UK EV delegation visits Kolkata, FIDC spots challenges for clean mobility

A UK electric vehicles delegation, comprising six innovative SMEs specialising in fleet telematics, battery energy storage systems, AI, IoT-based cybersecurity and modular decentralized generators, visited Kolkata on Tuesday to explore opportunities in India.

The delegation, facilitated by Connected Places Catapult and supported by Global Business Inroads (GBI) in association with the Bengal Chamber of Commerce and Industry (BCC&I), aims to foster bilateral trade and investment between the UK and India, particularly in the 2- and 3-wheeler EV segments.

Andrew Fleming, British Deputy High Commissioner to East and Northeast India, said, This EV delegation marks a major step in advancing EV innovation and forging new partnerships. By working together, we can unlock opportunities, drive investment, and accelerate the adoption of clean mobility solutions.

However, the push for EV adoption in India faces significant financing challenges, as highlighted by the Finance Industry Development Council (FIDC), an association of non-banking financial companies.

The FIDC pointed out hurdles such as uncertainty around EV resale values due to evolving battery technology, battery risks, lack of standardised assessments, limited charging infrastructure and high capital costs, which collectively make EV financing riskier.

The body also flagged unclear insurance policies for retrofitted EVs and low consumer awareness about EV financing as additional barriers.

To address these issues, the FIDC proposed creating a dedicated EV financing fund through institutions like SIDBI or NABARD, reducing interest rates on small EV loans, and establishing a government-backed guarantee fund. Standardizing battery certification and resale mechanisms was another key suggestion to strengthen the secondary market for EVs.

The FIDC emphasised that these measures are crucial to unlocking USD 50 billion in EV financing by 2030, which would support India's transition to clean mobility and help achieve its net-zero targets.

Meanwhile, the UK EV delegation showcased cutting-edge technologies at a session held at the British Club, creating a platform for UK businesses to explore long-term partnerships in India.

Elena Williams, Director of Government and Global Engagement at Connected Places Catapult, highlighted the value of bilateral exchanges in EV and micromobility, expressing optimism for continued collaboration.

The initiative is expected to strengthen the EV ecosystem, drive investment, and create new jobs, benefiting both economies.