Electric buses (e-buses) are expected to account for 11-13% of new bus sales by FY25, according to a report by credit rating agency ICRA. E-bus volumes and penetration levels have improved consistently to 7 per cent in FY23. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) plan has been steady progress towards achieving e-bus deployment targets, with capital subsidies of Rs. 35-55 lakh per bus potentially funding up to 40% of the project costs.