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The Economic Benefits of Intercity Electric Buses, ET TravelWorld
Chirra, Founder and CEO, Fresh Bus.India’s transportation sector is undergoing a transformative shift towards sustainability and energy independence. At the forefront of this change is the electrification of intercity bus travel, a move that promises not only environmental benefits but also significant economic advantages.
Currently, India is the third-largest importer of crude oil globally, importing approximately 87.7% of its crude oil requirements worth $240 billion, a dependency that exposes the nation to global oil market volatilities and impacts our trade balance. Diesel-powered buses and freight transports are substantial consumers of this imported fuel, contributing to this challenge. Which translates to every time we choose cleaner mobility, we’re not just protecting the planet, we’re also protecting our economy. With intercity and freight transport consuming a major chunk of fuel, yet clean, scalable alternatives are still rare and infrequent.
This dependence not only puts pressure on public sector expenditure but also places transport operators at the mercy of unpredictable fluctuations in fuel prices. The volatility in fuel costs ultimately affects the affordability and consistency of services available to Indian travelers.
Transitioning to electric buses offers a compelling solution. While the initial investment for an electric bus is around ₹2.5 crore, 44% of this cost is typically offset over time by savings on fuel and maintenance, which make up a significant portion of the operating expenses in ICE buses and freight vehicles. The long-term savings are substantial. Operators can expect annual operational cost reductions of ₹15–20 lakhs per bus, primarily due to no fuel and lower maintenance expenses. Over a decade, this translates to savings exceeding ₹1 crore per bus, effectively offsetting the higher upfront costs.
In addition to monetary savings, electric buses also help operators reduce operational downtime. With fewer moving parts and predictive maintenance capabilities enabled by IoT, electric buses ensure more reliable service and less time off-road, translating to greater fleet productivity and better returns on investment.
Beyond the economic benefits, electric buses contribute significantly to the environment. Each electric bus reduces CO₂ emissions drastically, leading to improved air quality and public health. On a per km-passenger basis, an electric bus like Fresh Bus emits only 0.034 kilograms of CO₂ equivalent, compared to 0.118 kilograms emitted by a diesel bus. This represents a reduction of nearly 71% in emissions. In practical terms, for every 100 kilometers travelled, a Fresh Bus saves approximately 370 kilograms of CO₂ equivalent compared to a diesel bus, underscoring the substantial environmental impact of transitioning to electric mobility.
As urban centers grapple with extreme heat and deteriorating air quality, particularly in peak travel seasons, electric mobility offers a timely response to the health and climate-related challenges posed by traditional diesel vehicles. A shift at scale in intercity transit could have a direct, positive effect on regional emission levels and long-term public health outcomes.
At the heart of India’s shift toward green mobility, the bus industry, particularly electric buses, takes centre stage as the torchbearers of eco-friendly transportation. This transformation is driven by a combination of government incentives and a growing recognition of the need for cleaner transportation options. Sharma is confident that India will lead the way in implementing green mobility solutions.
At Fresh Bus, we are committed to leading this transition. Our all-electric fleet is designed to offer passengers a premium, flight-like experience while ensuring zero-emission travel. By investing in electric mobility, we aim to redefine intercity travel in India, making it cleaner, more efficient, and economically viable.
This means not only offering an elevated passenger experience with modern, tech-enabled buses but also setting new benchmarks in operational standards, safety, and sustainability in public transportation. We believe that comfort and conscience can coexist, and Fresh Bus is built on that very principle.
The path to energy independence and sustainable transportation is clear. Embracing electric buses is not just an environmental imperative but an economic strategy that promises resilience, sustainability, and prosperity for India.
As we look ahead, a large-scale shift to electric mobility in intercity transport can play a pivotal role in India’s journey towards self-reliance, cleaner air, and a greener future.
The author is the Founder & CEO of FreshBus, an EV bus startup platform operating on a full-stack model.
DISCLAIMER: The views expressed are solely of the author and ETTravelWorld.com does not necessarily subscribe to it. ETTravelWorld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.
- Published On Jun 10, 2025 at 05:08 PM IST
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