Bengaluru: Electric vehicles (EV) and ancillary industries open up the potential for realty development across 13,000 acres of land (or almost 566.3 million square feet) in India by 2030, real estate consultant Colliers India said in a report on Wednesday.
As of October this year, 2,200 acres have been acquired for EV and battery manufacturing, the report said. The increasing need for charging stations alone can potentially translate into real estate demand of more than 45 million square feet by 2030, it stated.
This is based on the estimate of EV investments worth $40 billion by 2030. About half of the planned investments are expected to be Gujarat and Karnataka combined.
The realty surge will be driven by the potential rise in domestic production of EVs and traction in giga-factories for battery manufacturing, due to which automobile players and original equipment manufacturers will require large land parcels.
Of the potential land development opportunities, more than 80% is likely to come from lithium-ion battery manufacturers, Colliers stated.
“Residential and commercial developers too are likely to increasingly integrate dedicated charging stations and parking spots for EVs within their projects,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.
Still, the report pointed out quantum growth in EV sales is highly unlikely amidst slow adoption levels.
“Although the demand for EVs has picked up in recent years, the target of achieving 30% penetration by 2030 looks like an uphill task. While demand and supply incentives will continue to play a pivotal role in faster adoption of EVs, a multifold increase in EV sales can be fast-tracked by the reduction in production costs and improving affordability with respect to EV price points,” said Badal Yagnik, Chief Executive Officer, Colliers India.
The current penetration rate is 8%, with an estimated 2 million EVs to be sold in 2024.