UP, Maharashtra frontrunners in EV charging infrastructure: Report

New Delhi, June 9 (KNN) Uttar Pradesh and Maharashtra are leading manufacturing of the EV charging infrastructure among all the States and UTs in India, as per Electric Vehicles in India – New Wheels on the Roads’ report by CBRE South Asia.

The real estate consulting firm revealed in its report that the adoption of electric vehicles leading to the requirement for battery manufacturing is estimated to drive demand for 2,400 acres of real estate by 2030.

The report focuses on the real estate strategies for various stakeholders in the electric vehicle manufacturing lifecycle.

It further points out that the current primary clusters for Lithium-ion Battery (LiB) manufacturing exist in Chennai, Hyderabad, Pune, Prantij, Surat, Mandal, Delhi-NCR, Gurgaon, and Mohali.

Additionally, Maharashtra has the highest count of sanctioned EV chargers, with 317 under Phase II of the FAME India scheme, followed by Gujarat with 278 EV chargers.

India is currently dependent on raw material imports for the manufacturing of lithium-ion cells, which account for 77 per cent of the total manufacturing cost.

However, this is set to change with the discovery of a 5.9 million tonne lithium reserve in Jammu and Kashmir’s Reasi District in February this year.  This is expected to reduce India’s reliance on imported lithium significantly.

Furthermore, the real estate requirements of manufacturing facilities of two- and four-wheeler is estimated to be around 13 million sqft by 2030 as a result of the government’s EV adoption targets.

It is also expected that by 2030, the real estate requirement will allow a production capacity of approximately 4 million four-wheelers and 23 million two-wheelers.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, 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.”

“By 2030, we anticipate a surge in demand for real estate, with a requirement of around 13 million sqft dedicated to EV manufacturing facilities alone. The cumulative investment value in EVs over the last three years demonstrates the immense financial commitment and confidence placed in this sector. This investment not only signifies the financial potential of EVs but also underscores the transformative power they hold in shaping the future of mobility.”

Rami Kaushal, MD, Consulting & Valuation Services, India, Middle East & Africa, CBRE said, “The future of the EV industry is bright, and real estate will play a pivotal role in shaping its trajectory. As demand for EV manufacturing facilities, charging infrastructure, and associated services expands, the real estate sector will need to adapt and provide the necessary infrastructure and spaces to accommodate this growth.”  (KNN Bureau)