$40 Billion Investment Surge to Transform India's EV Industry
- Muhammad Ahmad
- Dec 11, 2024
- 2 min read
India's EV and battery manufacturing sectors are set to drive unprecedented growth in real estate, powered by $40 billion in investments
The EV revolution is creating a significant real estate boom across India
India’s EV sector will attract $40 billion in investments over the next six years.
Real estate demand of 45 million square feet by 2030, primarily for battery facilities and EV manufacturing.
Sales projected to hit two million EV units in 2024, but achieving 2030 targets requires rapid ecosystem development.
The Indian electric vehicle (EV) industry and its ancillary sectors are poised for a $40 billion investment inflow over the next five to six years. According to a report by Colliers India, nearly two-thirds of these funds will be directed toward lithium-ion battery manufacturing, indicating a pivotal shift in the country's EV ambitions. This investment surge is creating significant opportunities in the real estate sector, including developing EV manufacturing and battery production facilities.
This is a critical development for India’s transition to sustainable transportation. Despite current challenges in achieving widespread EV adoption, the market’s investment momentum signals confidence in the long-term viability of electric mobility. Colliers India projects that by 2030, real estate demand driven by EV-related projects will surpass 45 million square feet, primarily for establishing charging infrastructure and large-scale manufacturing units.
Technical Focus
India’s EV market is projected to see sales growth from 8% penetration to two million units annually by 2024. However, achieving the ambitious target of 80 million EVs by 2030 will necessitate a sixfold increase in yearly sales and significant scaling in battery manufacturing and infrastructure deployment.
Badal Yagnik, CEO of Colliers India, highlighted the importance of affordability and production efficiency: “Reducing production costs, enhancing affordability, and scaling up high-capacity manufacturing units—especially for lithium-ion batteries—are essential to meeting EV targets.” The report also underscores the real estate impact of this transformation, estimating nearly 13,000 acres of land will be needed by 2030 for EV projects, with battery manufacturers driving over 80% of the demand.
Additionally, advanced technologies such as automated warehouses are set to streamline the EV value chain, enabling efficient operations and fostering integration across the sector. The rise of these innovations signals a maturing ecosystem capable of supporting the rapid growth required to meet India’s EV goals.