Electric vehicles hit by falling resale value as demand cools

Electric cars are losing the battle to their conventional fuel counterparts in India's used-car market, as their resale value is simply not matching up to expectations despite having fewer moving parts, with battery concerns and influx of newer electric models playing their part.

- Ayaan Kartik

According to used car aggregator platform Spinny, if an electric model made in 2023 is resold today, its price would have fallen somewhere about 23%. Comparatively, internal combustion engine (ICE) model would see 20% depreciation.

Used car marketplace CARS24 says that while three-to-five year-old popular ICE car models retain more than 50% of their original value, the same is not the case with electric vehicles (EV).

In fact, data sourced from Spinny suggests that the gap between the two widens when it comes to older models. For instance, a 2020 EV model would lose about 46% in value compared to 40% for an ICE model of the same vehicle manufactured in the same year.

Two factors are contributing to this. Consumers' discomfiture with battery longevity and replacement cost, and more attractive electric cars being launched at similar price points to older cars.