India's EV Sector Set to Attract $40 Billion, Sparking Real Estate Boom

CIOTechOutlook Team | Thursday, 12 December 2024, 02:38 IST

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The electric vehicle (EV) industry and related sectors in India are set to draw almost $40 billion in investments in the coming five to six years, generating substantial prospects for the real estate market, as per Colliers India. The document, named “EVs in India: Renewed Vigour in Electric Mobility,” emphasizes that almost two-thirds of these investments are projected to focus on the lithium-ion battery sector. 

Even with slower-than-anticipated EV adoption, the sector has experienced a threefold increase in investment pledges in the last three years, indicating a resurgence of optimism regarding India’s electric mobility future.

The expected investments are likely to generate significant real estate demand, especially for establishing EV and original equipment (OE) manufacturing plants, such as lithium-ion battery production facilities. Colliers predicts that the rising popularity of EVs will create a need for more than 45 million square feet of real estate by 2030, mainly to facilitate the development of EV charging stations.

In India, with an EV adoption rate of 8%, sales are expected to hit around two million units by 2024. Nevertheless, the report warns that the ambitious goal of achieving 80 million EVs on Indian roads by 2030 could encounter obstacles because of the present rate of adoption. Reaching this objective will necessitate a sixfold boost in yearly EV sales from 2025 to 2030, alongside targeted actions to change the EV landscape.

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