Tata Motors and Other Stocks Likely to Benefit from PM-eBus Sewa Scheme to Deploy 10,000 EV Buses

Synopsis: The PM-eBus Sewa scheme aims to deploy 10,000 electric buses by 2027, expanding to 35,000 later, benefiting companies like JBM Auto, Tata Motors, Olectra, and three more through manufacturing, components, and battery supply.

The Indian government is accelerating green urban mobility through the PM-eBus Sewa scheme, targeting widespread adoption of electric buses across tier-2 and tier-3 cities. This initiative aims to modernise public transport while tackling urban pollution.

By promoting large-scale deployment under a Public-Private Partnership model, the scheme creates opportunities for manufacturers, component suppliers, and battery producers. Companies in the EV ecosystem are set to benefit from growing government orders and infrastructure expansion.

Deployment of 10,000 E-Buses by 2027

Under the initial phase of the PM e-Bus Sewa scheme, the government aims to deploy 10,000 air-conditioned electric buses across 116 cities in 26 states and Union Territories. 

The rollout is specifically targeted at tier-2 and tier-3 cities with populations between 3 lakh and 40 lakh, where state governments have historically struggled with the high financing costs of electric vehicles. As of early 2026, agreements for 6,500 buses have already been signed, with a small initial tranche of 225 buses already delivered.

Expansion to 35,000 Additional Units

Union Housing and Urban Affairs Minister Manohar Lal announced that once the first 10,000 buses are operational in 2027, a second phase will be launched. This follow-up scheme is expected to supply an additional 35,000 e-buses to various states. This massive expansion is intended to further combat rising pollution levels and ensure that the benefits of green mobility reach a wider range of urban centers across the country.

Implementation and the PPP Model 

The scheme operates on a Public-Private Partnership (PPP) model. To ensure financial stability for private operators, the government has introduced a Payment Security Mechanism (PSM), which acts as a safeguard for states that participate. Furthermore, to include smaller towns that don’t meet the individual population criteria, the government is creating clusters of twin cities and nearby towns to allow them to pool resources and qualify for the e-bus benefits. 

Beyond just providing vehicles, the government is focusing on the user experience by introducing the Sahaj ticket and the National Common Mobility Card. These tools will allow passengers to use a single payment method across e-buses and other modes of transport, such as metros. This integrated approach is designed to make public transit more seamless and accessible for commuters in smaller Indian cities. Stocks that could benefit from this scheme 

JBM Auto Ltd

JBM Auto is likely to gain significantly from large government orders for e-buses under the scheme. Their expertise in turnkey deployment solutions positions them to secure contracts for manufacturing, assembling, and delivering these electric buses across multiple cities. With a market capitalisation of Rs. 13,314 cr, the shares of JBM Auto Ltd closed at Rs. 563 per share, increasing from its previous close of Rs. 540.35 per share.  

Tata Motors Ltd

Tata Motors stands to benefit due to its strong foothold in the electric bus segment and existing partnerships with government transport authorities. The scheme offers opportunities to supply a large fleet of e-buses, boosting sales and reinforcing their presence in public transport electrification.

With a market capitalisation of Rs. 1,52,908 cr, the shares of Tata Motors Ltd closed at Rs. 415.25 per share, increasing from its previous close of Rs. 394.95 per share.  

Olectra Greentech Ltd

As a key e-bus manufacturer, Olectra Greentech can expand its order book through the deployment of 10,000 buses in the first phase and potentially more in the future. Their specialization in electric public transport makes them a direct beneficiary of the government’s push for green mobility.

With a market capitalisation of Rs. 8,745.29 cr, the shares of Olectra Greentech Ltd closed at Rs. 1065.45 per share, increasing from its previous close of Rs. 1024.40 per share.  

Ashok Leyland Ltd

With an expanding portfolio of electric buses, Ashok Leyland is positioned to compete for government tenders under the scheme. Increased deployment of e-buses provides revenue growth and strengthens their presence in India’s EV bus market.

With a market capitalisation of Rs. 98,445.80 cr, the shares of Ashok Leyland Ltd closed at Rs. 167.60 per share, increasing from its previous close of Rs. 161.95 per share.  

Amara Raja Energy & Mobility Ltd

The rollout of thousands of e-buses will drive demand for lithium-ion batteries. Amara Raja, as a supplier of these energy solutions, stands to benefit from the rising need for high-capacity, reliable batteries for public transport fleets.

With a market capitalisation of Rs. 13,360.85 cr, the shares of Amara Raja Energy & Mobility Ltd closed at Rs. 727.15 per share, increasing from its previous close of Rs. 727.05 per share.  

Sona BLW Precision Forgings Ltd

Sona BLW can benefit indirectly as a supplier of EV drivetrain components, which are crucial for electric buses. Increased production of e-buses will likely boost orders for their components, supporting revenue growth in the EV segment.

With a market capitalisation of Rs. 30,719.24 cr, the shares of Sona BLW Precision Forgings Ltd closed at Rs. 494.05 per share, increasing from its previous close of Rs. 485.10 per share.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Tata Motors and Other Stocks Likely to Benefit from PM-eBus Sewa Scheme to Deploy 10,000 EV Buses appeared first on Trade Brains.