Electric vehicle market is likely to attract investments of Rs 94,000 crore over the next five years and is expected to generate business opportunities in the real estate sector, according to a joint report by Colliers India and Indospace.
The report ‘Electric Mobility in Full Gear’ mentioned that the electric vehicle (EV) industry in India is currently at a nascent stage but it is likely to grow, backed by government initiatives and a move towards recognising climate change.
“India is taking a step towards sustainability and has vowed to cut its carbon emissions. At the recently concluded CoP26 summit, India pledged to reach net-zero carbon emissions by 2070. In India, the transport sector is currently the third-largest emitter of CO2. This is leading to increased thrust on EVs in India,” it said.
Property consultant Colliers estimated that over the next five years, the EV space in India is likely to see investments of Rs 94,000 crore (USD 12.6 billion) across the value chain.
“There is ample opportunity for landlords across the spectrum from manufacturing to charging infrastructure,” it said.
Significant land around 1300 acres will be required pan-India to set up 110 GWh battery manufacturing capacity by 2030.
The consultant estimated that India will need about 26,800 public charging spots by 2025, requiring space of about 13.5 million square feet.
“Landlords can outsource dedicated charging stations to charging service providers at busy locations. They can also enter into a revenue share model with charging service providers. There is also ample scope for developers to develop retail and recreation spaces in proximity to charging stations,” the report said.
Currently, 15 Indian states have either approved or notified EV policies, with six more states in the draft stage. States like Delhi, Gujarat, Maharashtra, and Meghalaya are focusing on demand incentives, whereas southern states and Uttar Pradesh are focusing on manufacturer-based incentives.
States like Maharashtra, Delhi and Gujarat having strong demand-side incentives should have provisions to set up industrial parks/clusters for EV or manufacturing of ancillary components with plug-and-play, the consultant advised.
“Real estate players can tap into the opportunity for manufacturing, warehousing, charging stations, and dealerships of EVs,” Colliers India Chief Executive Officer Ramesh Nair said.
Many developers have already started to make provision of charging stations for electric vehicles in their projects.
Mumbai-based Kalpataru is already offering EV-ready parking in its upcoming projects. To enable parents’ peace of mind and security of very young children who are out playing on their own, Kalpataru is working with new technologies that enable effective remote parental supervision and control.