We illustrate that when the benefits of recent dramatic declines in Lithium battery prices are fully realized, the total cost of ownership of urban (intra-city) electric buses is lower than that for diesel buses in India even without subsidies. Factoring in the air quality benefits, projected reductions in the cost of batteries and solar electricity, it becomes evident that transitioning to an all-electric bus fleet presents an enormous opportunity for India to reduce urban air pollution while improving the finances of urban bus transit agencies. Applying relevant lessons from the policy ecosystem that delivered substantial price reductions and large-scale rapid deployment of solar PV and LEDs could achieve similar outcomes for battery electric buses. Well-designed high volume auctions and clear long term ambitious targets could achieve rapid electrification with little net public subsidy in the long-run.

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