We don't need no private cars

E-buses could become cheaper than conventional ones by 2025 on a total-cost-of-ownership basis

That Tesla is “unwelcome” in Singapore is old news. Elon Musk, the company’s CEO, tweeted about it earlier this year. The government elaborated on the reasons last month.

“What Elon Musk wants to produce is a lifestyle. We are not interested in a lifestyle. We are interested in proper solutions that will address climate problems,” Masagos Zulkifli, Singapore minister for environment and water resources, said in an interview to Bloomberg News. Singapore is expanding its public transport system further while keeping a lid on the number of private cars on its roads. 

Public transport that is electric — with the electricity preferably being generated via renewable energy — would be one of the better options for city commutes. India is moving towards that. 

The government approved the purchase of about 5,600 electric buses across 64 cities last month, with funding support, if they meet the “required localisation level and technical eligibility”. The states of Maharashtra (725 e-buses), Uttar Pradesh (600 e-buses) and Gujarat (550 e-buses) got the largest approvals.

As battery prices decline, electric buses will get cheaper. In India, BloombergNEF expects e-buses to be cheaper than conventional ones by 2025 on a total-cost-of-ownership basis — which would include the upfront cost as well as the running cost. That would pave the way for India to become the world’s second largest e-bus market, after China.

 

Meanwhile, commitments to all-electric municipal bus fleets are becoming more common globally. Taiwan’s government approved a subsidy last month to support the transition to a fully electric fleet by 2030. Chile wants 80 per cent of its municipal fleet to be electric by 2022, and 100 per cent by 2040. In Canada, Toronto, Montreal and now British Columbia target 100 per cent electric buses by 2040. California is also committed to a zero-emission municipal fleet.

Shenzhen in China has already transitioned to a 100 per cent electric fleet.

Almost 30 cities have committed to procure only zero-emission buses after January 1, 2025, under the C40 Green and Healthy Streets Declaration. These include London, Paris, Cape Town, Auckland, Milan, Mexico City, Rio de Janeiro and Rome.

Charging infrastructure to support these fleets is springing up. Indianapolis will soon have ‘wireless’ charging for buses from BYD with chargers from Pennsylvania’s Momentum Dynamics. 

Delhi Metro got the government’s nod — and support — for 100 electric buses for last-mile connectivity. The company gets over half of its daytime power from solar energy, thanks to its contract with the 750 megawatts Rewa Ultra Mega Solar Plant in Madhya Pradesh. 

Taxis are also gradually going electric. Energy Efficiency Services Ltd., which had finalised the purchase of 10,000 electric cars for government use, is now offering those e-vehicles to cab companies like Ola and Meru, as demand from government departments has been muted so far. The government’s incentive scheme (FAME) is also tilted towards support for electric public transport.

The U.K., which has pledged to reduce net carbon emissions to zero by 2050, announced financial backing for, among other things, flying urban taxis. Uber Elevate is working on aerial ridesharing, with demonstrator flights for air taxis planned next year, and commercial flights by 2023. Until they become a reality, electric buses and cabs will have to do.

The author is editor, Global Policy for BloombergNEF, vgombar@bloomberg.net