With 9000 eBus Orders, Olectra to Double its Production Capacity by 2024
Driven by a substantial order of 9,000 buses, Olectra to double its production capacity to 2,500-3,000 buses annually. The company aims to produce around 5,000 vehicles annually in total.
Olectra Greentech, a leading electric bus manufacturer in India, has outlined ambitious plans to double its annual production capacity from 1,250 buses to an impressive 2,500-3,000 buses.
This expansion will also include the manufacturing of electric tippers, with the total production estimated to range from 4,000 to 5,000.
Chairman and Managing Director KV Pradeep disclosed that the company already boasts an order book of 9,000 buses.
“Initially, our goal was to deliver 1200 buses by 2024. Currently, we are on track to meet this target, with plans to deliver all the orders secured within the next 24-30 months,” stated Pradeep in an interview.
The company recently made headlines with its landmark achievement of securing India’s largest e-bus order from the Maharashtra State Road Transport Corporation (MSRTC) – a contract for 5,150 buses valued at over Rs 10,000 crores.
This triumph has propelled Olectra Greentech’s stock value to more than double in the last six months.
To meet its heightened production goals, Olectra to double its production capacity by establishing new facilities that will elevate its total output to 5,000 units annually.
Their manufacturing plant in Hyderabad already has a capacity of over 1,500 electric buses per year. Additional manufacturing plants are being planned in Himachal Pradesh and North India.
By 2024, they anticipate an overall manufacturing capacity of 5,000 electric buses annually.
In May 2022, Olectra Greentech entered into an agreement with the Assam State Government to supply 100 electric buses, slated for deployment in Guwahati over the next few months.
This initiative aligns with the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme promoted by the Indian government.
Price of Olectra Greentech Electric Bus
But despite progress, pricing remains a challenge.
The company currently imports the majority of its components, with batteries being the costliest.
Pradeep noted that batteries account for around 40% of the cost, and in accordance with Indian government directives, they aim to localize 50% of the remaining 60% of components.
“The battery alone accounts for approximately 40% of the total cost. Out of the remaining 60%, 50% must be localized as per Indian government directives. Olectra already procures 60% of its non-battery components from India,” says Pradeep.
As for the price, KV Pradeep mentioned that an Olectra Greentech electric bus can range in cost from Rs 1.25 crores to Rs 2.5 crores.
Plans for Funding
In terms of funding, the board has given a green signal to Rs 800 crores of fundraising, with the promoters contributing Rs 400 crores.
The remaining sum will be open to banks and financial institutions for funding.
Pradeep stated that several institutions have expressed interest, with final decisions expected in the next three months.
Regarding reports of entering the passenger vehicle segment, Pradeep indicated that this would likely not occur under the listed entity.
Additionally, Olectra Greentech is set to establish an extensive charging infrastructure across India, with plans for over 1,500 electric bus charging stations in multiple cities.
They’ve partnered with various urban transport agencies to offer comprehensive electric mobility solutions encompassing vehicles, charging infrastructure, and maintenance.
