First in Solent is buying fuel-efficient buses for three of its most popular routes, which will run from May.
The money will go towards 22 Wright Streetlite midi micro-hybrids, which will run on the service between Fareham and Gunwharf Quays, in Ports-mouth, which takes passengers via Paulsgrove, the Queen Alexandra Hospital and Cosham.
First is also investing in nine Optare Solo buses for the Service 9 between Fareham and Gosport, equipped with free Wi-Fi and leather seats.
This is in addition to the £6.6m the company spent on 41 new Wright Streetlites last year.
Chrissie Bainbridge, general manager, said: “These services are designed to make travelling to the centres of Portsmouth, Fareham and Gosport as easy and convenient as possible.”