Electric cars may be racing toward the future, but their resale value seems stuck in the slow lane. Investment banker Sarthak Ahuja says used electric vehicles are losing value almost twice as fast as petrol and diesel cars, mainly due to worries around battery life and replacement costs.
EVs depreciate faster
Ahuja didn’t mince words on depreciation. “You get a much poorer resale value and the depreciation on the car is much higher as an EV,” he wrote, warning prospective buyers to factor in faster value drop before signing the cheque.
According to him, batteries make up 30–40 per cent of an EV’s price, but there’s no uniform way to judge their health when reselling. That’s where buyers get nervous.
“There is no true battery health meter… every manufacturer uses their own software,” he noted. Without a standard metric, used-EV buyers are left guessing what they’re really paying for.
He compared the situation to early smartphone buyers who were hesitant to buy used phones because of unpredictable battery life. With EV tech evolving rapidly, newer models with better range also make older ones age faster in the market’s eyes.
Key questions before buying
Ahuja urged buyers to ask three questions to avoid ending up with a flat battery, financially and literally.
Battery warranty: Some brands like BYD offer up to eight years. Tata may offer up to 15 years—but often only for the first owner.
Swappable or rented batteries: MG, for example, reportedly allows battery rental using per-kilometre pricing. Battery as a Service (BaaS) may reduce risks.
Battery health check: For used EVs, he recommends asking for a “State of Health” certificate. It should ideally show less than 2 per cent battery degradation per year.
“Maybe get certified pre-owned to be safe,” he adds.
India’s EV adoption is growing, but concerns around long-term value and battery policy loom large. Until the industry brings standard battery diagnostics and longer transferable warranties, electric car owners might enjoy silent drives—but hear loud groans at resale time.
