvo, Eicher Commercial Vehicles, and JBM Auto did not receive any orders in this round.

Ashok Leyland also did not feature in the allocation. According to the government, its bid was not successfully submitted. The company’s subsidiary, OHM Global Mobility, has challenged the issue in the Delhi High Court, citing technical problems with the tender portal. Despite this legal challenge, authorities proceeded to conclude the tender after months of delay.

CESL Confirms Competitive Pricing

Convergence Energy Services Ltd (CESL), which is managing the tender, stated that the rates discovered were competitive and below initial estimates. The final results have already been shared with participating cities.

City Transport Undertakings will now move to the next stage by issuing Letters of Award and signing concession agreements with the selected operators.

City-Wise E-Bus Deployment Plan

Electric bus deployment under this phase of PM E-DRIVE is expected to begin next year. Major allocations include:

• Bengaluru: Nearly 4,500 buses

• Delhi: Around 2,800 buses

• Hyderabad: 2,000 buses

• Ahmedabad: 1,000 buses

• Surat: 600 buses

Gross Cost Contract Model Explained

The tender follows the Gross Cost Contract (GCC) model. Under this structure, private operators will own, operate, and maintain the electric buses, while city transport agencies will pay a fixed per-kilometre fee. This model helps ensure cost efficiency, predictable expenses, and long-term operational sustainability for urban transport systems.

Overall, the PM E-DRIVE tender marks a significant boost for India’s electric mobility push, with large-scale e-bus adoption set to transform public transport in major cities.

Also Read: Tamil Nadu CM Flags Off Volvo 9600 Coaches, SETC Launches Premium Intercity Bus Services

CMV360 Says

The PM E-DRIVE mega e-bus tender marks a major shift in India’s electric mobility journey. PMI Electro’s dominant win highlights the growing strength of focused EV players over traditional bus makers. With competitive pricing, large city-wise allocations, and the Gross Cost Contract model in place, the deployment of thousands of electric buses from next year is expected to improve urban transport efficiency and accelerate India’s clean mobility goals.