Olectra Expands Electric Bus and Truck Production

Electric mobility company Olectra Greentech is working towards establishing an annual manufacturing capacity of 10,000 electric buses and trucks over the next two to three years. According to Mahesh Babu, Managing Director, Olectra Greentech, the expansion is aimed at meeting the growing demand for electric public transport and commercial EVs in India.Olectra expects India’s electric bus market to reach around 20,000 vehicles annually over the next three years. The company plans to develop a 10,000-unit capacity to address a significant share of this market. Babu said the planned capacity could potentially cater to around 40-50% of the anticipated market, even after factoring in utilisation levels.

The company plans to invest around ₹450 crore in developing next-generation electric bus and truck platforms, along with another ₹150 crore for infrastructure and facilities over the next few years. The R&D programme includes new 9-metre and 12-metre buses, a 12-metre city low-floor bus and a 13.5-metre coach for long-distance applications. Olectra is also developing a new electric truck platform.

Olectra next-generation platforms are expected to be introduced in Q3 and Q4 of FY27. The company said these products are being designed, developed and manufactured entirely in India, which will help reduce dependence on imported aggregates and shorten the supply chain. According to Babu, the company aims to source almost all major components locally, except cells, by December. Olectra already sources battery packs from domestic suppliers and is open to procuring locally manufactured cells once domestic production becomes available.

Olectra energy division currently contributes around 10% of its revenue, and the company aims to grow this business nearly fivefold over the next three years. However, financing, power supply, charging infrastructure and component supply chains remain key challenges for the EV industry. Olectra has cumulatively delivered more than 4,000 electric buses and has delivered over 350 vehicles in each of the last four quarters. The company noted that financing remains a challenge for private operators, with electric buses generally requiring five to seven-year financing tenures compared with three to four years for conventional diesel buses. Olectra plans to remain focused on the Indian market over the next two years while exploring export opportunities, with bus exports expected to begin from FY28.