🛠️ A century in the making
Electric buses may seem like a modern innovation, but their history dates back more than a century. In 1907, London launched the world's first electric bus service, operating between Victoria Station and Liverpool Street. Despite this early promise, internal combustion engines dominated the transport landscape throughout the 20th century due to their power, range, and fuel availability.
Now, thanks to rapid advancements in battery technology, rising fuel costs, and urgent climate policy, electric buses are experiencing a powerful resurgence. Cities around the world are investing in BEV (battery electric vehicle) fleets to reduce air pollution, cut long-term operating costs, and align with decarbonization targets. This transformation is already well underway in China, gaining speed in Europe and India, and steadily emerging in North America, Latin America, and Africa—each region bringing its own pace and model of change.
⚡ The case for transitioning to BEVs
Lower operating costs: Electric buses offer significant savings in fuel and maintenance. Studies indicate that battery-electric buses can cost 50% less per mile to maintain, compared to diesel buses.
Environmental benefits: BEVs produce zero tailpipe emissions, contributing to improved air quality and reduced greenhouse gas emissions in urban areas.
Energy efficiency: Electric buses convert over 85% of electrical energy into motion, compared to about 20% for diesel engines, making them more energy-efficient.
Government incentives: Many governments offer subsidies and incentives for electric bus adoption, reducing the financial burden on transit agencies.
🚍 Key players in the electric bus market
DATAportl’s has identified almost 20 bus manufacturers (brands) from around the globe. Some of these include (in alphabetical order):
Basigo (Kenya)
BYD (China)
Higer Bus (China)
MAN (Germany)
PhoenixEV (USA)
Solaris (Spain)
Tata Motors (India)
Wrightbus (UK)
Yutong (China)
🌍 Regional trends in electrification
Most, if not all, countries are moving toward the electrification of bus transportation, motivated by operational cost savings, emission reduction goals, and increasingly favorable government policies. However, the pace and structure of adoption vary significantly by region, reflecting different governance models, market maturity, and local priorities.
China continues to lead globally in electric bus deployment. This transformation has been largely driven by centralized government planning and policy mandates. National programs, such as the “Blue Sky” initiative, have provided substantial subsidies and infrastructure investment, allowing for rapid, uniform deployment across hundreds of cities. As a result, China accounts for well over 90% of the world’s BEV bus stock, with entire fleets in cities like Shenzhen already fully electrified.
Europe, in contrast, takes a more decentralized approach. Decisions to adopt electric buses are typically made at the municipal or regional level, often by transit agencies or operators such as Transport for London or Qbuzz in the Netherlands. This leads to a more fragmented rollout, though supported by EU-level incentives like the Clean Vehicles Directive. Countries like the Netherlands, Norway, and the UK are emerging as leaders in terms of per capita adoption, with strong political will and funding (e.g., the UK's ZEBRA scheme) accelerating progress.
India is rapidly catching up, but the model is hybrid. Central government schemes such as FAME II provide financial incentives and policy direction, while state transport undertakings (STUs) and private operators execute procurement. Adoption is particularly aggressive in large cities such as Delhi, Mumbai, and Bengaluru, often through lease models to manage upfront costs. Domestic manufacturers like Tata and Olectra are playing a key role.
Southeast Asia presents a mixed picture. Countries like Singapore are moving decisively with centralized procurement by agencies like the Land Transport Authority (LTA), often sourcing buses from global players like BYD. In contrast, other nations in the region remain in pilot stages, citing infrastructure and financing constraints.
North America is progressing at a slower, more cautious pace. In the United States, adoption is highly localized, with individual cities or states (notably California and New York) leading the charge through grants and fleet mandates. The absence of a unified national policy and a fragmented transit landscape has slowed broader adoption. In Canada, cities like Toronto and Vancouver are more advanced, supported by federal sustainability funds.
South America offers an interesting contrast. Countries like Chile and Colombia have become regional leaders, implementing progressive policies and building out public-private partnerships to fund infrastructure. Santiago, for instance, now boasts one of the largest electric bus fleets outside of China. However, other countries in the region lag behind due to economic constraints and limited energy grid readiness.
Africa is still in the early stages, but momentum is growing. Countries like South Africa and Kenya are beginning to pilot BEV buses, often with support from international financing institutions or partnerships with Chinese manufacturers like BYD. The adoption here is shaped more by external investment and energy policy reforms than domestic manufacturing capacity.
🧠 Strategic takeaway
The transition from ICE to BEV buses is not just a technological shift but a strategic imperative for sustainable urban development. Lower operating costs, environmental benefits, and supportive government policies are accelerating this change. Transit agencies and manufacturers that adapt swiftly to this new landscape will be better positioned to meet the demands of modern, eco-conscious cities.