NEW DELHI: Domestic and foreign firms have pledged a massive Rs3.4 lakh crore ($40 billion) in investments for India’s electric vehicle (EV) and ancillary industries over the next six years, real estate consultancy Colliers India revealed on Wednesday.
This figure, which equates to nearly one-fifth of India’s entire automotive market in 2023, highlights the ambitious plans to electrify the country’s transportation sector.
The report, EVs in India: Renewed Vigour in Electric Mobility, sheds light on India’s evolving EV ecosystem. With an 8 per cent penetration rate, the sector saw estimated sales of around 2 million EVs in 2024 – a commendable but slower-than-expected pace.
Colliers India noted that about $27 billion (Rs2.3 lakh crore) of the planned investment is earmarked for lithium-ion battery manufacturing, while $9 billion will fund EV and original equipment (OE) production. However, the consultancy did not disclose how much of these commitments have already materialised.
“The deployment of these planned investments could create significant opportunities in the real estate sector, especially in industrial and warehousing spaces, accelerating land acquisitions and enabling the establishment of manufacturing units for EVs and lithium-ion batteries,” the report stated.
80 mn EVs target
Despite the ambitious targets of achieving 30 per cent electric mobility with 80 million EVs on Indian roads by 2030, the report expressed concern over the “tardy progress.” It emphasised that, with only 5 million EVs currently in use, achieving this target will require exponential growth in adoption rates across all categories.
The report also highlighted that EV adoption has been the highest among three-wheelers, particularly e-rickshaws, due to the lower operational costs offsetting higher purchase prices. However, significant strides in reducing the price gap between EVs and internal combustion engine (ICE) vehicles – currently ranging from 20-50 per cent – will be key to driving adoption across personal and heavy vehicle categories.
Additionally, Colliers India called for focused demand and supply-side measures, including subsidies, tax incentives, enhanced domestic manufacturing, and extensive charging infrastructure, to address the challenges.
While the target of 80 million EVs by 2030 may seem distant, Colliers remained cautiously optimistic that a slightly delayed but eventual realisation is possible with sustained policy support and private-sector commitment.
