The Thomas Built Buses, a subsidiary of the north American company Daimler, will see their 'Saf-T-Liner C2 Electric Bus', also known as 'Jouley', on the road during 2019.
It will have a capacity for up to 81 children at a time and will run "safely, quietly and emission free" on its 160kWh battery, giving a range of up to 160 kilometres.
There is also an option to add battery packs too for a longer range of travel.
Thomas Built Buses was founded in 1916 and is best known for its legendary yellow school buses, holding a market share of 38.7 percent and making it a leading manufacturer.
It comes after Daimler unveiled their brand new all-electric heavy-duty truck called the E-FUSO Vision One.
Marc Llistosella, President and CEO of Mitsubishi Fuso Truck and Bus Corporation and Head of Daimler Trucks Asia, said: "Our E-FUSO Vision One is an outlook on a feasible all-electric heavy-duty truck. It underlines our commitment to electrify our complete product range. FUSO has been a pioneer in the electrification of trucks for many years. Just one month ago we launched our eCanter, the first serial-produced, all-electric light duty truck. In the future, all our electrified vehicles will run under the name of E-FUSO, our new product brand dedicated exclusively to electric trucks and buses.
"With the eCanter, we have proven electric trucks are feasible for commercialisation. Today, our eCanter saves up to 1000 Euros in running costs per 10.000 km. And with the rapidly evolving battery technology, we will continue to develop electric trucks and buses that will have a positive environmental and economic impact on society."