The Electric vehicle industry in India stands poised on the threshold of big transformation within the next few years. Investment will rise to around $ 40 bn in the next five-six years, with intense emphasis on lithium-ion cells and indigenous manufacturing. Therefore, the investment is in direct sight of accelerating India to full-scale electric mobility, opening vast and widespread opportunity for the EV marketplace and real estate as an ensemble of the economy.
Rise in Investments on EV: Drivers
The latest report by Colliers India titled “EVs in India: Renewed Vigour in Electric Mobility” shows that two-thirds of the investment likely to be made will come into the lithium-ion battery sector, which is a critical segment of electric vehicles. The adoption of EVs was slower than expected, yet investment commitments in the sector have surged more than threefold from the last three years, indicating how optimistic people are about India’s electric vehicle market.
Some high-profile investments are already underway, such as Reliance New Energy’s lithium-ion battery plant in Gujarat, JSW Green Mobility’s EV manufacturing unit in Maharashtra, and Hyundai’s commitment to various EV-related projects in Karnataka. All these investments will transform the Indian EV ecosystem.
Real Estate Opportunities Amidst EV Growth
As the electric vehicle market in India expands, real estate development would be at an all-time high. The requirement of setting up manufacturing units of electric vehicles, as well as lithium-ion batteries, for land would be substantially huge. According to the Colliers report, more than 45 million square feet of real estate demand may increase by 2030. This is likely to happen especially due to the rise in adoption of electric vehicles with demand for EV charging infrastructure and its construction.
Land acquisition for manufacturing units and expansion of charging stations will spur the development of new industrial and warehousing spaces with enough opportunities for real estate developers. About 13,000 acres of land will be needed for EV-related projects by 2030, with over 80% of this demand coming from lithium-ion battery manufacturing.
Overcoming Challenges to EV Adoption
The Indian EV market is promising, but it also faces some challenges that need to be addressed before reaching the 80 million ambitious goal to be achieved by 2030. India has still a long way to achieve its 8% in terms of penetration rate; while estimated two million sales in 2024 are anticipated in the EV segment. Growth, though positive, is less than what is anticipated at this time.
India will need a sixfold increase in electric vehicle sales every year between 2025 and 2030 to meet the 2030 target. Other reasons why it lags include higher prices than its internal combustion engine counterpart, high dependency on imports, and no charging infrastructure. All this shows that besides incentives and subsidies by the government, scaling up domestic manufacturing capabilities-especially lithium-ion batteries-will play an important role in fast-tracking adoption.
Government Support and Strategic Measures for EV Growth
Government policies, subsidies, and incentives will continue to be the driving factors to speed up the transition. However, to actually meet the 30 percent EV penetration target by 2030, the focus also needs to be on making electric vehicles more affordable, and reduce production costs, among others. Public-private partnership for high-way expressway and urban area expansions of charging networks is indispensable to make electric vehicles accessible and usable in the day-to-day operations of vehicle users.
Large-scale domestic production of EVs and expansion of the lithium-ion battery industry will be crucial drivers of long-term growth. The activities, with significant expansion in charging stations, will facilitate the adoption of EVs by consumers and businesses.
Effect on Industrial Real Estate of India
The industrial and warehousing segment would be the most beneficiary of this trend, though built-to-suit developments would only accelerate with domestic and international in-house EV manufacturers’ demand. Technology-driven warehouses and automation would become more common with improvements in efficiency and integration of the EV value chain in India.
Growth in the EV sector will positively influence the real estate market, bringing state-of-the-art warehouses and distribution centers. All this will be to meet growing demand for EV-related goods such as batteries, components, and finished vehicles.
The Future Ahead: Bright Prospects for EVs and Real Estate
The Indian subcontinent is going to break all records in its major electric vehicle breakthrough. India expects investment of $40 billion, thus giving a push to the growth of the economy while making jobs and generating higher demand in the real estate market. Scaling up its manufacturing capacity as adoption grows, India would dominate the global EV landscape.
Real estate, in particular, is going to be a key element in driving this growth forward because there will always be the need for land, space for industries, and more importantly, charging infrastructure. This is where developers who focus their efforts on developing EV-friendly features such as charging stations and dedicated parking areas will have the upper hand over other developers in this competitive new market.
In Conclusion, with such huge investment, the future of electric vehicles seems bright in India, making it a sure bet for the EV and real estate sectors. Manufacturing, then infrastructure, and lastly pricing will be what propel it to the leadership role in this very important shift to electric mobility. As this industry explodes, real estate opportunities expand, benefiting developers and their investors.
Refer :
Economic Times, Link to article
Also read : Electric Vehicle Growth in India: Key Schemes and Initiatives by the Ministry