NEW DELHI:The electric Vehicles (EVs) segment in India is likely to see investments worth $12.6 billion (Rs 94,000 crore) over the next five years, while 1,300 acres will be required to set up the targeted 110 GWh battery manufacturing capacity by 2030, said property consulting firm Colliers in a joint report with Indospace titled ‘Electric Mobility in Full Gear’.Most of the investments are planned in the EV components and assembly-line production, followed by investments in battery manufacturing.
Colliers estimates that India will need about 26,800 public charging spots by 2025, requiring space of about 13.5 mn sq ft.Tamil Nadu has emerged as the frontrunner, accounting for 34% share in the total planned investments for EV, followed by Andhra Pradesh and Haryana with a share of 12% and 9%, respectively. The three states will collectively see the highest investments in battery manufacturing, with a 71% combined share.
Currently, 15 states have either approved or notified EV policies, with six more states in the draft stage. elhi, Gujarat, Maharashtra, and Meghalaya are focusing on demand incentives, whereas southern states and Uttar Pradesh are focusing on manufacturer-based incentives. Maharashtra, Delhi and Gujarat will set up industrial parks/clusters for EVs or manufacturing of ancillary components with plug-and-play.
Battery manufacturing companies will be benefited by setting up base in states with incentives such as getting land at concessional rates such as Andhra Pradesh and Tamil Nadu. Electricity charges and capital subsidies are also critical, the report noted.
“The investments are likely to benefit the Indian real estate sector in the form of setting up new or augmenting manufacturing units, industrial parks, and clusters with focus on last mile delivery by E-commerce firms and 3PL companies, government push for electrification of public transport, tax benefits and incentives for first time buyers amongst others,” said the report.
“Real estate players can tap into the opportunity for manufacturing, warehousing, charging stations and dealerships of EVs. The government has a conservative scenario of manufacturing 110 GWh of EV batteries by 2030. This can spawn manufacturing requirement of about 1,300 acres of land pan-India,” said Ramesh Nair, Chief Executive Officer, India & Managing Director, Market Development, Asia, Colliers.
The government is also encouraging automobile manufacturers to ramp up local production of EVs to reduce the country’s dependence on crude oil imports and curb vehicular pollution.
“India has also committed to become carbon neutral by 2070 which will entail meeting several milestones including reducing carbon emission per unit of GDP by 45%. Electrification of the transport sector is pivotal as it is the third major contributor of emissions. While the government has laid down a roadmap incentivizing key stakeholders in the automotive value chain, it is imperative to forge a strong alliance to establish an ecosystem to fuel the electrification of vehicular transport in the country,” said Vimal Nadar, Senior Director & Head of Research, Colliers India.
However, the government needs to reduce the number of permits required for EV manufacturing as well as provide specific tax concessions to the private sector for charging infrastructure, said the report.