India

Keto Motors to invest ₹300 crore in Telangana electric bus plant

16 December 2025

Keto Motors Private Limited has signed an Memorandum of Understanding (MoU) with the Government of Telangana to build electric bus manufacturing facility in Jadcherla, Telangana, with a planned investment of ₹300 crore. The agreement was formalized at the Telangana Rising Global Summit 2025 and signals a significant boost to the state’s clean transport ecosystem. 

The new facility will focus on producing 9-metre electric buses designed to serve both intra-city and inter-city public transportation needs. By concentrating on this segment, Keto Motors aims to address one of the most critical gaps in India’s sustainable transit infrastructure: reliable, locally manufactured electric buses that can support mass transit expansion while reducing emissions and reliance on diesel-powered vehicles.

Building more than buses — creating jobs and boosting local industry

The project is expected to generate more than 2,000 direct and indirect jobs over the next three years, spanning manufacturing, engineering, assembly, logistics and support roles. This aligns with Telangana’s broader vision of transforming into a hub for advanced mobility manufacturing and sustainable industrial growth.

State government officials say that the investment not only strengthens the EV value chain in Telangana, but also reinforces India’s domestic manufacturing capabilities at a time when global EV demand is soaring. To ensure smooth operational ramp-up, the government will facilitate a single-window clearance process (TG-iPASS) to expedite statutory and regulatory approvals, significantly cutting down time-to-production.

Strategic timing and broader mobility impact

This announcement comes at a strategic moment when India is accelerating its transition toward electrified public transport, backed by various policy initiatives and growing demand from urban and regional transit agencies. Keto Motors — which already manufactures electric three-wheelers and next-gen EV platforms — views the electric bus segment as the next frontier in its growth strategy.

According to company leadership, the Jadcherla plant will initially focus on a production capacity tailored to domestic market needs, with the potential to scale up based on demand and future export opportunities. By building here, Keto Motors aims to leverage Telangana’s investor-friendly policies, robust industrial infrastructure and growing pool of skilled EV talent.

What this means for India’s EV ecosystem

The electric bus sector is crucial for decarbonizing public transport, reducing urban pollution, and lowering operational costs for state and city transit operators. A locally built manufacturing base also helps reduce dependence on imports, strengthen supply chains, and nurture homegrown EV innovation.

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