Electric Bus Manufacturers in India – Where to Invest?

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Hi all, I hope you are doing well. In our quest to understand different sectors of the Indian economy for investment purposes, I will discuss a very interesting part of the public transport sector in today’s blog.

It is about the Electric Bus Manufacturers in India.

These are small-cap companies that are purely working in the Automobile sector as Auto Ancillary companies and have turned into Electric Bus manufacturers in recent years to cater to the huge demand for the pollution-free public transport of the county.

Let us understand this.

This is in continuation of our sectoral blogs. Please visit the below as well

  • Read more about the packaging sector here
  • Read more about the glass manufacturing sector here
  • Read more about the railway sector here
Also Read on FinMedium:  My Story – Big Vision Investing

Why Electric Bus is the new buzz in Public Transport in India?

The world is reeling under two major issues relating to mobility – environmental pollution and congestion.

Of the 20 most polluted cities in the world, 14 cities are in India. Transport is one of the biggest contributors to pollution and public transportation accounts for 90% of transport.

Thus, the transition to sustainable & clean mobility is a necessity and not an option. Furthermore, the penetration of buses in India is less than 2 buses per 1,000 populations* – this is set to increase exponentially.

*Source: JBM Auto Annual Report FY20

Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-India) Scheme is launched under National Mission on Electric Mobility in 2011/ National Electric Mobility Mission Plan 2020, unveiled in 2013.

The scheme aims to encourage progressive induction of reliable, affordable, and efficient electric and hybrid vehicles (xEV)

FAME India Scheme - Electric Bus Manufacturers in India
Source: Fame scheme website

The government has approved Phase-II of the FAME Scheme with an outlay of  Rs. 10,000 Crore for a period of 3 years commencing from 1st April 2019.

Out of total budgetary support, about 86 percent of the fund has been allocated for Demand Incentive so as to create demand for Electric Vehicles (xEVs) as well as Electric Bus Manufacturers in India.

This phase aims to generate demand by way of supporting 7000 Electric Buses (e-bus), 5 lakh Electric Three Wheelers (e-3W), 55000 Electric Four Wheeler Passenger Cars (including Strong Hybrid) (e-4W), and 10 lakh Electric Two-Wheelers (e-2W).

However, depending upon the off-take of different categories of xEVs, these numbers may vary as the provision has been made for inter as well as intra segment-wise fungibility.

In addition, the creation of Charging Infrastructure will also be supported under the Scheme.

Read more at https://fame2.heavyindustry.gov.in/Index.aspx

Listed Electric Bus Manufacturers in India

  • Ashok Leyland
  • Tata Motors
  • Olectra Greentech Ltd
  • JBM Auto Ltd

In this blog, we will be discussing on last two small-cap companies that are establishing themselves as “Made in India” E-Bus manufacturers in the competitive market.

1st two have other passenger vehicle and commercial vehicle businesses including E-Bus.

We know those companies as they are widely discussed in news and media on day to day basis.

Olectra Greentech Ltd – One of the Electric Bus Manufacturers in India

Olectra Greentech Ltd (A Group Company of MEIL) is a pioneer in electric bus manufacturing and insulators in India, With this Endeavour, OGL has been a part of building Power Transmission and distribution in India.

Olectra vision to support the environment has led to a new phase by developing Innovative solutions for society.

As a part of its mission, Olectra embraced its growth path into new-age green technology.

Read more at https://olectra.com/

Olectra Greentech Electric Bus Manufacturers in India


Sales During the Financial Year 2019-2020, the Company has recorded the sale of 155 Electric Buses against the sale of 83 Electric buses in the Financial Year 2018-19, at a growth of 86.75%.

The company has been awarded orders for 775 Electric Buses against orders for 160 Electric Buses in the Financial Year 2018-19. This comes at a growth of 384.37%.

Revenue of E -bus business:

Sales of Olectra Greentech

Source ARFY20

Fundamental Stats via screener.in

Olectra Greentech Ltd
Market Cap₹ 1,133 Cr. Dividend Yield0.00 % Debt to equity0.02 ROE 3Yr-0.81 %
Current Price₹ 138 ROCE1.61 % Pledged percentage2.52 % ROE 5Yr0.35 %
High / Low₹ 192 / 41.0 ROE-0.39 % Promoter holding59.0 % ROCE3yr avg1.61 %
Stock P/E 110 Face Value₹ 4.00 PEG Ratio EPS₹ 1.24
Book Value₹ 88.7 Return on Equity-0.39 % PB X PE Price to Earning

JBM Auto Ltd

JBM Auto is one of the electric bus manufacturers in India that is engaged in the automotive business that manufactures and sell sheet metal components tools dies & molds and buses including the sale of spare parts accessories & maintenance contract of Buses.

JBM has redefined public transportation through its best-in-class, modern, and technologically superior low emission & electric buses that have established benchmarks in the areas of passenger comfort, safety, affordability, and innovation.

Read more at http://www.jbm-group.com/JBM_HomePage___1.html

JBM Auto Limited

According to a study by BIS Research, the Indian electric vehicle ecosystem market is currently in a nascent phase.

The government’s push to ensure EV adoption through subsidies and tax benefits is propelling market growth.

The EV market is anticipated to grow at a robust CAGR of 43.13% during the forecast period from 2019 to 2030. Additionally, the installation of charging infrastructure is projected to grow at a CAGR of 42.38%.

Despite the Indian automotive industry experiencing a sharp decline in FY19, the electric vehicle market is expected to continue to grow in the coming years.

With the BS6 norms becoming applicable from April 2020, electric vehicles will become more price-competitive with conventionally fueled vehicles, thus accelerating electric vehicle sales in the country

E-bus comes under the OEM (Original Equipment Manufacturer) division of the company.

Source: AR FY20


The OEM division’s revenues have almost doubled over the last financial year.

OEM division revenue increased to Rs. 238.99 cr as against Rs. 120.50 cr in FY19. OEM division performance has enhanced multifold and is expected to set a higher benchmark in the coming years with an increasing market penetration of our products.

  • OEM division sales increased due to the sale of buses to various customers for operations of buses under Delhi Integrated Multi-modal Transit System Limited (DIMTS), and Gurugram Metropolitan City Bus Limited (GMCBL).
  • Launch of the first-ever lot of 30 Electric buses which have been sold to Navi Mumbai Municipal Transport (NMMT) during the year. This opens up a new segment of Electric Mobility in JBMA.

JBM forayed into the electric vehicle portfolio with a comprehensive approach to provide end to end e-mobility solutions.

With this vision, they are setting up the electric vehicle charging stations starting from E-Bus depot electrification to enable electric public transportation.

JBM act as Charge Point Operator establishing EV charging sites for Cab aggregators across the major cities in India. These charging stations are a blend of AC slow chargers as well as DC fast chargers.

JBM has 1500+ charging sites in India

Fundamental Stats via screener.in

JBM Auto Ltd
Market Cap₹ 1,708 Cr. Dividend Yield0.48 % Debt to equity0.90 ROE 3Yr15.6 %
Current Price₹ 361 ROCE12.4 % Pledged percentage0.00 % ROE 5Yr16.4 %
High / Low₹ 367 / 95.0 ROE10.2 % Promoter holding67.5 % ROCE3yr avg15.7 %
Stock P/E64.0 Face Value₹ 5.00 PEG Ratio-11.8 EPS₹ 6.20
Book Value₹ 148 Return on equity10.2 % PB X PE157 Price to Earning64.0

Also Read: Rane Madras Share and Company Analysis

Summary Notes

As I stated at the start of the blog, this is an attempt to bring your attention to small-cap electric bus manufacturers in India and scaling up with time to cater to demand in this business.

These are strong promoter backed companies.

E mobility is just at the start of the long haul in India’s journey to become a CO2 emission-free country.

Moreover, with Tesla’s entry in India, the electric vehicle space will get more competitive in the future. Will Tesla foray into electric bus manufacturing in the future?

One should watch these companies overtime on performance and take their investment decision. Small-cap electric bus manufacturers in India have their own risk and advantage associated with it.

I hope you got to know something new about the electric bus manufacturers in India today.

Watch: Top 5 Electric Bus Manufacturers in India


Anup Lamb

Cover Image: Proterra

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Prateek Goel

Prateek Goel

Co-founder of Investeek, Prateek has been investing in the stock markets since 2006 and has beaten the NSE/BSE on a consistent basis. At the age of 24, he was also featured in India Today for his expert insight on gold trading.
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