Indian EV manufacturer expands beyond buses with plans for high-tonnage electric trucks while boosting annual production capacity to 10,000 units.
26 Feb 2025 | 9720 Views | By Shahkar Abidi
Olectra Greentech Ltd, a leading electric vehicle (EV) manufacturer, is accelerating its production capacity with a target of 10,000 units annually within the coming years. While its core focus remains on the electric bus segment, the company is now setting its sights on heavy-duty electric trucks, particularly in the high-tonnage ...
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Olectra Greentech Ltd, a leading electric vehicle (EV) manufacturer, is accelerating its production capacity with a target of 10,000 units annually within the coming years. While its core focus remains on the electric bus segment, the company is now setting its sights on heavy-duty electric trucks, particularly in the high-tonnage and mining sectors.
Olectra’s decision to venture into the electric truck market stems from the growth opportunities in the higher tonnage catetory, amidst the lack of significant competition in the space. With global commercial transport shifting toward sustainable solutions, electric trucks could provide a compelling alternative to diesel-powered counterparts, particularly in industries such as mining and logistics, where operational efficiency and regulatory compliance are crucial.
The company claims to remain committed exclusively to electric mobility, though its hydrogen fuel cell initiatives will operate under a separate entity. Initially collaborating with Reliance on a fuel cell bus project, Olectra has since pursued independent development of hydrogen-powered buses. While a clear commercialization timeline has yet to be defined, research and development (R&D) efforts in this area continue.
Furthermore, recognizing the growing demand for energy storage solutions, Olectra is positioning itself to capitalize on large-scale battery energy storage systems. With many state governments and power utilities investing in grid stabilization projects, the company sees an opportunity to leverage its expertise in high-capacity battery technology.This indicates the company's intent to expand beyond vehicle manufacturing into infrastructure solutions. “Wherever the opportunities arise, Olectra will actively participate in tenders,” stated K. V. Pradeep, Chairman and Managing Director, in a recent interaction with Autocar Professional.
Production and Orderbook Growth
For the fiscal year 2025 (FY25), the company aims to deliver approximately 1,200 electric buses, with a more ambitious goal of 2,500 units in FY26. In the third quarter of FY25, it delivered 282 units, bringing its cumulative tally to 753. With an estimated 450 units expected in the final quarter, the company is steadily scaling up output.
The order backlog remains substantial, with over 10,200 pending units, including a significant contract with Mumbai’s BEST and MSRTC. Given the current average unit price of Rs 1.5 crore, Olectra’s order book translates to an estimated revenue potential of Rs 15,000-16,000 crore, with execution expected over the next two to three years. The company claims to have around 40% market share in the e-Buses segment.
To meet this growing demand, Olectra is expanding its manufacturing infrastructure. Phase II of its new plant is progressing, with robotic automation scheduled for implementation in its second phase. Major robotics firms such as Fanuc and Kuka are being engaged to enhance production efficiency. The overall capital expenditure (capex) for this expansion is estimated at Rs 750 crore, of which Rs 500 crore is expected to be raised through debt financing, with the remaining Rs 250 crore funded through internal accruals.
Despite an already substantial order book, Olectra remains active in securing new contracts. “We haven’t stopped our participation in new e-bus tenders,” noted Chief Financial Officer B. Sharat Chandra during an investor call. The company has recently bid for tenders in Himachal Pradesh (HRTC) and North Western Karnataka, collectively amounting to 680 buses.
Technology Partnership And Localisation Efforts
Olectra’s long-standing technology partnership with BYD, a Chinese EV giant, remains a critical enabler of its product development. However, BYD does not hold a financial stake in Olectra, and the collaboration is limited to technological expertise. In line with India’s push for self-reliance, Olectra has aggressively localized its supply chain, the company's top leadership added. Apart from batteries and a few critical components, most parts are now sourced domestically, reducing dependence on imports.
Advancing Battery Technology
At the Bharat Mobility Global Expo 2025, Olectra unveiled its latest innovation: the Blade Battery platform. Designed for enhanced energy efficiency and safety, this new battery technology has undergone stringent testing, including nail penetration and furnace trials, demonstrating resilience against fire hazards. With a 30% higher energy density, the battery enables buses to achieve a range of up to 500 kilometers on a single charge.