Manufacturing And Auto Sectors Drive India's Logistics Market
WAREHOUSING & LOGISTICS

Manufacturing And Auto Sectors Drive India's Logistics Market

A Cushman & Wakefield report said manufacturing, automobile and third-party logistics companies were the main drivers of demand in India's logistics and industrial real estate market in H1 2026. Gross leasing across the top eight cities reached 36.2 million (mn) square feet in H1 2026, the highest ever recorded for the first half of a year.

Overall leasing rose 18 per cent year-on-year and was two per cent higher than the second half of 2025, supported by strong activity across warehousing and industrial facilities. Warehouse leasing remained the largest segment at 24.3 mn square feet, accounting for 67 per cent of total activity, while industrial leasing approached 12 mn during the period.

Third-party logistics operators accounted for 12.2 mn of leasing and 34 per cent of total demand, while engineering and manufacturing companies followed with 10.2 mn, contributing 28 per cent of overall leasing. Together those two sectors represented more than 60 per cent of total absorption in H1 2026, underscoring their central role in the market.

The automobile sector emerged as a key growth driver, accounting for four point eight mn of leasing, or 13 per cent of total demand, with occupier leasing nearly doubling compared with H1 2025. Geographically, Delhi NCR recorded the highest leasing at eight point seven mn, followed by Chennai at six point one mn and Pune at five point nine mn.

Delhi NCR also posted the strongest year-on-year growth at 69 per cent, while Chennai and Pune recorded increases of 39 per cent and 32 per cent respectively. Cushman & Wakefield managing director for logistics and industrial services said occupier demand had remained resilient despite geopolitical tensions, and firms had adopted a more measured approach to decision making while maintaining expansion plans.

The report said demand was expected to remain supported in H2 2026 by seasonal activity from e-commerce, retail and automobile sectors, though global developments could influence the pace of corporate decisions. The analysis suggested the industrial and logistics market would continue to reflect long-term confidence in India's manufacturing and consumption story.

A Cushman & Wakefield report said manufacturing, automobile and third-party logistics companies were the main drivers of demand in India's logistics and industrial real estate market in H1 2026. Gross leasing across the top eight cities reached 36.2 million (mn) square feet in H1 2026, the highest ever recorded for the first half of a year. Overall leasing rose 18 per cent year-on-year and was two per cent higher than the second half of 2025, supported by strong activity across warehousing and industrial facilities. Warehouse leasing remained the largest segment at 24.3 mn square feet, accounting for 67 per cent of total activity, while industrial leasing approached 12 mn during the period. Third-party logistics operators accounted for 12.2 mn of leasing and 34 per cent of total demand, while engineering and manufacturing companies followed with 10.2 mn, contributing 28 per cent of overall leasing. Together those two sectors represented more than 60 per cent of total absorption in H1 2026, underscoring their central role in the market. The automobile sector emerged as a key growth driver, accounting for four point eight mn of leasing, or 13 per cent of total demand, with occupier leasing nearly doubling compared with H1 2025. Geographically, Delhi NCR recorded the highest leasing at eight point seven mn, followed by Chennai at six point one mn and Pune at five point nine mn. Delhi NCR also posted the strongest year-on-year growth at 69 per cent, while Chennai and Pune recorded increases of 39 per cent and 32 per cent respectively. Cushman & Wakefield managing director for logistics and industrial services said occupier demand had remained resilient despite geopolitical tensions, and firms had adopted a more measured approach to decision making while maintaining expansion plans. The report said demand was expected to remain supported in H2 2026 by seasonal activity from e-commerce, retail and automobile sectors, though global developments could influence the pace of corporate decisions. The analysis suggested the industrial and logistics market would continue to reflect long-term confidence in India's manufacturing and consumption story.

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