A study by Bloomberg New Energy Finance suggests that within the next seven years, nearly half of the buses used by municipal transit districts across the globe will be electric.
As per the report, it is predicted that electric buses will go up to 1.2 million by 2025. China will account for 99% of the world’s electric buses by that time.
Electric buses may take away some of the market-share from both diesel and CNG buses. While electrified buses are more expensive in upfront costs than diesel and CNG buses, the BNEF study found that all-electric buses can offer lower total cost of ownership through their vehicle lifecycles. The cost of fuel and maintenance expenses can be much lower. Electric buses are much easier to maintain and require less parts replacement than diesel- or natural gas-powered buses.
Another important forecast states that dip in the lithium battery prices will make electric buses more competitive with diesel buses by 2026.
As for China, BYD and another domestic bus maker, Yutong, are dominating electric bus sales. While BYD is the largest global electric vehicle manufacturer, Yutong is the largest overall bus maker in China.
All over the world national and city governments are pushing for cleaner air, making electric buses an attractive option. That’s being seen around the world, with mayors in Paris, Amsterdam, Los Angeles, and San Jose, Calif., urging environmental regulators to roll out incentives and requirements pushing for growth in electric buses.