TL;DR
New-age electric bus manufacturers PMI Electro Mobility and Eka Mobility have secured 80% of India's massive ₹10,900 crore electric bus tender, beating traditional auto giants due to aggressive pricing.
In a significant upset for established automotive players, new-age electric bus manufacturers, PMI Electro Mobility and Eka Mobility, have secured approximately 80% of the ₹10,900 crore PM E-Drive tender for 10,900 electric buses in India. This surprising development leaves industry stalwarts like Tata Motors and VE Commercial Vehicles without any orders, while Ashok Leyland missed the bidding due to a technical glitch and is reportedly pursuing legal action. The success of the newer companies is largely attributed to their aggressive and notably lower pricing strategies, which undercut earlier market expectations by 5-15% and saw margins as thin as 20 paise in some instances.
PMI Electro Mobility emerged as a major winner, securing contracts for 5,210 e-buses, with Eka Mobility following closely with 3,485 e-buses. Government officials and industry executives have highlighted that the discovered prices were considerably lower than anticipated, a level that traditional manufacturers either could not match or were unwilling to accept given their existing cost structures. This outcome signifies a notable shift in India's electric mobility landscape, empowering emerging players in the large-scale public transport electrification drive.
