Electric Vehicle manufacturers to require 13 million square feet real estate space by 2030

New Delhi: Electric vehicle manufacturers will need around 13 million square feet of real estate space by 2030 to make targeted 23 million units of two-wheelers and 4 million units of four-wheelers, according to CBRE.

Real estate consultant CBRE South Asia released a report, 'Electric Vehicles in India - New Wheels on the Roads', on Thursday that focuses on the trends, growth, and influence of electric vehicles (EVs) on the real estate sector in India. "Real estate requirements of manufacturing facilities of 4-wheeler and 2-wheeler (4W and 2W) electric vehicles is estimated to be around 13 million square feet by 2030 as a result of the government's EV adoption targets," it said.

Moreover, EV battery manufacturing facilities would require 2,400 acre of land to accommodate the production of 200 GWh of batteries by 2030. By 2030, this real estate requirement will allow a production capacity of about 4 million units of 4Ws and 23 million units of 2Ws. The Indian EV market is expected to grow at a Compound Annual Growth Rate (CAGR) of 49 per cent between 2021-2030 and cross annual sales of 17 million units by 2030. The consultant noted Built-to-Suit (BTS) and leased facilities are largely preferred by EV manufacturers at present due to ease of capital deployment, flexibility in lease terms, speed to market and location advantages. However, an owned facility provides more scope for customisation, save monthly rental outgoings and has better prospects for land price appreciation, it added.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa at CBRE, said, "As we look ahead, the intersection of real estate and the EV sector presents exciting opportunities and challenges. The rapid growth in EV manufacturing is set to revolutionise the automotive industry, and it will undoubtedly have a profound impact on the real estate market." The cumulative investment value in EVs over the last three years demonstrates the immense financial commitment and confidence placed in this sector, he said. "This investment not only signifies the financial potential of EVs but also underscores the transformative power they hold in shaping the future of mobility," Magazine said. The report mentioned that policy initiatives by the union and state governments have enabled the creation of an indigenous EV manufacturing ecosystem by incentivising fresh investments from global/domestic players.

For the current year, the EV sector has recorded investment announcements of about USD 6.2 billion to date. The year 2022 witnessed a strong traction, with global and domestic players announcing investments of over USD 17.1 billion in the EV industry, compared to USD 4.4 billion in 2021. During the 2020-2023 period (year to date), Maharashtra and Tamil Nadu led EV investments with a 15 per share each of the cumulative USD 28.8 billion investment. Karnataka accounted for 11 per cent share, Gujarat 8 per cent, and Uttar Pradesh and Telangana recorded 7 per cent share each.