Retrofitted 9-Meter Buses 32.1% Cheaper Than New EVs, Says EGROW-Primus Report

A new study from EGROW Foundation and Primus Partners says retrofitted 9-meter diesel buses cost 32.1% less per kilometer than new electric buses. The report, Retrofitting of Inter-City Diesel Passenger Buses, compares internal combustion engine (ICE) buses, new EVs, and retrofitted electric buses, focusing on actual trips between Mumbai and Pune.

The study shows retrofitting helps both the economy and the environment. It also supports India’s energy security and job growth.

“The economic benefits of this approach are profound, extending beyond mere financial savings to broader economic revitalization and environmental improvements. Retrofitting offers a pragmatic solution, leveraging existing infrastructure while transitioning towards cleaner mobility. It represents a critical step towards sustainable urban transport, demonstrating how innovation and policy alignment can drive tangible progress.” wrote Dr. Charan Singh (EGROW CEO) and Mr. Davinder Sandhu (Primus Chairperson).

Top Insights

• ICE buses cost ₹29/km, new EVs cost ₹28/km, but 9-meter retrofitted buses run at ₹19/km.
  
• 12-meter retrofitted buses cost ₹22/km (two batteries) or ₹23/km (three batteries).
  
• With a 10-year lifespan, the 9-meter retrofitted bus costs less than ₹15/km.
  
• This retrofit model cuts diesel use by 500,000 tons per year and saves 12.7 million barrels of crude oil imports annually.
  

Environmental Gains

Retrofitting offers lower emissions. Still, most of India’s electricity (75%) comes from coal. To cut emissions further, the power for EV buses should come from renewables, not fossil fuels.

More Jobs

Retrofitting protects and creates jobs.

• In 2020–21, STUs employed 640,690 people.
  
• 84,818 workers in repair and maintenance can be retrained.
  
• Retrofitting will add 6,000–7,000 direct jobs and 36,000–42,000 indirect jobs over the next few years.
  

Policy Suggestions

To boost retrofitting, the report suggests clear steps:

1. Run pilot projects to convert ICE buses across regions.
   
2. Revise scrapping rules to lower re-registration costs for retrofitted EVs.
   
3. Subsidize retrofitting, especially for State Road Transport Undertakings (STUs).
   
4. Include retrofitting in the FAME policy to promote EV adoption.
   
5. Offer GST rebates for retrofitting parts and services.
   
6. Create state-level retrofit EV policies, with interest subsidies and charging stations.
   

Why It Matters

India expects to reach 3 million buses by 2030. Retrofitting offers a fast, low-cost way to make transport cleaner. It uses existing buses, cuts operating costs, and creates jobs.

About EGROW Foundation

EGROW is a non-profit think tank focused on macroeconomics, public policy, and development. It runs research, training, and policy analysis for India and beyond.

About Primus Partners

Based in New Delhi, Primus Partners is a consultancy organization. Both the public and commercial sectors are involved in its work on policy, rural development, and sustainable growth.

Final Thoughts

Not only is retrofitting diesel buses economical, but it's also environmentally friendly. India can use the buses it has today while reducing pollution, saving fuel, and creating jobs with wise policies. India can promote a clean transportation future and achieve its green goals by taking this route.

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