Battery replacement strategy key to e-bus operational feasibility

Chartered Speed, a bus passenger mobility company operating in the B2G, B2B, and B2C sectors with a fleet of over 1800 buses across Gujarat, Madhya Pradesh, Odisha, and Assam, was recently awarded the contract to operate 900 electric buses by CESL. The company will operate these buses under the PM e-Bus Sewa Scheme across 13 cities in three states. Our team connected with Sanyam Gandhi, Whole-Time Director of Chartered Speed, to discuss this development.

What is the current size of your e-bus fleet, and where do these buses operate?

Chartered Speed currently operates a growing fleet of 56 electric buses deployed across various cities. These e-buses primarily operate on intracity routes in cities like Indore and Ahmedabad, serving thousands of commuters daily.

Additionally, we are in the process of deploying 900 more electric buses under the PM E-Bus Sewa Scheme, a government initiative aimed at expanding electric mobility in India. This expansion will significantly enhance the company’s presence in both B2G (Business-to-Government) and B2B (Business-to-Business) segments, allowing for greater adoption of e-buses in urban transit networks and corporate transport solutions.

You have a sizable amount of ICE buses in your fleet. As a fleet operator, what are your reasons for transitioning to e-buses?

The transition from Internal Combustion Engine (ICE) buses to electric buses is driven by a combination of environmental, economic, and regulatory factors. Chartered Speed recognizes the long-term benefits of adopting electric mobility and is proactively shifting towards e-buses for the following key reasons:

• Sustainability Goals: Chartered Speed is committed to reducing its carbon footprint and contributing to a cleaner environment. With transport being one of the largest contributors to air pollution and carbon emissions, transitioning to electric buses can play a crucial role in reducing fossil fuel dependence and mitigating climate change.

• Reduction in Forex Outflows & Energy Independence: India imports a significant portion of its crude oil, leading to high foreign exchange (FOREX) outflows. India has the potential to generate surplus electricity, particularly through renewable sources like solar, wind, and hydro. With advancements in energy storage and grid management, the country can leverage clean energy to power its transport sector.

• Customer comfort: For us, passenger experience is a key priority. E-buses provide a superior travel experience with no engine noise or vibrations, ensuring a more comfortable journey.

While ICE buses will continue to be part of the fleet for specific operational needs, Chartered Speed is progressively expanding its investment in e-buses, ensuring a transition toward e-mobility.

What challenges do you currently find in operating electric buses?

While electric buses present significant advantages, their large-scale deployment comes with operational and infrastructure-related challenges that need to be addressed:

• A robust network of chargers is crucial for seamless e-bus operations. However, we are implementing captive chargers for our buses to manage the fleet efficiently.

• Unlike diesel buses that can refuel quickly, e-buses require well-planned charging cycles. Optimizing routes to maximize battery efficiency while maintaining a high level of service reliability is a challenge that requires advanced route planning and data-driven scheduling.

Battery degradation over time impacts overall fleet efficiency. Planning for battery replacement and recycling is crucial for long-term operational feasibility. Battery management strategies, including second-life applications and recycling ecosystems, need further development.

At what utilization level do e-buses make financial sense compared to diesel buses?

E-buses achieve cost parity with diesel buses when operated at high utilization levels, typically around 200 km per day or more. However, the financial viability depends on several key factors.

• Lower electricity rates and access to subsidized charging infrastructure enhance cost-effectiveness, making energy expenses more predictable and stable.

• Route conditions also play a crucial role, as flat urban routes with shorter distances between stops allow for efficient energy regeneration through regenerative braking, further improving operational efficiency.

• Additionally, government subsidies and financial incentives significantly reduce the initial investment burden and shorten the break-even period.

• Maintenance and battery costs, particularly battery efficiency and long-term replacement strategies, also impact the overall economics of running an e-bus fleet.

To ensure financial sustainability, fleet operators must focus on maximizing utilization through optimized scheduling, smart charging strategies, and deployment on high-traffic routes, making electric buses a viable long-term investment.

Can you comment on the current policy scenario for e-buses and if you have any recommendations for policymakers?

The current policy framework for e-buses has been instrumental in driving adoption. However, to accelerate large-scale electrification, certain areas require further support:

• Need for Clear Regulations on Transitioning Stage Carriage Buses to Electric: India has made significant progress in promoting electric mobility through various policies and incentives. However, establishing a clear and structured regulatory roadmap for the electrification of stage carriage buses (city and intercity public transport) can further accelerate this transition. For example, a few city authorities still require permits for EV buses. Simplifying this will encourage investments in e-mobility and ensure a smooth shift to sustainable public transport.

• Encouraging Innovative Financing Models: The government’s incentives have played a crucial role in driving electric bus adoption. Expanding public-private partnerships (PPPs) can further accelerate large-scale deployment.

At Chartered Speed, we remain committed to working alongside policymakers, industry stakeholders, and government bodies to make e-mobility a scalable and sustainable solution.

Also read: Government approves PM e-Bus Sewa PSM scheme for e-buses