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EV, ancillary industries in India can attract $40 billion worth investments in 5-6 years

December 11, 2024 09:52 AM

New Delhi, Dec 11 || There is a potential $40 billion investment opportunity for the development of electric vehicles (EVs) and ancillary industries in India over the next 5-6 years, a report showed on Wednesday.

About two-thirds of the planned investments can potentially materialise in the lithium-ion battery segment alone, said the report by Colliers, a professional services and investment management company.

The deployment of these funds will rely upon successful implementation of government policies, charging infrastructure ramp-up and domestic manufacturing capacity scale-up, it added.

At the same time, with an uptick in EV adoption, increasing need for charging infrastructure would potentially translate into real estate demand for more than 45 million square feet by 2030.

The investment commitments in the domestic EV industry rose over 3 times times in the last three years.

With an overall EV penetration rate of 8 per cent in India, Colliers estimates sales of around 2 million EVs in 2024.

 

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