Converting current internal combustion engine (ICE) vehicles to electric ones is known as retrofitting. The procedure entails swapping out the original engine and any associated parts for a new alternative energy source that will be installed inside the current vehicle body.
The report jointly prepared by the Foundation for Economic Growth and Welfare (EGROW Foundation) in collaboration with Primus Partners further added that if the country retrofits 20,000 buses annually, it can save about 500,000 tons of diesel and reduce crude oil imports by 12.7 million barrels yearly. The industry can also contribute substantially to India's goal of creating 30-35 million new green jobs by 2047.
Underscoring the benefit of retrofitting, it stated that retrofit buses significantly reduce operating
and maintenance costs compared to traditional and new electric buses. Particularly, when considering the lifespan and daily operational parameters, the cost per kilometre for retrofitted buses emerges substantially lower, reinforcing the economic argument for retrofitting.
The report also analysed the financial benefit of this process and stated that it helps to achieve a faster return on investment (ROI), making it an attractive option for bus fleet operators and government authorities alike.
Highlighting the benefit of adopting retrofitting It notes that an ICE bus costs more than INR 29 per km, while an electric one costs INR 28 per km. In contrast, a 9-metre retrofitted bus costs INR 19 per km, a 12-metre retrofitted bus with two batteries costs nearly INR 22 per km and a 12-metre retrofitted bus with three batteries costs marginally more than INR 23 per km. Thus Retrofitted 9-meter buses are 32.1 per cent more cost-effective than a new EV bus. The 9-metre retrofitted bus is the most economical option.
It also outlined policy recommendations suggesting that specific policies to increase retrofitted bus numbers in India.
"The government should also incorporate retrofitting incentives into the FAME (Faster Adoption and Manufacturing of Electric Vehicles) policy to boost EV adoption," the report added.
GST norms, modifying the existing vehicle scrapping policy, and revisiting state retrofit EV Policies are among the top policy recommendations of the report.
Commenting on the findings, Dr. Charan Singh, Chief Executive Office at EGROW Foundation and Davinder Sandhu, Chairperson, Primus Partners in their foreword opined, "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."
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