CBRE: Electric Vehicle Manufacturers to Seek 13 Million Sq Ft of Real Estate Space by 2030 for Production Goals

Electric vehicle manufacturers in India will require approximately 13 million square feet of real estate space by 2030 to meet their targeted production of 23 million units of two-wheelers and 4 million units of four-wheelers, according to a report by real estate consultant CBRE South Asia.

The report, titled 'Electric Vehicles in India - New Wheels on the Roads,' highlights the trends, growth, and impact of electric vehicles on the country's real estate sector.

CBRE estimates that the manufacturing facilities for electric vehicles, both two-wheelers and four-wheelers, will need about 13 million square feet of real estate by 2030, driven by the Indian government's targets for EV adoption.

Additionally, the report states that the production of 200 GWh of EV batteries by 2030 would require approximately 2,400 acres of land for battery manufacturing facilities.

These real estate requirements are projected to support a production capacity of around 4 million units of four-wheelers and 23 million units of two-wheelers by 2030.

The Indian EV market is expected to grow at a Compound Annual Growth Rate (CAGR) of 49 percent between 2021 and 2030, with annual sales predicted to reach 17 million units by 2030.

Currently, electric vehicle manufacturers primarily prefer Built-to-Suit (BTS) and leased facilities due to the ease of capital deployment, flexible lease terms, speed to market, and location advantages. However, owning a facility allows for customization, cost savings on monthly rentals, and potential appreciation of land prices.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa at CBRE, emphasized the significant impact of the EV sector on the real estate market, stating that the rapid growth in EV manufacturing will revolutionize the automotive industry.

The report also highlights the policy initiatives by the central and state governments, which have encouraged the development of an indigenous EV manufacturing ecosystem by attracting investments from global and domestic players.

In terms of investment, the EV sector in India has witnessed significant announcements, with approximately USD 6.2 billion recorded for the current year. In 2022, there was a substantial increase, with global and domestic players announcing investments exceeding USD 17.1 billion, compared to USD 4.4 billion in 2021.

From 2020 to the present, Maharashtra and Tamil Nadu have been the leading states in terms of EV investments, accounting for 15 percent each of the cumulative USD 28.8 billion invested. Karnataka, Gujarat, Uttar Pradesh, and Telangana also contributed to the EV investments.