India has pledged to reduce its carbon emissions, taking a step toward sustainability. India vowed to achieve net-zero carbon emissions by 2070 at the recently concluded CoP26 summit. The transportation sector in India is currently the third-largest CO2 emitter. This has resulted in a greater need for GVs.
According to a joint analysis by Colliers India and Indospace, the green vehicle market is estimated to draw investments of Rs 94,000 crore over the next five years, generating economic prospects in the real estate sector. According to the report ‘Electric Mobility in Full Gear,’ India’s Green Vehicle (GV) business is still in its infancy, but it is expected to grow as a result of government initiatives and a shift toward climate change recognition.
If GV space in India is expected to attract investments of Rs. 94,000 crore ($12.6 billion) across the value chain over the next five years. Then landlords have plenty of options ranging from production to charging infrastructure. By 2030, a total of 1300 acres of land will be required across India to build 110 GWh of battery manufacturing capacity. By 2025, India will require approximately 26,800 public charging places, requiring approximately 13.5 million square feet of space.
At busy sites, landlords might outsource dedicated charging stations to charging service providers. They can also work with billing service providers on a revenue-sharing approach. Developers have plenty of room to build retail and recreation venues around charging stations as well.
GV policies have been approved or notified in 15 Indian states, with six more governments in the draught stage. Demand incentives are the focus of states like Delhi, Gujarat, Maharashtra, and Meghalaya, whilst manufacturer-based incentives are the focus of southern states. States with significant demand-side incentives, such as Maharashtra, Delhi, and Gujarat, should have arrangements in place to create up industrial parks/clusters for GV or manufacturing of auxiliary components with plug-and-play.
So, Manufacturing, warehousing, charging stations, and GV dealerships are all opportunities for real estate players. Many developers have already begun to include charging facilities for electric vehicles in their developments.
Prof. Muzammil Ahmed