Land requirement of about 1,300 acres to set up the targeted 110 GWh battery manufacturing capacity by 2030
Gurugram – In its latest joint report with Indospace titled ‘Electric Mobility in Full Gear’, Colliers estimates that the Electric Vehicles (EVs) segment in India is likely to witness investments of USD12.6 billion or INR94,000 crore across the automotive value chain, over the next five years.
The investments are likely to benefit the Indian real estate sector in the form of setting up new or augmenting manufacturing units, industrial parks, and clusters with focus on last mile delivery by E-commerce firms and 3PL companies, government push for electrification of public transport, tax benefits and incentives for first time buyers amongst others.
Tamil Nadu is the frontrunner accounting for about 34% share in total planned investments for EV, followed by Andhra Pradesh and Haryana with a share of 12% and 9% respectively.
Currently, 15 Indian States have either approved or notified EV policies, with 6 more states in the draft stage. States like Delhi, Gujarat, Maharashtra, and Meghalaya are focusing on demand incentives, whereas southern states and Uttar Pradesh are focusing on manufacturer-based incentives. States like Maharashtra, Delhi and Gujarat having strong demand side incentives should have provisions to set up industrial parks/clusters for EV or manufacturing of ancillary components with plug-and-play.
“Government’s target of 30% electric vehicle sales by 2030 is an ambitious, but an achievable goal. In India, the transport sector is currently the third largest emitter of CO2. So, EVs can be a game changer. Real estate players can tap into the opportunity for manufacturing, warehousing, charging stations and dealerships of EVs. The government has a conservative scenario of manufacturing 110 GWh of EV batteries by 2030. This can spawn manufacturing requirement of about 1,300 acres of land pan-India,” said Ramesh Nair, Chief Executive Officer, India & Managing Director, Market Development, Asia, Colliers.