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CKA Birla Group Eyes EV Manufacturing in Uttarpara; Can Bengal Revive Auto Hub Status?
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Moneycontrol•21-09-2026, 10:06
CKA Birla Group Eyes EV Manufacturing in Uttarpara; Can Bengal Revive Auto Hub Status?
- •The CKA Birla Group has proposed manufacturing electric vehicles at Uttarpara, the former site of Hindustan Motors, to the West Bengal government.
- •This move could mark a return to vehicle manufacturing in West Bengal, nearly two decades after Tata Motors exited Singur, and potentially rebuild an automobile ecosystem.
- •West Bengal has a significant automobile market, especially for two-wheelers, but lacks major manufacturing and a robust component ecosystem since Hindustan Motors suspended operations in 2014.
- •Experts suggest that while an EV plant offers an opportunity, a sustainable auto hub requires a strong anchor manufacturer, a network of component suppliers, and substantial production volumes.
- •Challenges include resolving land availability issues at Uttarpara and attracting component manufacturers with credible volumes and long-term commitment to local sourcing.
Key Questions Answered
The CKA Birla Group has approached the West Bengal government with a proposal to manufacture electric vehicles at Uttarpara, which could potentially revive automobile production at the former home of the Ambassador.
Hindustan Motors stated in its FY26 annual report that the West Bengal government has resumed and taken possession of the entire 395-acre factory land. The Supreme Court dismissed the company's petition challenging this land resumption in July 2025.
According to SIAM data for FY26, West Bengal accounted for 2.7 percent of India's passenger vehicle sales (about 1.25 lakh units) and 4.7 percent of national two-wheeler sales (roughly 10.2 lakh units).
