Asia-Pacific Electric Bus Market Segmented By Propulsion Type (HEV, BEV & PHEV), By Range (Up to 150 Miles, 151-250 Miles, and Above 250 Miles), By Battery Capacity (Up to 100 kWh, 100 kWh - 200 kWh, 201 kWh to 300 kWh & Above 300 kWh), By Application (Intracity, Intercity & Others), By Bus Length (Up to 8m, 8.1-10m, 10.1-12m & Above 12m), By Seating Capacity (Up to 30 Seats, 31-40 Seats & Above 40 Seats), By Country, Competition, Forecast & Opportunities, 2020-2030

Market Overview:

Key Market Drivers 

Government Initiatives and Incentives

To the Asia-Pacific electric bus market, government policies and incentives are the two most important forces that can boost the market. In 2024, many countries in the region sustained in improving policies to increase the usage of EVs especially electric buses in a bid to decrease urban pollution and meet carbon goals. For instance, China has also continued to subsidize New Energy Vehicles (NEV), which heavily cut the initial costs for transit authorities and bus operators. India has also extended its FAME scheme for the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles to provide reasonable subsidies to the agencies of public transportation. The features such as governmental incentives have given the boost to procurement and deployment of electric buses for evolving the market. According to Bloomberg New Energy Finance (BNEF) data cited by Hong Kong’s Environmental Protection Department, the city operates more than 200 electric buses as of 2023, with plans to increase this to 700 units by 2027 through fleet renewal programmes.

Technological Advancements in Battery Technology

New innovations in battery systems have played a significant role in the development of the APAC electric bus market. Thus, starting from 2023 to 2024, there is a trend of batteries with better energy density and higher capacity including lithium-ion and solid-state batteries. They have led to increased driving range, reduced charging times and generally better performance of electric buses. For instance, range anxiety and operation downtime have been solved through the development of fast charging and battery swapping which are well implemented in Japan and South Korean to support electric buses as an option in supporting public transport systems.

Urbanization and Environmental Concerns

The desire for efficient use of energy and concern for rising land use is prompting Asia-Pacific cities to seek for better means of transport. Due to the growing concern of citizens on the impact of air pollution on human health, authorities and urban planners are focusing on the adoption of electric buses. According to Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the country is targeting introducing 1,200 battery electric buses by 2030 in urban fleets as part of its decarbonisation strategy, with early pilots in Tokyo and Osaka.

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Key Market Challenges

High Initial Costs

The main problem of electric buses is that they are expensive to procure them due to the high initial investment even with government support. The adoption of electric buses for procurement in addition to the corresponding recharging equipment is a capital-intensive process. Some emerging economies’ transit authorities, for example, Vietnam and Indonesia, have failed to secure the funding required in 2023 and 2024. However, there is a still a financial hurdle in the type of cost of advanced battery technologies which is reducing gradually. There are attempts to reduce these costs through the public-private partnerships and international funding but programs to minimize the impact of the costs on local governments and operators are yet to be fully implemented.

Infrastructure Development

Another challenge that has been observed to hinder the widespread use of electric buses in the Asia-Pacific region is inadequate charging infrastructure. Most nations do not have the proper framework to accommodate numerous electric buses. For example, rural and suburban regions of the countries like India and Thailand have a great problem in the setting up of charging infrastructure. In 2023 and 2024 different measures have been started to solve this problem, including construction of the fast-charging stations and grids. But, progress in the infrastructure has not advanced in the same manner as the electrification of bus transportation, which affects productivity and reduces the range of movement.

Key Market Trends

Increasing Adoption of Autonomous Electric Buses

The shift toward electric autonomous buses is on the rise in the Asia-Pacific region. Between 2023 and 2024, some pilot projects and trials have been initiated in countries such as China and Japan to incorporate autonomous driving into electric buses. These measures will help to increase the productivity, decrease the number of mistakes, and minimize expenses. The electric buses without drivers and with the use of various sensors and artificial intelligence technologies are being piloted on campuses and even on special bus-only lanes, although their deployment on ordinary city streets is expected in the near future.

Public-Private Partnerships

As for the case of electric buses, PPPs are emerging as key actors in the procurement and implementation of electric buses across the Asia-Pacific. In 2023 and 2024, new partnerships were launched; government agencies, private companies, and financial institutions to advance the electric bus market. These partnerships are mainly in the area of investment in infrastructure, research and development and large scale procurement of electric buses. For instance, partnerships between public transport organizations and private producers are enhancing the development of elaborate charging infrastructure and service centers, which in turn is driving market growth.

Focus on Energy Storage Solutions

Energy storage solutions with electric bus operations is one of the key trends in the Asia-Pacific market. Electric bus in 2023 and 2024 has a trend of using renewable energy sources and energy storage systems for electric bus. Australia for instance is investing into solar-charging stations and battery storage systems to establish fully renewable charging stations. Not only do these energy storage solutions decrease the reliance on the grid but also increase the availability and performance of electric buses, which is a key strategy towards achieving zero-emission public transport.

Segmental Insights

Application Insights

In the Asia-Pacific electric bus market, intracity applications dominate due to strong government initiatives for zero-emission public transport in urban areas, supported by dense city populations and short-range operational needs. Cities in China, India, and Singapore are rapidly replacing diesel fleets with battery-electric models to reduce air pollution and operational costs. Intercity electric buses are gaining traction, particularly in markets like South Korea, Japan, and Australia, where advancements in battery capacity and fast-charging infrastructure are enabling longer routes. This segment is also benefiting from green tourism and regional connectivity programs. Other applications, including airport shuttles, corporate fleets, and school transport, are emerging steadily, driven by sustainability commitments from private operators and government-backed fleet electrification targets.

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Country Insights

China continues to dominate the Asia-Pacific electric bus market, driven by robust government policies and substantial investment in the sector. Urban centers are prioritizing reductions in carbon emissions and improvements in air quality, which has accelerated the adoption of electric buses. According to the International Energy Agency (IEA), China held over 80% of the world’s electric bus stock in 2022, with more than 600,000 units in operation. The country’s leadership influences supply chains, battery sourcing, and pricing trends across the region. In 2024, integration of renewable energy into electric bus services further enhanced sustainability. Incentives, subsidies, and regulatory mandates have facilitated the widespread deployment of electric buses in both urban and suburban areas, solidifying China’s position as the dominant market in the Asia-Pacific region.

India has emerged as the second-largest electric bus market in the region, propelled by government initiatives such as the FAME-II scheme (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles). Focus on reducing urban pollution and improving public transportation has driven adoption in major cities. By early 2024, India’s Ministry of Heavy Industries sanctioned 7,210 electric buses for deployment across various states, spurring demand for charging infrastructure and battery maintenance services. Ongoing pilot projects and investments in charging networks indicate strong growth potential, although high initial investment costs and infrastructure challenges remain key considerations for further expansion. 

Recent Developments

• In February 2025, JBM Auto has secured an order for 1,021 electric buses under India’s PM e-Bus Sewa Scheme-2, valued at about INR 5,500 crore (€605 million). The buses will be deployed in Gujarat, Maharashtra, and Haryana, supported by a Payment Security Mechanism to ensure operator payments. The company showcased new e-buses at Bharat Mobility Global Expo 2025 and plans a European city bus launch in March-April, starting with Germany. With this order, JBM’s total e-bus order book exceeds 11,000 units, backed by its Delhi-NCR plant capable of producing 20,000 electric buses annually.
• New generation of electric buses was launched by BYD in China in 2023 packed with new battery technologies as well as improved power density. These new models signified improvements in the areas of driving range as well as regenerative brake and charging system that are suitable for transit fleet that operate in the urban city. Besides, this kind of development also let BYD to enhance its battery production for buses which met the fast-growing market require in Asia-Pacific region. 
• In 2023, the electric school bus model by Nissan, has been launched in Japan. The new form of transport has less risks for the students, friendly on the environment and has more security measures. This new launch equally presents Nissan the opportunity to capture the electric school bus market, thus, aligning it to offer environmentally friendly transport solutions and will have battery life which will last longer.
• In India, JBM Auto kick started the new year by unveiling their new model of electric bus called Ecolife in the early part of the year 2023. This bus is modern for where it has a better battery system, better design for intercity and urban routes. electric bus also received governmental approval under India ‘s FAME II the scheme promoting electric vehicles.

Key Market Players

• BYD Motors, Inc
• Tata Motors Ltd
• Zhongtong Bus Holding Co., Ltd.
• Xiamen King Long United Automotive Industry Co., Ltd
• AB Volvo
• Anhui Ankai Automobile Co., Ltd
• Ashok Leyland Limited
• Scania CV AB
• YUTONG Bus Co., Ltd
• Proterra Inc.

Report Scope:

In this report, the Asia-Pacific Electric Bus Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Electric Bus Market, By Application:   

o   Intracity

o   Intercity

o   Others

• Electric Bus Market, By Propulsion Type:  

o   HEV

o   BEV

o   PHEV

• Electric Bus Market, By Seating Capacity:  

o   Up to 30 seats

o   31-50 seats

o   More than 50 seats

• Electric Bus Market, By Bus Length:  

o   Up to 8 m

o   8 m to 10 m

o   10 m – 12 m

o   Above 12 m

• Electric Bus Market, By Range:  

o   Up to 150 Miles

o   151-250 Miles

o   Above 250 Miles

• Electric Bus Market, By Battery Capacity:  

o   Up to 100 kWh

o   100 kWh - 200 kWh

o   201 kWh to 300 kWh

o   Above 300 kWh

• Electric Bus Market, By Country:  

o   China

o   India

o   Japan

o   Indonesia

o   Thailand

o   South Korea

o   Australia

o   Rest of Asia-Pacific

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Asia-Pacific Electric Bus Market.

Available Customizations:

Asia-Pacific Electric Bus Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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