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Electric Vehicles (EV) & ancillary industries present development opportunities in 13,000 acres of land by 2030.
Electric Vehicles (EV) & ancillary industries present development opportunities in 13,000 acres of land by 2030.

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Around USD 40 billion of investments are envisaged over the next 5-6 years for the development of Electric Vehicles (EV) & ancillary industries in India. However, the deployment of these funds will rely upon successful implementation of government policies, charging infrastructure ramp-up and domestic manufacturing capacity scale-up. As per Colliers’ latest report “EVs in India: Renewed Vigour in Electric Mobility”, about two-thirds of the planned investments, can potentially materialize in the lithium-ion battery segment alone. Interestingly, despite slower than anticipated EV adoption, investment commitments in the EV industry rose over 3X times in the last 3 years. This in itself is a testament to the immense potential, which electric mobility holds in the country.

Share of planned investments for EV over the next 5-6 years

The planned investments can potentially open up multiple real estate opportunities. It would accelerate land acquisition for setting up of EV and Original Equipment (OE) manufacturing units including lithium-ion batteries. At the same time, with an uptick in EV adoption, increasing need for charging infrastructure would potentially translate into real estate demand for more than 45 million sq ft by 2030. 

Amidst slower than anticipated adoption levels, quantum growth in EV sales highly unlikely

With an overall EV penetration rate of 8% in India, Colliers estimates sales of around 2 million EVs in 2024. Although the pace of EV adoption in the country has been commendable, it has not been as brisk as anticipated. Given the tardy progress, especially when compared with the ambitious desire of having 80 million EVs on road by 2030, attainment of set targets looks far-fetched. Although a 6x growth in average annual EV sales (2025-30) is highly optimistic, an eventual realization of EV goals necessitates concentrated efforts in overhauling the EV landscape of the country.

Growth required in EV sales to achieve 2030 targets 

Factors such as significantly higher EV prices (compared to Internal Combustion Engine vehicles), import dependencies and inadequate public charging infrastructure have limited the EV adoption in the country. Thus, in addition to continued government impetus through subsidies and incentives, it becomes highly critical to significantly improve domestic EV manufacturing capabilities. Moreover, it is imperative to focus on lithium-ion battery & ancillary segments and public private partnerships in augmentation of charging infrastructure on highways, expressways and urban agglomerations across the country.

Potential development of ~13,000 acres of land can materialize by 2030

With the rise in domestic production of EVs, about 13,000 acres of land acquisition and development plans can potentially materialize by 2030. Of the potential land development opportunities, more than 80% is likely to come from lithium-ion battery manufacturers.  This will provide a significant boost to the EV industry in the country and open multiple real estate opportunities. With growing demand, the industrial and warehousing segment is likely to benefit the most. The segment is likely to witness surge in built-to-suit developments curated for both global and domestic EV manufacturing firms. Technology adept warehouses and automation is likely to become more pervasive and accentuate integration across the EV value chain in India.

Read the detailed report here


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Colliers India
Sukanya Dasgupta, Head Marketing and Communications - sukanya.dasgupta@colliers.com

Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 66 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 28 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of $4.5 billion and $98 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors, and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

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