Auto And Ancillary Sector Accounts For 13 Percent Of India’s Built-Up Industrial Demand: CBRE Report
New Delhi, November 5, 2026: The automotive and ancillary sector leased approximately 5.4 million square feet of industrial space between 2024 and the first half of 2026, accounting for roughly 13 percent of India’s total built-up industrial demand, according to a press release issued by CBRE South Asia Pvt. Ltd.
Leasing activity during this period was led by Pune with a 28 percent share, followed by Delhi-NCR at 25 percent and Chennai at 20 percent. Domestic occupiers drove 57 percent of the industrial demand, while Asia-Pacific and EMEA-based occupiers accounted for 26 percent and 15 percent, respectively. Large-format facilities dominated space take-up in H1 2026, with leases of 100,000 square feet and above representing 84 percent of total transactions.
The surge in real estate demand coincides with expanding national production. Vehicle manufacturing reached 35 million units in FY2026, while automotive exports hit a record USD 26 billion, reflecting a 14.7 percent year-on-year increase. Overall, the automotive sector accounts for approximately 49 percent of India’s manufacturing GDP.
Commenting on the sector’s evolution, Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa, CBRE, said: “India’s automotive manufacturing base is becoming more diversified. Domestic demand continues to provide scale, while stronger exports, EVs and advanced components are broadening the sector’s manufacturing base. This is also changing the real estate equation. As manufacturers plan for larger, more technologically advanced facilities within integrated manufacturing ecosystems, competitiveness will depend on the availability of industrial land, reliable infrastructure and utilities, skilled talent, supplier networks and logistics connectivity. Locations that can bring these elements together at scale will be better placed to attract long-term investment and deepen India’s integration with global value chains.”
In terms of warehousing, the sector leased 12.4 million square feet between 2021 and H1 2026, led by Chennai, Delhi-NCR, and Bengaluru. Tier manufacturers, passenger vehicle makers, and ancillary component producers together generated 69 percent of this warehousing demand.
Regarding operational requirements, Rami Kaushal, Managing Director, Consulting and Valuation Services, India, Middle East and Africa, CBRE, said: “OEMs need integrated campuses that can support long-term capacity expansion, component manufacturers require proximity to anchor facilities, and battery occupiers require specialized infrastructure with high power availability and controlled production environments. Stakeholders who can facilitate clear land titles, reliable utilities, supplier access and efficient distribution networks, and develop clusters that foster a cohesive ecosystem, will be best positioned to unlock the next stage of the sector’s expansion.”
