Pune leads automotive industrial leasing with 28% share

Pune: The automotive and ancillary sector accounted for 28% of industrial leasing in the city between 2024 and the first half of 2026, making Pune the leading market among major cities. The sector leased around 15 lakh sqft of the total 54 lakh sqft recorded across the top markets, ahead of Delhi-NCR and Chennai, according to a CBRE report.Maharashtra’s automotive industry is expanding into electric vehicles and associated technologies, with Chakan-Talegaon corridor at the centre of this ecosystem. The belt is home to around 7,000 component manufacturers and 23 automobile manufacturers, according to industry estimates.Traditional industries, including automobiles and auto components, electrical and electronics, accounted for 47% of industrial leasing in Pune between 2020 and 2025, according to real estate research firm Savills. Chakan-Talegaon belt alone recorded 1.9 crore sqft of leasing by the automotive and component sector during this period.“Over time, the sector is expected to move beyond its traditional cost advantage towards a capability-led ecosystem anchored in innovation, supply chain resilience, and export competitiveness,” said Srinivas N, managing director of the industrial and logistics division at Savills India.Demand for automotive warehousing is led by tyre manufacturers, which accounted for 27% of the 1.2 crore sqft leased nationally, followed by passenger vehicle manufacturers and ancillary component makers, each with a 19% share. Among tier-I cities, Mumbai recorded the highest warehousing rentals at Rs 37-42 per sqft a month, followed by Pune at Rs 33-38.“India’s warehousing growth remains concentrated in just a few markets. Also, rental appreciation and vacancy levels vary markedly across cities. Delhi, Mumbai and Pune together accounted for nearly 58% of cumulative absorption across the top eight cities,” said Peush Jain, managing director, commercial leasing and advisory, Anarock Group.The concentration of industrial activity in Chakan has, however, put pressure on local infrastructure. Industry bodies and officials said automobile manufacturing and ancillary units have spread beyond the MIDC area, bringing the belt under multiple administrative jurisdictions. State govt has formed a task force under the district collector to address infrastructure gaps, with several development works under way.