Olectra’s Roadmap | Deepening E-Bus Leadership and Building E-Truck Portfolio

In Aug 2026, Olectra became the first Indian OEM to deploy 4,000 Electric Buses. Mahesh Babu, Managing Director of Olectra Greentech, discusses what it will take to scale to the next phase of growth and building trucks as a second pillar of growth for the company.

What’s the realistic timeline for Olectra to reach 8,000 EV deliveries, and what needs to go right to get there?

Crossing 4,000 electric buses is an important milestone for Olectra, but we see it as a starting point for the next phase of growth. We believe reaching 8,000 buses is achievable over the next 18 to 24 months, subject to market absorption and execution.

The key is not just manufacturing capacity. It is also about external factors such as timely depot and charging infrastructure readiness, stable supply chains, and consistent customer execution.

Our manufacturing facility currently has a capacity of 2,500 vehicles per shift and can scale up to around 5,000 vehicles with two shifts. We are therefore building capacity ahead of demand, while remaining disciplined about scaling production in line with actual market requirements.

You flagged shipping availability and rising polymer/crude oil derivative costs as key supply-side challenges. Have these pressures eased, and can they affect your delivery timelines for this FY?

The supply chain environment has improved in some areas, but it is not completely normal yet.

Geopolitical disruptions have affected shipping availability, while materials such as plastics, resins and polymers continue to see supply and cost pressures because of their linkage to crude oil and fuel derivatives.

We have been actively working with suppliers, increasing localisation and strengthening our supply chain to reduce these risks. Our FY27 plan is to deliver around 2,500 vehicles, with quarter-on-quarter production growth. We are confident in our manufacturing capability, although external factors such as geopolitics, shipping and component availability remain variables that we continue to monitor closely.

Please detail Olectra’s current manufacturing footprint and the new upcoming plant—including an estimated start timeline and the capacity it will add.

Our key electric vehicle manufacturing hub is the 150-acre greenfield facility at Seetharampur, Hyderabad. Phase I became commercially operational on December 31, 2025, with an annual capacity of 2,500 electric buses on a single shift. With two shifts, the facility can operate around 5,000 vehicles annually and can scale further as the market grows.

In parallel, we are setting up a dedicated manufacturing facility for electric trucks with an annual capacity of around 2,500 vehicles. The project is already underway and is expected to become operational within ~12 months. It will support our next generation of heavy electric commercial vehicles, including our own truck platform.

The broader manufacturing strategy is to create an integrated ecosystem covering electric buses, trucks, battery pack assembly and localisation of critical components.

Over the next two years, we have indicated an investment of around ₹450 crore towards new product development. This is not limited to one technology. It will support new bus platforms, trucks, battery systems, software and associated testing and engineering capabilities.

What would you point to as Olectra’s most meaningful contribution to localisation and domestic manufacturing so far?

Our most meaningful contribution to localization is the development of our next-generation vehicle platforms across both electric buses and trucks. These platforms are being designed with a strong focus on domestic manufacturing and localization. Except for battery cells, we expect all major components and systems to be completely localized.

Our new manufacturing facility will play a key role in building these next-generation platforms at scale. This will not only strengthen our domestic manufacturing capabilities but also help develop a deeper local supplier ecosystem and reduce dependence on imports over time.

The next major step is battery localisation. Battery cells and certain battery technologies remain globally concentrated, but we are working towards local battery pack assembly and deeper localisation of the vehicle architecture. Our objective is to take localisation beyond the current level and create a more resilient domestic EV value chain.

Beyond the 9-meter, 12-meter buses and truck platforms, what new products are currently in the pipeline? How serious is the consideration of exploring LMVs and adjacent segments?

Our immediate focus remains on buses and heavy commercial vehicles. We are developing next generation 9 metre and 12 metre bus platforms, along with our own electric truck platform. The next generation bus platform is expected to be launched in Q3 FY27, while our own truck platform is targeted for launch in Q4 FY27. We are also working on an electric truck platform, which is currently at various stages of development and testing.

As far as LMVs are concerned, we are evaluating the opportunity, but it is not an immediate strategic priority for Olectra. Our near-term focus is on segments where we have a strong understanding of customers, operating conditions and the commercial vehicle ecosystem. We would enter adjacent categories only where we see a clear opportunity and where we can bring a differentiated product to the market

Where do you see Olectra’s biggest opportunity over the next 3-5 years —deepening in buses and trucks domestically, new vehicle categories, or export?

Our biggest opportunity over the next three to five years is to build a strong electric commercial vehicle portfolio, led by buses and heavy commercial trucks. We see significant headroom for electrification across both public transportation and freight.

Our growth priorities are clear: deepen our leadership in buses, build trucks as our second growth pillar, expand selectively into adjacent categories, and focus our presence in international markets.

Buses will remain a core growth engine, while electric trucks will be an important second growth pillar. At the same time, we are evaluating adjacent categories selectively and looking at international markets as an important part of our growth strategy.

This interview was first published in EVreporter Sep 2026 magazine.

Also read: India’s electric bus market can reach 8,000 units in FY26-27: Mahesh Babu, MD, Olectra Greentech