Shares of electric vehicle manufacturers JBM Auto and Olectra Greentech surged significantly on April 16, 2025, following reports of a major government initiative to procure electric buses. JBM Auto's shares jumped as much as 12.73%, reaching an intra-day high of ₹704.60, while Olectra Greentech saw an increase of 8.1%, peaking at ₹1,274.60. This surge in stock prices reflects investor optimism regarding the upcoming tender for 10,000 electric buses under the PM E-DRIVE scheme.
The Ministry of Heavy Industries is set to launch this tender in May 2025, marking a pivotal step in India's push towards electric mobility. Convergence Energy Services Limited (CESL), a subsidiary of Energy Efficiency Services Limited (EESL), will oversee the tendering process aimed at selecting intra-city electric bus operators across nine major cities: Bengaluru, Chennai, Hyderabad, Pune, Mumbai, Surat, Ahmedabad, New Delhi, and Kolkata.
According to reports, the government plans to extend a substantial subsidy of approximately ₹3,000 crore for the procurement of these buses, with the maximum subsidy capped at ₹35 lakh per electric bus. This initiative is part of a broader effort to reduce carbon emissions from public transport and promote sustainable urban mobility.
JBM Auto, a leading manufacturer in the electric bus sector, has been actively involved in producing zero-emission buses. The company has a market capitalization of ₹16,420.98 crore as of April 16, 2025, and its shares have shown remarkable resilience, climbing 84% over the past two years despite a 20% decline over the last year. The stock's recent performance indicates a bullish trend, supported by a significant increase in trading volume.
"JBM Auto share price is breaking out of a 30-session bullish flag formation, backed by a massive 1100% surge in volume compared to the 50-day average — a clear sign of strong institutional accumulation," noted Anshul Jain, Head of Research at Lakshmishree Investment and Securities. Jain added that a sustained move above ₹690 would confirm the breakout and could lead to a rally towards the weekly swing high of ₹800.
Meanwhile, Olectra Greentech, which specializes in electric buses and charging infrastructure, has also positioned itself as a key player in the market. With a market capitalization of ₹10,235.47 crore, the company has been at the forefront of electric bus manufacturing in India. The recent surge in its stock price is attributed to positive market sentiment following the government’s announcement.
In February 2025, Olectra secured a landmark order for 297 non-air conditioned 9-meter electric buses from Himachal Road Transport Corporation, further solidifying its presence in the electric bus segment. The company is also expected to benefit from the upcoming tender, along with other industry players such as Tata Motors and Ashok Leyland.
Tata Motors, a major player in the electric vehicle market, is actively expanding its EV portfolio, including electric buses. The company's shares rose by 0.9% to ₹627.70 on April 16, 2025, reflecting investor confidence in its growth prospects. Tata Motors has a market capitalization of ₹2,26,899.93 crore.
Ashok Leyland, another significant manufacturer in the commercial vehicle sector, has entered the electric bus market with a range of eco-friendly options. The company’s shares also saw a slight increase, trading at ₹215.20, indicating its commitment to sustainable public transportation solutions.
The Nifty Auto Index, despite a slight decline of 0.83% on the same day, has seen a 10% increase over the last five sessions, indicating a growing interest in the electric vehicle sector. Investors are closely watching these developments as the government’s tender for electric buses is expected to open up major opportunities for manufacturers.
"The PM E-DRIVE scheme, launched in September 2024, has a budget allocation of ₹10,900 crore, which will remain valid until March 2026," stated a source familiar with the initiative. This funding is crucial for supporting the procurement and deployment of electric buses in urban areas, aligning with India's goals for sustainable transportation.
Market analysts believe that the tender will not only benefit established players like JBM Auto and Olectra Greentech but also encourage new entrants into the electric vehicle market. The anticipated demand for electric buses is likely to stimulate innovation and competition, ultimately benefiting consumers and the environment.
As the tender date approaches, stakeholders in the electric vehicle industry are preparing for what could be a transformative moment for public transportation in India. The government's commitment to subsidizing electric buses reflects a strategic move towards a greener future, and the market's positive response underscores the potential for significant growth in the electric mobility sector.
In summary, the forthcoming tender for 10,000 electric buses under the PM E-DRIVE initiative has energized the stock market, particularly for JBM Auto and Olectra Greentech. With substantial government support and a growing commitment to sustainable transportation, the electric vehicle landscape in India is poised for substantial growth.
