Report | Adaptive Spaces

Making It & Moving It

Making it: Lighter and leaner manufacturing plants
Moving it: New geographies, new requirements

What’s New in Automotive Manufacturing & Logistics Real Estate

July 30, 2026 5 Minute Read

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The Asia Pacific automotive industry is in the midst of a fundamental structural transformation. Global Electric Vehicle (EV) production is accelerating rapidly and is expected to surpass Internal Combustion Engine (ICE) vehicle manufacturing as the dominant production segment within the next five years.

CBRE’s analysis of 15 major listed automotive groups with a strong Asia Pacific presence shows that approximately US$354 billion of their fixed assets – including property, plant and equipment – are tied to ICE production. Around one-quarter of these ICE-linked assets are in Asia Pacific, representing around US$95 billion in value. With global EV output expected to surpass ICE production in the coming years, a significant portion of this asset base risks becoming stranded unless it can be repurposed or divested.

This shift is compelling automotive companies to undertake a comprehensive reassessment of their manufacturing footprint, supply chain networks, and real estate requirements across the region.

Against this backdrop, this report examines the automotive sector's manufacturing and logistics real estate strategy through two lenses: