Olectra Greentech, JBM Auto, Ashok Leyland: Electric bus manufacturers' stocks rally up to 9%; what is the trigger?

This will be done under the PM-eBus Sewa Scheme, and a new scheme would be launched thereafter to provide another 35,000 e-buses.

Replying to supplementary queries during Question Hour, Minister of Housing and Urban Affairs Manohar Lal said Prime Minister Narendra Modi had, on August 16, 2023, announced the PM e-Bus Sewa scheme to provide mobility in smaller cities and tackle rising pollution.

Since states were unable to provide adequate finance for e-buses, a target of a total of 10,000 buses was put under the PM e-Bus Sewa scheme for towns with a population between 3 lakh and 40 lakh, he said.

The minister said states were told to give their demands, and a selection criterion was laid down, and buses were sanctioned on the recommendations of coordination committees.

"Out of 178 cities eligible, 116 cities participated, and they were allotted buses accordingly. Only four cities qualified under the scheme in Bihar, where 400 buses have been sanctioned. While 150 buses have been sanctioned for Patna, 50 buses each have been sanctioned for the cities of Bhagalpur, Darbhanga, Gaya, Muzaffarpur, and Purnea," the minister said.

The minister, however, said that the scheme is being delayed in Bihar, as coordination committees in this regard have not been set up by the state government.

"The second scheme of 35,000 more buses will come soon, and cities have to apply under the scheme accordingly. We want to provide the benefit of this scheme to more and more cities and help states, as this also helps reduce pollution," the housing and urban affairs minister told members.

The minister said a tranche of 225 buses were delivered last month, and tenders have been selected, and agreements for 6,500 buses have been done, and more buses will be delivered to states as soon as they finalise agreements.

"The first tranche of 10,000 buses under the scheme will be completed by the end of 2027, and after that, the next scheme will be started. The impact of this scheme would help in saving money and time for people and improve the environment," Manohar Lal said.

How individual stocks were performing on Tuesday

At the time of writing this article, shares of Olectra Greentech rallied as much as 8.75% to ₹1,113.60 apiece on the NSE. JBM Auto shares advanced as much as 6.34% to ₹575, while Ashok Leyland shares surged 2.92% to ₹166.72 on the NSE.

About Olectra Greentech

Olectra Greentech Limited (OGL) is a prominent name in the manufacturing of pure electric buses, with production facilities located in Hyderabad. It is a subsidiary of the MEIL Group. Olectra has produced and deployed all types of electric buses across the country. The company was incorporated in 1992.

The company is primarily engaged in manufacturing composite polymer insulators and electric buses. Building on its success in the commercial electric bus sector, the company later broadened its product range to include 3-wheeler electric autos and electric trucks within the e-mobility segment.

About JBM Auto

Established in 1983, JBM Auto Ltd is a prominent name in the automotive industry, specialising in the manufacturing and sale of sheet metal components, tools, moulds, and buses.

The company has diversified into different business segments like auto components and systems, buses, electric vehicles (EVs), EV aggregates, EV charging infrastructure, and renewables.

The company also offers environmental management services under its subsidiary JBM Environment Management Private Limited. This vertical of the company offers waste management services and sustainability solutions in different cities across India.

JBM Auto is a part of the $2.6 billion global conglomerate JBM Group. The group is a leading multinational in the automotive and EV industry globally, with operations spread across 25 locations in 10 countries.

Ashok Leyland

Ashok Leyland, part of the Hinduja Group, is also one of the key names in Indian electric mobility, having launched India’s first indigenous electric bus (Circuit series) in 2016. Through its subsidiary Switch Mobility, it focuses on sustainable, zero-emission transport, producing electric buses with over 50 million kilometres covered. They operate via a "Design in India" philosophy, offering advanced battery-swappable technology and hydrogen fuel cell electric buses.