Indian Travel Firm EaseMyTrip Ventures into Electric Bus Manufacturing

Easy Trip Planners, a prominent Indian online travel agency, has unveiled plans to diversify its operations by entering the electric vehicle manufacturing sector. The company, which operates EaseMyTrip.com, announced on September 5, 2024, its intention to invest 2 billion rupees ($23.8 million) in the production of electric buses over the next two to three years.

This strategic move aligns with India's growing focus on sustainable transportation. As the world's third-largest emitter of greenhouse gases, India has set ambitious targets for electric vehicle adoption, aiming for 30% of new vehicle sales to be electric by 2030. The initiative by Easy Trip Planners could contribute significantly to this goal, as electric buses can reduce carbon emissions by up to 75% compared to their diesel counterparts.

The investment will be allocated towards establishing a manufacturing facility, conducting research, and developing products. Easy Trip Planners aims to produce between 4,000 and 5,000 electric buses within the specified timeframe. This production target is substantial, considering that as of 2023, India had over 7,000 electric buses in operation nationwide.

Rikant Pittie, co-founder of EaseMyTrip, stated:

The company's decision to venture into electric bus manufacturing comes at a time when India's electric vehicle market is experiencing rapid growth, with projections indicating a compound annual growth rate of 49% between 2022 and 2030. This expansion is supported by government initiatives such as the FAME II scheme, which provides subsidies for electric vehicle manufacturing.

Easy Trip Planners' electric buses are intended for use by YoloBus, an inter-city bus ticket platform. This integration could potentially revolutionize inter-city travel in India, offering a more environmentally friendly alternative to traditional modes of transportation.

The announcement had a significant impact on Easy Trip Planners' stock performance, with shares rising by 11% following the news. This increase marks the company's second-best trading day in 2024, highlighting investor confidence in the diversification strategy.

While Easy Trip Planners is primarily known for its online travel services, with air travel accounting for approximately 95% of its first-quarter revenue in 2024, this new venture represents a bold step into the manufacturing sector. The move could potentially position the company as a key player in India's evolving electric vehicle landscape, contributing to reduced fuel consumption in the public transportation sector, which currently accounts for about 25% of the country's total fuel usage.

As the global electric bus market is projected to reach $53.89 billion by 2027, Easy Trip Planners' entry into this sector could yield significant long-term benefits, both for the company and for India's sustainable transportation goals.