India’s electric vehicle (EV) sector, once seen as the future of mobility, is currently grappling with a major challenge—declining resale value. As EV adoption continues to grow, the used EV market is showing signs of strain, with resale prices falling sharply compared to traditional internal combustion engine (ICE) vehicles.
According to data from Spinny, a leading car aggregator platform, electric cars manufactured in 2023 are being resold at significantly lower prices than their ICE counterparts. The drop in resale value is now emerging as a critical factor in buyers’ decisions, raising concerns for automakers and policymakers alike.
EVs Depreciate Faster Than ICE Vehicles
Spinny's analysis reveals that the resale value of a 2020 electric vehicle is now only about 46% of its original price, while a similarly aged ICE vehicle retains approximately 58%. This significant gap highlights a growing hesitancy among Indian consumers when it comes to investing in EVs, especially in the pre-owned vehicle market.
"The resale value is a make-or-break factor for many car buyers," said a Spinny representative. "And right now, EVs are failing to hold their ground compared to conventional cars."
Battery Life and Maintenance Still Major Concerns
A key reason behind the drop in resale value is uncertainty over battery health. EV batteries are expensive to replace, and buyers remain wary of long-term performance. Despite having 45–84% fewer moving parts than ICE vehicles, EVs do not necessarily offer a smoother ownership experience due to concerns over battery degradation and replacement costs.
Gajendra Jangid, co-founder of CARS24, explained, “Electric cars are still struggling to earn consumer confidence. ICE vehicles have a robust maintenance ecosystem, and their resale market is more established. EVs, in contrast, are still in a transitional phase.”
He added that ICE models like the Maruti Swift and Tata Tiago NRG are regularly in demand on resale platforms due to their reliability and widespread service networks.
Real-World Cases Reflect the Problem
In one notable instance, a six-year-old electric car with an original showroom price of ₹18 lakh was traded in for just ₹4 lakh—a massive 78% drop in value. In contrast, ICE vehicles of the same age often retain over half their original value.
Used car dealers are also cautious. “We’re seeing hesitation from buyers when it comes to EVs,” said a Delhi-based used car dealer. “They’re concerned about battery replacement, lack of charging infrastructure, and uncertain performance in the long run.”
Automakers and Analysts Call for Solutions
Auto experts and industry insiders suggest that improving battery technology and expanding service networks could help boost confidence in EV resale. Manish Yadav, vice president at Spinny, believes the market will eventually mature but acknowledges that “right now, the second-hand EV segment is still evolving.”
Meanwhile, a 2024 study by the International Forum for Environment, Sustainability & Technology suggests that manufacturers must do more to ensure long-term support and service for EV buyers to retain vehicle value over time.
Consumer Interest in EVs Shows Signs of Decline
According to the 2025 Deloitte Global Automotive Consumer Study, Indian consumers’ interest in EVs is also waning. The percentage of buyers considering an EV purchase dropped from 16% in 2023 to just 10% in 2024, largely driven by concerns around cost, battery life, and resale value.
Mission Ahead
While India remains committed to electrifying its transport sector to reduce emissions and dependence on fossil fuels, the current slump in EV resale value underscores the importance of building consumer trust. Enhanced battery warranties, buyback schemes, and transparency in battery health assessments could be key to turning the tide in favor of EVs in the used car market.
