China Electric Bus Market Size

China Electric Bus Market Analysis

The China Electric Bus Market size is estimated at USD 36.79 billion in 2024, and is expected to reach USD 91.30 billion by 2029, growing at a CAGR of 19.94% during the forecast period (2024-2029).

• At the beginning of 2020, the automotive goods and supply chain market were drastically impacted by COVID-19. Also, travel restrictions and lockdowns resulted in a slowdown in electric vehicle sales. However, the automotive industry is now recovering from the losses and paving the way to introduce quality products to cater to the rising demand from consumers across the country. The automotive industry witnessed significant growth in terms of the production of electric buses in 2022, which is likely to increase the demand for electric buses during the forecast period.
• Over the medium term, Governments across nations-initiated changes in the public transportation systems by committing to electrify their bus fleets. Robust government support in the form of subsidies is helping bring the total cost of an electric bus below that of a similar diesel variant, resulting in increased adoption of electric buses across the country.
• Fuel constitutes a major part of the operating cost of any vehicle. With the increasing costs of fuel, using an electric bus for public transport reduces not only the fuel cost but also other upfront costs and the total cost of ownership. By 2030, the prices for electric buses are expected to come down to that of diesel fuel buses. Electric buses help reduce 81-83% of the maintenance and operating costs compared to a diesel-engine bus.
• The rise in general awareness about air pollution, climate change, and, most importantly, the increasing diesel prices over the years are some of the reasons that incentivize most state and city transport authorities to increasingly accommodate clean public transport solutions in their regional development plans. Electric buses offer more comfort to travelers compared to gasoline or diesel buses. The noise vibration and harshness (NVH) levels in electric buses are minimal, unlike traditional diesel buses, providing enhanced passenger comfort.
• Growing electric vehicle charging infrastructure across the country is likely to witness significant demand for electric buses across the major regions. The rapid expansion of electric bus manufacturers across the country is likely to propel the market during the forecast period.