[color=hsl(0,0%,0%)]India’s intercity bus segment is on the cusp of a major transformation, and LeafyBus wants to be at the centre of it. In an exclusive interaction with Utkarsh Agarwal, Rohan Dewan, Co-founder and CEO of LeafyBus, outlines why the shift to fully built electric sleeper buses is no longer optional, how the company plans to deploy 100 long-distance EV buses across key corridors, and what it takes to make electric intercity travel commercially viable, safe, and scalable. From charging infrastructure and driver training to pricing strategy and future technologies, Dewan breaks down LeafyBus’ roadmap in a candid conversation.
[color=hsl(0,0%,0%)]Excerpts
[color=hsl(0,0%,0%)]Q: LeafyBus has announced a major collaboration with Eicher for electric sleeper buses. What is the idea behind this partnership and how large is the deployment?
[color=hsl(0,0%,0%)]The primary idea was to find an OEM that can build a fully built electric sleeper bus, which is missing from the industry today. Quite recently, the Transport Minister, Nitin Gadkari had mentioned that only fully built sleeper buses would be allowed to operate after the accidents that happened across the country.
[color=hsl(0,0%,0%)]This is a fully built electric sleeper coach from Volvo-Eicher. For the current financial year, the order is for 36 buses. We have already received 14 buses, and the remaining 32 will be delivered in the next 50-odd days, before March 31. Post that, the total order stands at 100 buses, which we will receive over the next financial year. We intend to deploy them initially in northern India and then gradually move towards the southern part of the country.
[color=hsl(0,0%,0%)]Q: Are you in talks with other OEMs apart from your current partner?
[color=hsl(0,0%,0%)]Yes, we are in discussions with multiple OEMs, but as of today, our largest and most significant partner remains Volvo–Eicher.
[color=hsl(0,0%,0%)]Q: Which routes are these electric sleeper buses currently operating on, and where will they expand next?
[color=hsl(0,0%,0%)]We are already operational on routes like Delhi–Jaipur, Delhi–Dehradun, Delhi–Agra, and Delhi–Lucknow. Since these are long-range, high-capacity buses, we plan to deploy them on longer routes as well, such as Delhi–Katra, Delhi–Jaipur, and internal routes within Rajasthan like Udaipur, Jodhpur, and Hanumangarh. In Uttar Pradesh, we are looking at routes like Varanasi, Azamgarh, and Prayagraj.
[color=hsl(0,0%,0%)]Q: Is LeafyBus also planning to expand into southern India?
[color=hsl(0,0%,0%)]Yes, over the next six months, we intend to move towards the southern part of the country. We are currently doing detailed research on which routes to start with. Some of the shortlisted routes include Mumbai–Pune, Hyderabad–Vijayawada, and Bhopal–Indore.
[color=hsl(0,0%,0%)]Q: There is a strong regulatory push towards fully built buses. How do these compare with traditional body-built buses in terms of safety and cost?
[color=hsl(0,0%,0%)]A body-built vehicle is definitely more lucrative when it comes to pricing, but it compromises passenger safety. Recently, several incidents involving body-built buses resulted in fires and fatalities.
[color=hsl(0,0%,0%)]Fully built buses, on the other hand, are manufactured like cars inside a single facility, where all safety features are designed and integrated in a compliant manner. We have mandatory emergency exits, multiple emergency escape points, automatic fire suppression systems, ADAS, and driver monitoring systems. From a safety perspective, these buses are far superior.
[color=hsl(0,0%,0%)]Q: With all these features, LeafyBus appears to be positioning itself as a premium service. How does that translate into ticket pricing for consumers?
[color=hsl(0,0%,0%)]Our idea is to offer a premium product at an affordable price. We are sweating the asset in a way that allows us to price tickets comparable to a diesel ICE bus that is actually of a lower category than ours.
[color=hsl(0,0%,0%)]We are targeting close to Rs 2 per kilometre, and we do not want to put pricing pressure on consumers despite offering a superior travel experience.
[color=hsl(0,0%,0%)]Q: What are the biggest challenges in transitioning intercity travel to electric mobility?
[color=hsl(0,0%,0%)]India has around 26 lakh buses, and even with government orders, less than 1 per cent of the transition to electric has happened so far. That itself shows the size of the opportunity.
[color=hsl(0,0%,0%)]From our operations over the last year, we have already clocked more than 12 lakh kilometer and catered to around 1.5 lakh passengers. We’ve seen occupancies touch 90 per cent, which is significantly better than ICE buses. Consumers are accepting electric buses because they are safer, more comfortable, and clearly the way forward.
[color=hsl(0,0%,0%)]Q: Did the recently announced Union Budget met your expectations in terms of policy support for electric intercity operators?
[color=hsl(0,0%,0%)]There are already several policies in place that support commercial fleet owners. Many states are also introducing favourable policies for private intercity operators like us. Delhi, for instance, is expected to roll out its policy very soon.
[color=hsl(0,0%,0%)]The GST changes last year and the current policy environment have been quite motivating. Not just this year’s budget, but overall, policies have consistently supported the EV ecosystem.
[color=hsl(0,0%,0%)]Q: Driver availability is a known challenge in the bus industry. How does LeafyBus address this issue?
[color=hsl(0,0%,0%)]I have been part of the bus industry for 15 years, and my core team has a combined experience of 55 years. We have strong industry networks.
[color=hsl(0,0%,0%)]We shortlist drivers carefully and train them at OEM facilities specifically for operating EV buses. We also offer them a healthier compensation package compared to traditional operators, which helps us attract and retain the best talent.
[color=hsl(0,0%,0%)]Q: LeafyBus is also investing in dedicated private EV depots. Can you explain the strategy behind these hubs?
[color=hsl(0,0%,0%)]This is Phase 1 of our Delhi depot at Sonia Vihar. The full facility will be developed in four phases across one acre of land. Phase 1 covers around 11,000 square feet and includes charging infrastructure and service bays. Eventually, we will add parking and F&B services for passengers.
[color=hsl(0,0%,0%)]We are about 20 minutes from ISBT Kashmiri Gate & Anand Vihar. While we are applying to operate from Kashmiri Gate, the long-term plan is to create superior hubs with better safety, comfort, waiting lounges, and food options, and gradually shift passengers to these facilities.
[color=hsl(0,0%,0%)]Q: How much investment has gone into fleet expansion and infrastructure development so far?
[color=hsl(0,0%,0%)]We raised around USD 4.1 million last October for fleet expansion and close to USD 1 million for infrastructure development. All our hubs are asset-light and built on leased land with a tenure of 10 years.
[color=hsl(0,0%,0%)]We already have hubs in Jaipur, Dehradun, Agra, and Lucknow. The idea is to create a single point where buses are charged, passengers can wait comfortably, and boarding and de-boarding happen seamlessly at both origin and destination cities.
[color=hsl(0,0%,0%)]Q: How much of the recently raised capital has been deployed, and are you planning further fundraising?
[color=hsl(0,0%,0%)]Capital raising is an ongoing process. We raised USD 4.1 million for the procurement of the next 100 buses and have utilised around 10 per cent so far, which helped us induct close to 22 buses.
[color=hsl(0,0%,0%)]By the end of this financial year, we expect to reach around 55 buses and utilise nearly 50 per cent of the capital. We already have additional term sheets in place and continue to raise funds for expansion.
[color=hsl(0,0%,0%)]Q: Power availability is often a concern, especially in Tier 2 and Tier 3 cities. How do you manage charging reliability?
[color=hsl(0,0%,0%)]We operate on dedicated EV power connections in partnership with Glida, our charging point operator. These are high-capacity connections with no power shortages. At our Delhi facility, we currently have two 360 kWh chargers, with four more coming in the next two months, and a total power capacity of 1 MW. These have 100 per cent uptime. In Tier 2 and Tier 3 cities, we plan to support charging with battery storage and solar installations. For Tier 1 cities like Delhi, power availability is not a concern at all.
[color=hsl(0,0%,0%)]Q: Do you see battery swapping as a viable option for long-distance electric buses in the future?
[color=hsl(0,0%,0%)]Absolutely. EV technology is evolving every single day. Battery swapping and other new technologies are being developed, and we are open to every innovation that makes electric transit more sustainable and adaptable across ecosystems.
[color=hsl(0,0%,0%)]Q: With rapid technological changes, how do you look at the lifecycle of electric buses?
[color=hsl(0,0%,0%)]I see these buses much like a mobile phone. Battery life today is around 6 to 7 lakh kilometer, or roughly 2.5 years. If a new battery technology emerges, we would be more than happy to upgrade our buses, and these vehicles are designed to support such upgrades. |
