Asia-Pacific automakers face about US$95 billion in potentially obsolete internal combustion engine (ICE) assets as electric vehicle (EV) production accelerates, according to CBRE.
The real estate consultancy said its analysis of 15 major listed automotive groups found that around US$354 billion in fixed assets globally — including property, plants and equipment — remained tied to ICE manufacturing. About a quarter of that value is located in Asia Pacific.
With global EV output expected to overtake ICE vehicle production within five years, CBRE warned that some factories and equipment could become stranded unless repurposed or sold.
“Asset-heavy automakers with tight profit margins should look to recycle capital through sale-and-leasebacks and disposals,” CBRE Asia-Pacific head of research Ada Choi said.
The transition is also strengthening Southeast Asia’s position as an EV manufacturing hub, with Thailand, Vietnam, Indonesia, Singapore and Malaysia attracting investment supported by incentives, tariff considerations and local supply-chain requirements.
CBRE said automakers were increasingly adopting asset-light models, including partnerships with third-party logistics providers and institutional property investors, to finance power, automation and sustainability upgrades.
“Real estate is one of the key levers auto occupiers can pull to turn capital trapped in legacy assets into tomorrow’s EV investment capacity,” CBRE Asia-Pacific industrial and logistics leasing head Michael Bowens said.
Leave a comment