In 2024, WRI México organized a series of events to share India’s electric bus lessons with mobility and finance experts in Mexico. In April, Avinash Dubedi, the program head of integrated transport from WRI India, presented the Aggregated Demand (AD) Model for e-bus procurement.
India’s AD Model is promising for government and public bus agencies facing financial challenges with the high upfront costs of e-buses. It combines demand from multiple cities to encourage electric bus manufacturing, which reduces costs and promotes innovation. This can help accelerate the transition towards sustainable public transportation in Mexico and worldwide.
More recently, in October, experts from WRI India, along with federal and local authorities and representatives from GIZ Mexico, Metrobús (Mexico City’s BRT system), NAFIN (a national development bank), private sector and WRI México, gathered in person to discuss the acquisition and mass manufacturing of electric buses and explore strategies to accelerate electromobility in public transportation in Mexico.
According to WRI’s estimations, Mexico needs to procure approximately 40,000 new buses to replace its outdated buses: The average age of buses in Mexico is between 18 and 20 years and approximately 90% of buses work under informal conditions. To achieve climate change goals, it is necessary to reduce emissions by electrifying the bus fleet. As of October 2004, of more than 100,000 public transport buses in Mexico, only 804 are electric, including trolleybuses. Eighty percent of the buses are in Mexico City and the rest are in four other states.. The demand aggregation and standardization approach that are part of the AD Model has proven successful in India and can help Mexico transform its fleet.
The April webinar and the October in-person workshop facilitated a valuable exchange of ideas and experiences between the two countries.
Key points and outcomes from the events include:
April Webinar Key Points:
- India faced challenges in e-bus adoption due to technology risks and financing issues.
- The AD Model was developed to address these challenges, shifting risks to manufacturers and standardizing orders.
- The PM e-Bus Sewa Scheme, based on the AD Model, brought 10,000 electric buses to underserved cities.
- The model involves public-private partnerships and includes infrastructure development for e-bus depots.
October Workshop Key Outcomes:
- WRI India shared their experience in acquiring and manufacturing 9,500 electric buses, with a goal of 50,000 by 2027.
- Discussions focused on government programs, contracting models and financial mechanisms to support Mexico’s electric mobility transition.
- The workshop highlighted the need for comprehensive planning, including technical, financial and institutional aspects, for successful electromobility projects.
- Challenges specific to Mexico were addressed, such as renewing approximately 40,000 buses and overcoming the current informal conditions in most Mexican transport systems.
- Developing a local electric bus manufacturing industry in Mexico was emphasized.
Both events underscored the potential for applying India’s successful e-bus adoption strategies to Mexico while acknowledging the need for tailored solutions to address Mexico’s unique challenges in public transportation electrification.
The events identified that every stakeholder has a role in advancing e-bus adoption in Mexico:
Federal government
The Mexican federal government needs to establish a clear and ambitious national goal for the electrification of public transport, create a guarantee fund to mitigate financial risks in electromobility projects, establish a certification and approval process for electric buses at the national level, implement incentives for transport operators to transition to electric fleets, and develop a standardized technical annex for electric buses at the national level.
State and municipal governments
On a subnational level, state and municipal governments should update demand studies and public transport routes, considering the different types of users. They should also plan the strategic location of depots and charging stations for electric fleets and professionalize and formalize public transport operators.
Automotive industry
The workshop concludes that Mexico’s automotive industry needs to develop electric bus models adapted to the Mexican market’s needs and engage in continuous dialogue to align the supply and demand for electric buses. One of the reasons for India’s success is that all of India’s vehicle suppliers are Indian, which has allowed for rapid sector development in a short period.
Non-government organizations (including WRI México)
Leveraging the expertise and experience of WRI’s different offices throughout the world, we can share, support and adapt tools, such as the Total Cost of Ownership EValuator, for the electrification of public transport in Mexico.
The successful adoption of electric buses in Mexico hinges on a collaborative effort among all stakeholders. The federal government must set ambitious electrification goals and create a supportive financial framework, while state and municipal governments should focus on planning and optimizing public transport routes and infrastructure. The automotive industry has a crucial role in developing tailored electric bus models and fostering ongoing dialogue to meet market demands. Additionally, non-government organizations, such as WRI México, can provide valuable tools and expertise to guide this transition. The UPS Foundation supported this series of events that mapped out the roles of each stakeholder. By working together and leveraging their respective strengths, these organizations can pave the way for a sustainable and efficient public transport system in Mexico.
This project is part of the TUMI E-Bus Mission, which collaborates with cities globally, including in India and Mexico, to support the development of electric bus fleets
