- Investments of Rs 3.4 lakh crore in the electric vehicle industry over the next 8 years
- This will also boost the real estate sector
- Colliers India report reveals
With growing interest in electric vehicles (EVs) in the country, investors are also turning their attention to this sector. They are considering investments in EVs and related industries. According to a recent report by real estate consultant Colliers India, domestic and foreign companies are expected to invest Rs 3.4 lakh crore in the sector over the next eight years. The report mentions that EV usage in India currently stands at 8%, with sales of EVs estimated to reach around 2 million units in 2024. However, it also noted that progress towards the goal of increasing EVs’ share in total vehicle sales to 30% by 2030 has not been as fast as expected.
Despite the relatively low but growing adoption of EVs, the report suggests that the sector will receive significant investments, with companies expected to invest about $40 billion (approximately Rs 3.4 lakh crore) by 2030. Of this, $27 billion will go into the production of lithium-ion batteries, and $9 billion will be invested in the production of EVs and Original Equipment (OE) parts. The influx of investments into the EV sector could also benefit the real estate industry, particularly in the warehousing sector, which is expected to see substantial growth. The report indicates that the establishment of plants for manufacturing EVs, OEs, and lithium-ion batteries could accelerate land acquisition and plant setup processes.
India has set a goal to achieve 30% electric mobility by 2030, which would require about 80 million EVs. However, despite steady growth in sales and government support, progress towards this target has been slow. The current market share of EVs is approximately 8%, with the total number of EVs around 5 million. To achieve the target set by the government, the report suggests that EV usage across various categories needs to grow substantially. It also recommends further subsidies, tax incentives, encouragement for domestic manufacturing, and improvements in charging infrastructure to boost EV sales across different segments.
