Nick Carey

BANBURY (Reuters) – British bus and electric vehicle maker Arrival unveiled a prototype for an electric bus it plans to start producing next year. It will be selling at about the same price as a diesel bus.

Pre-production buses will be running within weeks. Series production at South Carolina’s plant is expected to start in the second quarter.

Avinash Rugoobur, the company’s president, highlighted that the battery compartment is in the ground. Some electric buses have them placed in the ceiling. The bus also has a skylight which runs the length of the vehicle. For easy access by passengers, the bus can also be lowered to the ground.

To reduce production costs, the company makes use of lightweight and durable composite plastic body panels instead of steel or aluminum.

Rugoobur explained that Arrival’s software monitors each vehicle component and allows for wireless upgrades to any associated software.

He said, “Knowing how your vehicle runs in real-time and being able optimize that further reduces fleet costs.” All of these in an electric bus, which is both more affordable than other buses and comparable with diesel.

Electric buses may cost 50% to 50% more depending on where they are sold.

Arrival’s prototype buses were already being tested with First Bus (one of the largest bus operators in the UK).

An estimated 12% are buses, according to Arrival. The South Carolina plant will have an annual capacity for 10,000 units. Executives say that they are planning to announce additional plants in the near future.

Electric buses are gaining popularity as more countries, states, and cities work towards zero-emission transportation.

California’s startup Proterra Inc is competing with China’s BYD (OTC) Ltd or Volvo AB(OTC) Ltd. Change (NYSE:] Mobility, a British subsidiary of Ashok Leyland Ltd and a commercial vehicle manufacturer, announced this week that 300 electric buses would be provided to Bengaluru’s public transport agency.

U.S. Congress just authorized $1 trillion in infrastructure funding. That includes $5.25Billion in electric buses for 2026. That’s a significant increase from the $130M the government spent on 2020 electric transit bus programs.

Mike Ableson from Arrival North America said that financing will allow electric buses to be more accessible for cash-strapped municipalities. But, Arrival’s aim of producing zero-emission buses at the same price and quality as diesel buses won’t change the equation.

Ableson explained that the transit agencies would not have to worry about any additional funding. Instead, they will be able start to buy electric buses rather than diesel buses.