Understanding Residual Value Uncertainty in India’s Evolving EV Market

The briefing identifies residual value uncertainty as a primary barrier to EV adoption and financing in India. It posits that clear residual value estimates—determined by asset quality, value extraction ability, and consumer willingness to pay—would lower purchase uncertainty for consumers and improve loan recoupment estimates for financiers, thereby scaling both EV supply and demand.

• Establishing clarity on the residual value of EVs—defined as the price an EV and its battery command in the secondary market—is essential to reducing real and perceived risks for purchasers and financiers in India.
• Clear residual value data would benefit the market by providing consumers with a more accurate sense of total cost and allowing financiers to better estimate their ability to recover loans during defaults.
• Residual value in the Indian EV market is currently uncertain or depressed due to the interplay of three factors: asset quality, the ability to extract value, and consumer willingness to pay.

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} }