The electric vehicles (EVs) segment in India is likely to witness investment of $12.6 billion (₹94,000 crore) across the automotive value chain, over the next five years.
Tamil Nadu is the frontrunner accounting for around 34 per cent share in total planned investments for EV, followed by Andhra Pradesh and Haryana with a share of 12 per cent and nine per cent respectively, said a report by Colliers, a leading real estate consultant.
According to the report – Electric Mobility in Full Gear – Colliers estimates that 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 a focus on last-mile delivery by e-commerce firms, a government push for electrification of public transport, tax benefits and incentives for first time buyers amongst others.
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, it said.
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.
“Government’s target of 30 per cent EV sales by 2030 is ambitious, but achievable goal. In India, the transport sector is currently the third-largest emitter of CO2. So, EVs can be a game-changer. 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,” Ramesh Nair, Chief Executive Officer, India and Managing Director, Market Development, Asia, Colliers.
Colliers estimates that India will need about 26,800 public charging spots by 2025, he said. However, the government needs to reduce the number of permits especially required for EV manufacturing set-up and provide specific tax concessions to the private sector for charging infrastructure in their premises for investments to scale in the EV segment, the report said.
Further, there is a need to establish a dedicated EV park that provides plug and play facilities, developing and retrofitting warehouses for storing lithium-ion batteries, it added.