TL;DR
The automotive sector, particularly EV-related investments, significantly boosted India's logistics and industrial real estate growth in H1 2026, nearly doubling leasing activity.
India's logistics and industrial real estate sector maintained robust growth in the first half of 2026, significantly driven by demand from the automotive industry. According to Cushman & Wakefield's H1 2026 Logistics & Industrial MarketBeat report, the automotive sector emerged as a key growth driver, accounting for 4.8 million square feet (MSF) of leasing volume, representing 13% of the total demand.
Leasing activity by automotive occupiers nearly doubled compared to H1 2025, with industrial facilities contributing approximately 63% of the sector's leasing. This surge is largely attributed to accelerated investments across the electric vehicle (EV) value chain, indicating a strong link between the expansion of EV manufacturing and the demand for industrial and warehousing spaces. Delhi NCR led the overall leasing activity with a 24% share, followed by Chennai (17%) and Pune (16%), highlighting key regional growth hubs for the automotive and logistics sectors.
