Saturday, February 24, 2024
Outlook.com
Outlook India
Outlook Business

Electric Vehicle Makers Require 13 Million Square Feet Real Estate Space By 2030 To Meet Output Target: CBRE

EV battery manufacturing facilities would require 2,400 acres of land to accommodate the production of 200 GWh of batteries by 2030

Electric Vehicle Makers Require 13 Million Square Feet Real Estate Space By 2030 To Meet Output Target: CBRE

Press Trust Of India

POSTED ON June 02, 2023 10:10 AM

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 $6.2 billion to date. The year 2022 witnessed strong traction, with global and domestic players announcing investments of over $17.1 billion in the EV industry, compared to $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 $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.

  • Related Articles

    It has taken 1.25 lakh square feet in Prestige Tech Park Jupiter, located close to Marathahalli with a capacity of 2,000 desks

    WeWork India Leases Office Space In Bengaluru

    Avidi offers teachers for immediate, on-demand and customised learning of mathematics, physics, chemistry and biology, along with commerce and arts subjects, primarily for students between the ages...

    Avidii Begins Operations In India And Onboards Tutors

    The financing round saw participation from other existing investors, including Net Graph Investments, Singularity Ventures, LogX Venture Partners, Balesh Sharma, Amit Jain, Vikram Kailas, and Shaji...

    KarmaLife Raises Rs 44 Crore In Pre-Series A Round From Krishna Bhupal’s Family Office