Kolkata: Finance minister Nirmala Sitharaman’s ambitious plans in interim budget 2024 strengthening the electric vehicle (EV) ecosystem in India may further propel the spread of Kolkata’s electric vehicles, particularly electric buses, and Bengal’s emergence as a major e-three-wheeler hub. The emphasis is on infrastructure expansion and support for manufacturing, with a particular focus on promoting e-buses for public transport, aiming to generate employment and entrepreneurship opportunities.
A senior transport department official highlighted the state’s success in running the largest e-bus fleet in Kolkata and anticipated substantial benefits from the budgetary boost for the EV sector.
India’s EV industry has witnessed triple-digit growth since 2021, led primarily by e-2-wheelers and e-3-wheelers. Factors contributing to this growth include increased access to subsidies, improved charging infrastructure, favourable policies, affordable and reliable vehicles, and growing confidence in EVs. Commercial electric vehicles have driven demand, while personal electric vehicles, especially e-2-wheelers, have also experienced exponential growth since 2020.
Aarti Khosla of Climate Trends lauded the measures as a significant step towards reducing India’s dependence on fossil fuels, particularly imported crude oil.
Tushar Choudhary, founder & CEO of Motovolt Mobility, expressed optimism about the government’s commitment to enhancing the e-vehicle ecosystem. He praised the focus on eco-friendly manufacturing and highlighted Motovolt’s readiness to be a key player in the transformative journey.
However, there are regional variations in EV adoption. Ten states and Union territories drive 80% of e-3 wheeler demand, with West Bengal contributing over 4.5%. While this might seem relatively low compared to neighbouring states like Bihar and Assam, a closer look reveals a thriving EV manufacturing ecosystem in Bengal, particularly in the e-3-wheeler category, said a senior official.
Bengal accounts for 15% of the e-3-wheeler manufacturing hubs in India, with over 12% of all such EVs produced in the country. The success is attributed to the state’s EV policy, which prioritised manufacturing and research and development over focusing solely on adoption through subsidies and incentives.
Despite being in the lower rungs among the top ten states in e-3-wheeler adoption, West Bengal fulfils close to 70% of its demand locally.
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