Shares of EaseMyTrip, which were muted on Thursday, skyrocketed as soon as the announcement was made. The stock soared over 14% to hit an intraday high of ₹44.89.

What Happened: In a strategic move to diversify its operations, online travel tech platform, EaseMyTrip has made its entry into the electric bus manufacturing sector. The company has launched a new subsidiary, Easy Green Mobility, to spearhead this initiative.

Easy Green Mobility will be in charge of manufacturing electric vehicles (EV) buses, while YoloBus, another EaseMyTrip subsidiary, will handle operations.

The company will invest ₹200 crore in the next two to three years for extensive research and development, product development and setting up a manufacturing plant.

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The Indian electric bus market is expected to grow at an annual growth rate of 24% from 2024 to 2030. With the establishment of Easy Green Mobility, EaseMyTrip aims to capture a significant portion of this burgeoning market and capitalise on the increasing demand for EVs in India.

Co-founder of EaseMyTrip, Rikant Pittie, stated, “A decade from now, the yearly demand for electric buses is expected to grow to 1.25 lakh to 1.50 lakh units per annum. The current market dynamics present a significant opportunity to enhance supply and meet the growing demand for electric buses by localizing production and creating a fully ‘Make-In-India’ product.”

The company’s vision includes manufacturing advanced, energy-efficient vehicles, equipped with cutting-edge technology. These vehicles are designed to support long-range travel on a single charge. The initial production capacity of the plant is projected to be 4000-5000 buses, with plans to increase capacity in the future.

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