Why Ashok Leyland, Olectra Greentech, JBM Auto surged by upto 12% in today’s trade?

Shares of India's leading electric bus manufacturers, Olectra Greentech, JBM Auto, and Ashok Leyland, witnessed a sharp rally on Tuesday, with gains of up to 12%, as a major government policy announcement sparked investor confidence in the domestic EV sector.

About the news

The news came from the Parliament House as the Union Minister for Housing and Urban Affairs, Manohar Lal, on Monday, told the Rajya Sabha that 10,000 air-conditioned (AC) electric buses would be deployed in 116 cities across 26 states and Union Territories by the end of 2027 under the PM-eBus Sewa Scheme, which Prime Minister Narendra Modi first announced on 16 August 2023.

More importantly, the minister announced a new scheme to deploy 35,000 additional e-buses, indicating a long-term, large-scale procurement cycle that could significantly benefit manufacturers.

How the Stocks Reacted

JBM Auto was the largest gainer in today’s trade as it hit a high of Rs 603 per share, up by nearly 12 percent from its previous day’s closing price of Rs 540.35 per share. Following this was Olectra Greentech, which jumped to a high of Rs 1,113.30 per share from its previous day’s closing price of Rs 1024.40 per share, representing a gain of nearly 9 percent. Also, Ashok Leyland gained 3 percent during the trade, hitting a high of Rs 167 per share.

Why This Matters

The government update revealed that the contracts for 6,500 buses have been signed. It was also reported that 225 buses had been delivered last month alone. This turned the scheme from policy intention to actual implementation, a major market mood change.

For manufacturers, the 35,000-bus second wave is a potentially game-changing project order pipeline even years ahead, thus today's market rise is not simply a reaction. Public transport electrification in India is gaining pace, and these stocks are now getting higher valuations as structural EV infrastructure plays, rather than just as cyclical auto betting. With stronger pollution-reduction mandates and increasing urban mobility demand, the future is looking more electric by the day.