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The Indian electric vehicle (EV) and ancillary industries are projected to attract investments worth approximately USD 40 billion over the next five to six years, creating significant opportunities for the real estate sector, according to a report by Colliers India.

Colliers’ latest analysis reveals that nearly two-thirds of the proposed investments are likely to be directed toward the lithium-ion battery segment. Despite the slower-than-expected EV adoption rate, investment commitments in the EV sector have surged more than threefold over the last three years, underscoring the industry’s growth potential.

The report emphasises that these investments are set to accelerate land acquisition for the establishment of EV and Original Equipment (OE) manufacturing units, including facilities for lithium-ion battery production. Furthermore, the increasing adoption of EVs is expected to drive demand for more than 45 million square feet of real estate for charging infrastructure by 2030.

Colliers estimates an EV penetration rate of 8% in India, with sales projected to reach around 2 million units in 2024. However, the ambitious goal of achieving 80 million EVs on Indian roads by 2030 appears challenging due to the current pace of adoption. The report notes that a sixfold increase in annual EV sales between 2025 and 2030 will require focused strategies to transform the nation’s EV ecosystem.

“Demand and supply incentives remain crucial for faster EV adoption,” said Badal Yagnik, CEO, Colliers India. “A multifold increase in sales can be achieved by reducing production costs and enhancing affordability. Prioritizing high-capacity original equipment manufacturing units and large-scale lithium-ion battery production is vital for accelerating growth.”

Also Read | Challenges and Opportunities: The Future of Electric Vehicles in India

The report highlights that domestic production growth in the EV sector could result in the acquisition and development of approximately 13,000 acres of land by 2030, with over 80% of this demand expected to come from lithium-ion battery manufacturers.

This growth is set to benefit the industrial and warehousing sectors, with a surge in built-to-suit developments tailored for both global and domestic EV manufacturers. The integration of technology-driven warehouses and automation across the EV value chain is also anticipated to gain momentum, strengthening India’s position in the global EV market.

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