EV depreciation: real concern, and how to actually use it in your favour.

1. Why EVs depreciate faster today

Used car prices move on vibes as much as on data. For EVs, three things are pulling prices down:

• • Battery fear: people still assume the pack will "die" early, even though fleet data doesn't support that.
• • Fast tech updates: every year range, features and warranties get better, so older EVs feel "outdated" more quickly.
• • Smaller used buyer pool: many Indian buyers are still scared of EVs, so demand is thinner than for a Nexon petrol or Creta diesel.

Put simply: EVs right now are a bit like smartphones in the early days – new tech moving fast, resale not fully settled. That hurts you if you sell early, but can be amazing if you're the person buying used.

2. Nexon petrol vs Nexon EV: rough 3-year example

Let's take a typical 2022 car, run around 50,000 km. Prices vary by city and variant, so this is a ballpark based on ex-showroom/on-road data and current used listings on portals like CarDekho, CarWale, Spinny and OLX.

*Based on 2022 ex-showroom prices around ₹10.5–11 lakh for higher Nexon petrol trims and ~₹15.5 lakh+ for Nexon EV trims, plus taxes/insurance to reach on-road bands. **Resale ranges from used car portals for 2022 cars with 40–60k km, depending on condition, city and variant.

Two takeaways:

• • The EV loses a higher percentage and many more rupees, because it started more expensive.
• • For a used buyer, that same drop means you can now get a Nexon EV for petrol-type money, sometimes even cheaper than a loaded diesel.

3. Battery fear vs actual battery health

The main reason people expect EV prices to crash is: "What if the battery is gone?" But as we saw on the battery page, modern packs (especially LFP) are usually ageing at roughly 1–3% per year in normal use, with many cars still above 85–90% after well over 1 lakh km.

On top of that, Tata has now started offering 15-year / lifetime type battery warranties on some Nexon EV variants, which directly tackles this worry. Older cars still have 8-year coverage, and in both cases the risk of a total battery failure is much lower than people assume.

The key difference with EVs is that you don't have to guess: OEMs and service centres can give you a battery State-of-Health (SoH) report before you buy. That's something you never get with a petrol engine or gearbox.

4. How to use depreciation to your advantage as a used EV buyer

If you're not obsessed with owning the latest facelift, current depreciation is actually your friend. The playbook is simple:

• • Look for a 2–4 year old EV (Nexon EV, Tiago EV, ZS EV etc.) where the first owner has eaten the biggest drop.
• • Insist on a battery SoH certificate from the authorised service centre, or from the OEM if they provide it.
• • Check remaining warranty years + km on the battery and drivetrain.
• • Verify that there are no fast-charging abuse patterns or major accident history.

If the pack is still at, say, 90%+ health and you're going to drive another 60–80k km over the next few years, you're essentially getting most of the EV's life at a heavy discount, while the first owner paid for the "new tech" tax.

5. For business owners: EVs get a much higher tax depreciation rate

On the business side, there's one more angle that people miss. Under Indian income tax rules, electrically operated vehicles used for business can be eligible for 40% depreciation per year as plant and machinery, while normal cars usually sit at 15% in most cases.

Rough illustration (ignoring GST ITC, additional depreciation, mixed use etc.):

Exact benefit depends on your tax slab, whether the car is used purely for business or mixed personal use, whether additional depreciation applies, and future rule changes. Always confirm with a CA before planning only around tax.

The idea is not that "tax benefit will pay for the car". It won't. But for small businesses, professionals and fleets, higher depreciation plus lower running cost can meaningfully tilt the maths towards EVs, even if resale is weaker.

6. When depreciation is actually a problem

There are also honest cases where EV depreciation hurts:

• • You keep cars only 3–4 years and always buy new – you're the one subsidising the cheap used EV market.
• • You live in a weak EV resale market (small town, no charging infra, no local buyers) and may struggle to sell at a fair price.
• • You bought an early, low-range model just before a big tech jump (bigger batteries, better warranties), so buyers naturally prefer the newer spec.

If any of this describes you, a strong petrol/diesel may still be the safer choice financially, even if running cost per km is worse.

7. How I'd think about it as an Indian buyer

For most Indian buyers who drive a decent amount every year and keep their cars for 7–10 years, I'd think in three layers:

• 1. Running cost: our calculator already shows how quickly fuel + service savings stack up.
• 2. Battery health: check SoH, warranty and real degradation numbers instead of just listening to "5 saal mein battery khatam" talk.
• 3. Depreciation: if you buy new and sell fast, EVs can hurt. If you buy used or keep long, current depreciation is often a feature, not a bug.