New Delhi, Sept. 20 -- Only three automakers out of 18 have qualified for subsidies for electric buses under the government's production-linked incentive scheme for automobiles and auto parts (PLI-Auto), through which it plans to disburse nearly Rs.26,000 crore to strengthen India's clean-mobility ecosystem. The three companies-Tata Motors, Eka Mobility and Volvo Eicher Commercial Vehicles-have collectively received approvals for eight models of e-buses, the scheme's portal showed. India's clean-mobility push comprises schemes such as PM E-drive and PM eBus Sewa, which aim to boost demand for cleaner buses on Indian roads. Simultaneously, the PLI-Auto scheme provides incentives to manufacturers of electric vehicles, including buses. However, the PM E-drive scheme's target of reducing the upfront cost of 14,028 buses and PM eBus Sewa's target of deploying 10,000 e-buses cover only a fraction of India's buses. "Central government schemes are largely targeting the urban bus segment, which makes up only about 2% of the overall bus market. The big question is how to extend electrification to the remaining 98% of the bus market. That will be key to truly achieving scale," said Amit Bhatt, India managing director, International Council for Clean Transportation. The PLI-Auto scheme requires bus makers to source at least 50% of parts locally, which is likely to be the main hindrance for them, domain experts said, as India's electric vehicle ecosystem is hugely dependent on imported Chinese components. Bhatt said, "Sourcing bus components locally comes with two sets of challenges-technical and financial. The technical challenge is that many parts cannot yet be manufactured in India, while the financial challenge is that many components that can be produced domestically are still cheaper to import. The only way to make these components affordable for Indian manufacturers is to achieve scale by generating strong demand for e-buses. China, for instance, was able to build scale by ensuring robust and consistent demand for e-buses," he said. E-buses saw a rise in overall demand in fiscal 2026, with over 2,000 units registered in the first half. In fiscal 2025, e-bus sales dipped marginally to about 3,300 units from 3,500 units in fiscal 2024, according to data from the road ministry's Vahan portal. In PLI-Auto's first year of disbursal, fiscal 2025, the government provided Rs.322 crore to three vehicle makers, Tata Motors Ltd, Mahindra & Mahindra Ltd and Ola Electric Mobility Ltd, and one component maker, Toyota Kirloskar Auto Parts Ltd. The government expects a surge in disbursals in fiscal 2026, with nine companies claiming Rs.2,000 crore, Union heavy industries minister HD Kumaraswamy told Mint in June. The scheme provides a 13-18% benefit on annual incremental sales of zero-emission vehicles. It is set to run for five years. Email queries to the heavy industries ministry, Tata Motors Ltd, Volvo Eicher Commercial Vehicles Ltd and Eka Mobility, a subsidiary of Pinnacle Mobility Ltd, remained unanswered....