Que: Why are so many Indian EV users finding themselves stuck with what you’ve termed as ‘dead assets’?

Ans: This happens when users, especially commercial operators, end up with EVs that have no certified resale value. The problem worsens when these vehicles no longer deliver the promised range. As a result, they can't be sold, refinanced, or repurposed—thus becoming ‘dead asset.’

The root causes include:
• An underdeveloped resale ecosystem or secondary market
• Poor product underwriting during financing
• No battery health tracking post-sale

To elaborate on the resale ecosystem, dealers currently dominate the used vehicle market, handling 90 percent of 2W and 3W and 70 percent of 4W trades. However, their limited engagement in the used EV market has stifled competition and suppressed residual values. Uncertainty around EV longevity and performance, particularly among inexperienced dealers, leads to accelerated price depreciation, almost double that of ICE vehicles, due to fear of the unknown.

Que: How significant is the problem of rapid battery degradation in real-world usage compared to lab-tested projections?

Ans: It’s one of the biggest hidden risks in EV adoption.

Battery performance metrics shown in brochures often ignore India’s real-world challenges:
• High temperatures
• Poor grid quality
• Overloading
• Misuse of fast charging
• Aggressive duty cycles (especially in gig and fleet operations)

Batteries expected to last 5 years may degrade by 30–40 percent within 18-24 months in such conditions.
Therefore, it’s essential to consider:
• Charging patterns
• Depth of discharge
• Environmental wear

This data is crucial for financiers, insurers, and both new and used EV buyers to realistically assess the Remaining Useful Life (RUL).

Que: What are the most critical structural or operational gaps you see in India's current EV ecosystem, from manufacturing to resale?

Ans: That's a really interesting question and, looking at the whole process from manufacture to resale, there are some rather significant structural gaps preventing the EV ecosystem in India.

First, right now funding is mostly credit-based. While banks and NBFCs concentrate primarily on the borrower's CIBIL score, the actual vehicle being financed receives hardly any attention. It is therefore like lending money as a personal loan and labelling it as an auto loan.

Second, there isn't a meaningful mechanism in place to monitor battery condition over time. The most expensive and sensitive component of the EV becomes a total black box once it is sold. That breeds major resale trust problems.

Third, there is no accepted method for figuring residual value. Every EV is unique based on usage; without correct data, pricing a used EV becomes a guessing game.

Fourth, the service ecosystem is highly fragmented. Some OEMs, especially more recent ones, have not developed strong after-sales systems. And when a few depart the market, as we have already observed, users are left stranded.

At last, the used EV market itself is still young. No certification process, no appropriate resale channels, and most definitely no structured financing choices for used electric vehicles.

All of these gaps taken together make it quite difficult for EV adoption to expand naturally and much more difficult for individuals to believe the long-term value of what they are purchasing.

Que: What should OEMs be doing differently to ensure long-term battery performance and stronger product support?

Ans: OEMs need to evolve from just vehicle sellers to lifecycle enablers, unlike their ICE-era approach.
Key steps include:
• Standardising IoT integration in every EV for real-time tracking
• Provide open APIs or data partnerships with financing and resale platforms. Unified Energy Interface (UEI) can be a big enabler.
• Offering structured battery replacements or upgrades instead of vague warranties

Que: What policy-level interventions are urgently needed to protect consumers and improve lifecycle value for EV buyers?

Ans: Key policy recommendations:
• Mandate battery health certification at resale (like PUC for ICE vehicles)
• Create EV underwriting and health frameworks to aid financing and insurance
• Develop data-sharing policies allowing anonymised IoT data use in finance without compromising user privacy

Que: How can consumer trust in EVs be rebuilt amid growing reports of dissatisfaction and financial loss?

Ans: Rebuilding trust requires transparency, long-term support and asset value assurance. For the cost-conscious Indian consumer, this means:
• Establishing certified dealer networks and instant resale liquidity platforms
• Enhancing battery service and warranty clarity, including post-warranty buybacks or upgrades
• Creating OEM-led BuyBack programs

If buyers know they can resell, upgrade, or refinance their EV based on battery health, the fear of owning a ‘dead asset’ diminishes.

Que: What advice would you give to new EV buyers in India to ensure they make informed and future-ready purchase decisions?

Ans: Every new EV buyer should:
• Ask for battery health transparency, even on a new vehicle.
• Prefer OEMs with IoT and real-world degradation data.
• Verify eligibility for resale or refinancing; look for Assured Buyback offers.
• Understand total lifecycle cost, not just upfront pricing.
• Choose EVs supported by financing and resale networks, not just flashy specs.

EVs are 5–7 year assets. Choose ones that remain valuable, supported, and financeable throughout their lifecycle.