CBRE South Asia Pvt. Ltd., a real estate consulting firm, has released a report titled “Electric Vehicles in India – New Wheels on the Roads.” The report explores the impact of electric vehicles (EVs) on the Indian real estate sector, highlighting key trends and growth.
According to the report, state governments are implementing policies to encourage the development of a domestic EV manufacturing ecosystem, attracting investments from global and domestic players. From 2020 to H1 2023, the total investment in EVs in India reached $28.8 billion. Maharashtra and Tamil Nadu emerged as leading states, each capturing a 15 per cent share, while Karnataka secured 11 per cent. Gujarat attracted $2.3 bn with an 8 per cent share of the total cumulative investment, while Uttar Pradesh and Telangana had a 7 per cent share each.
Key investment announcements in Q1 2023 include Gogoro Belrise Industries investing about $2.5 billion in a charging infrastructure manufacturing facility, Ola Electric committing about $0.9 billion for a battery manufacturing facility, and Tauschen E-mobility investing about $0.2 billion in an EV manufacturing facility.
The report projects a real estate requirement of around 13 million sq. ft. by 2030 for 4-Wheeler and 2-Wheeler EV manufacturing facilities, driven by government EV adoption targets. Additionally, EV battery manufacturing facilities will require 2,400 acres of land to produce 200 GWh of batteries by 2030. The EV sector has witnessed investments of about $6.2 billion this year, and the Indian EV market is expected to grow at a compound annual growth rate of about 49 per cent between 2021 and 2030, reaching annual sales of 17 million units by 2030.
Uttar Pradesh, Maharashtra, and Karnataka led in registered EV annual sales in 2022, collectively accounting for 40 per cent of the overall sales volume. EV manufacturers and e-mobility start-ups are concentrating their presence in primary automotive clusters across India.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, highlighted the exciting opportunities and challenges that arise at the intersection of real estate and the EV sector. Magazine emphasised that the rapid growth in EV manufacturing is poised to revolutionise the automotive industry and will significantly impact the real estate market.
According to Magazine, CBRE anticipates a surge in real estate demand by 2030, with a requirement of approximately 13 million square feet solely dedicated to EV manufacturing facilities. The cumulative investment value in EVs over the past three years demonstrates the substantial financial commitment and confidence placed in this sector. This investment not only signifies the financial potential of EVs but also underscores their transformative power in shaping the future of mobility.
Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India, emphasised the promising future of the EV industry and the significant role real estate will play in shaping its trajectory. Chandnani stated that as the demand for EV manufacturing facilities, charging infrastructure, and associated services continues to expand, the real estate sector must adapt and provide the necessary infrastructure and spaces to accommodate this growth.