Understanding Residual Value Uncertainty in India’s Evolving EV Market

This briefing by RMI discusses the importance of establishing clarity on the residual value of electric vehicles (EVs) to accelerate the growth of the EV sector in India and support the country's goal of energy independence by 2047.

• Establishing clarity on the residual value of EVs—defined as the price an EV and its battery can command in the secondary market—is a critical lever for reducing real and perceived risks for purchasers and financiers. This clarity is expected to provide consumers with a more accurate sense of total cost, reduce purchase uncertainty, increase demand for both new and second-hand EVs, and allow financiers to better estimate loan recovery in cases of default, which collectively scales EV supply.
• The residual value of an EV is determined by the interaction of three specific factors: asset quality, the ability to extract value, and consumer willingness to pay. In India, these factors are currently either depressed or uncertain, leading to a general lack of clarity regarding residual values.

APA

RMI (2025). Understanding Residual Value Uncertainty in India’s Evolving EV Market. https://rmi.org/resources/understanding-residual-value-uncertainty-in-indias-evolving-ev-market/

Chicago

RMI. Understanding Residual Value Uncertainty in India’s Evolving EV Market. 2025. https://rmi.org/resources/understanding-residual-value-uncertainty-in-indias-evolving-ev-market/.

Wikipedia

{{cite report |author=RMI |title=Understanding Residual Value Uncertainty in India’s Evolving EV Market |date=17 June 2025 |url=https://rmi.org/resources/understanding-residual-value-uncertainty-in-indias-evolving-ev-market/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2025understanding, author = {{RMI}}, title = {{Understanding Residual Value Uncertainty in India’s Evolving EV Market}}, institution = {RMI}, year = {2025}, month = jun, url = {https://rmi.org/resources/understanding-residual-value-uncertainty-in-indias-evolving-ev-market/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }