Sitharaman’s budget may propel Kolkata’s growth as a 3-wheeler hub
Finance Minister Nirmala Sitharaman’s ambitious proposals in the interim Budget for 2024-25, aimed at fortifying the electric vehicle (EV) ecosystem in India, have the potential to further boost the adoption of electric vehicles (EVs) in Kolkata, particularly electric buses, and position Bengal as a key hub for e-three-wheelers.
The focus is on expanding infrastructure and supporting manufacturing, specifically promoting e-buses for public transport to create job and entrepreneurship opportunities.
A senior official from the state Transport Department emphasised the state’s success in operating India’s largest fleet of e-buses in Kolkata and anticipated significant advantages from the budgetary boost to the EV sector.
India’s EV industry has experienced triple-digit growth since 2021, primarily driven by e-two-wheelers and e-three-wheelers. Contributing factors include increased access to subsidies, improved charging infrastructure, favourable policies, affordable and reliable vehicles and growing confidence in EVs.
Demand has been particularly strong for commercial electric vehicles, while personal electric vehicles, especially e-two-wheelers, have seen exponential growth since 2020.
Bengal constitutes 15 per cent of the manufacturing hubs for e-three-wheelers in India, contributing to over 12 per cent of the total production of such electric vehicles nationwide.
This achievement is credited to the state’s EV policy, which places emphasis on manufacturing, and research and development rather than solely concentrating on adoption through subsidies and incentives.
Although Bengal ranks lower among the top 10 states in terms of e-three-wheeler adoption, it meets nearly 70 per cent of its demand through local production.
