The traveltech major said it will invest INR 200 Cr for R&D, product development, and setting up a manufacturing plant over the next 2-3 years
Easy Green Mobility will manufacture ebuses and operate via EaseMyTrip’s other subsidiary YoloBus
By 2027-28, the company targets to operate over 2,000 ebuses across the country
Online travel aggregator (OTA) Easemytrip
has incorporated a wholly owned subsidiary Easy Green Mobility to foray into the electric bus manufacturing market.
The traveltech major said it will invest INR 200 Cr for R&D, product development, and setting up a manufacturing plant over the next 2-3 years. Easy Green Mobility will manufacture ebuses and operate via EaseMyTrip’s other subsidiary YoloBus.
EaseMyTrip acquired the inter-city travel platform YoloBus in 2021. Currently, the platform has a network covering over 250 routes across the country. Easy Green Mobility plans to build a plant with a capacity of producing 4,000-5,000 ebuses in the initial phase. The production capacity will be ramped up going forward.
Following the announcement, shares of EaseMyTrip jumped over 12% to touch an intraday high of INR 44.3 on the BSE.
It is pertinent to note that the development comes when the country’s EV industry is expanding rapidly. After the surge in adoption of electric two-wheelers over the last few years, the government is now focusing more towards electrification of public vehicles.
With the foray in the ebus manufacturing segment, EasyMyTrip will lock horns with its OTA competitor ixigo. While ixigo is not in the business of manufacturing ebuses, it is one of the backers of ebus operator Fresh Bus.
EasyMyTrip’s newest subsidiary Easy Green Mobility will also compete with publicly listed players Olectra Greentech, Ashok Leyland’s subsidiary Switch Mobility, Tata Motors, and a few other automotive giants.
Commenting on the new launch, Rikant Pittie, cofounder of EaseMyTrip, said that the demand for ebuses will grow to 1,25,000 to 1,50,000 units per annum in a decade.
“The current market dynamics present a significant opportunity to enhance supply and meet the growing demand for electric buses by localising production and creating a fully ‘Make-In-India’ product,” he said. “Through the FAME scheme, state-level policies and PLI schemes, the government is encouraging the adoption of electric buses across the country.”
It is worth noting that the FAME-III subsidy scheme, which is still under discussion at the central government level, is expected to have a heightened focus on subsidies ebuses and etrucks.
Pittie said that the move to enter ebus manufacturing space aligns with the startup’s plans to expand the non-air business and will help EaseMyTrip establish a strong foothold in the growing EV and emobility sector.
Easy Green Mobility will leverage EaseMyTrip’s brand presence and industry expertise to play a role in the dynamic EV market. The company aims to integrate cutting-edge technology with robust manufacturing practices to produce high-performance ebuses to enhance efficiency, safety, and passenger comfort.
By 2027-28, the company targets to operate over 2,000 ebuses across the country.
EaseMyTrip posted a net profit of INR 33.9 Cr in the June quarter (Q1) of FY25 on an operating revenue of INR 152.6 Cr.
Recently, the startup also acquired a 5% stake in B2B travel Portal E-Trav Tech Limited as part of its aim to diversify its portfolio in the non-air segments.
Earlier this year, EaseMyTrip also launched a new insurance broking subsidiary, EaseMyTrip Insurance Broker Private Limited.
