Mahindra is hoping to start selling electric buses in India next year as it responds to government policies to encourage EV take-up and reduce the country’s dependence on fossil fuels as well as improve air quality.

Bloomberg reports that Mahindra is working on bigger electric powertrains that will drive buses and cargo vehicles.

Mahesh Babu, chief executive officer at Mahindra Reva Electric Vehicles, said in an interview that the company aims to sell a total of 100,000 units of electric passenger vehicles, buses and trucks over the next two to three years, compared with about 7,000 units of such vehicles it has sold so far.

Bloomberg noted that the push by Mahindra to expand its offering of electric vehicles comes as Prime Minister Narendra Modi has asked a group of senior ministers to lead an initiative to ensure that by 2030 most vehicles in India are powered by electricity. The report added that the government is providing subsidies on electric and hybrid vehicles and has said it will support the development of technology as well as charging infrastructure.

“There’s a huge demand for mass-mobility transport solutions in India as the ministry of transportation and pollution control board are keen to have clean-energy vehicles plying on the roads,” Babu said. “The prime challenge is related to charging infrastructure as there is no policy.”

Mahindra is also looking at making luxury electric cars under the Pininfarina brand, Babu said. Mahindra chief Anand Mahindra has said the automaker hopes to participate in high-performance electric vehicles with the design company.

It will also work with its SsangYong subsidiary on a shared EV platform to target markets around the world.

See also: Automotive market is ‘polarising’ – Anand Mahindra