Tata Motors taps used car market to boost electric vehicle resale, exchange

The country’s largest electric car maker Tata Motors has started working with used car marketplaces to facilitate resale and exchange for electric vehicle (EV) owners.

A company spokesperson told Business Standard, “We have been working on opportunities for facilitating EV resale / exchange for those owners who are looking to upgrade to a new EV. Our plans are currently at an early stage, and we are piloting at a small scale with used car online marketplaces.”

The company has the largest car park in EVs in India, estimated to be around 170,000 units. As a pilot, the company has already started work with used online car marketplace Spinny.

While both Tata Motors and Spinny declined to comment on the matter, used Tata Nexons are on sale on the platform.

A 2021 Nexon EV XZ Plus is available in Mumbai for Rs 11.61 lakh on the platform.

A new Tata Nexon EV is available for Rs 12.49-16.49 lakh.

Dealer sources said that typically EV prices reduce in line with their internal combustion engine (ICE) counterparts. This is around 25 per cent in the first year, and thereafter, it depends on usage (kms travelled and battery life).

A Tata Motors spokesperson said the used EV market is likely to closely mirror the new EV market with a lag of 3-4 years.

“The cells can be replaced, if needed, and the EV is good to go. One major challenge for EV adoption is the cost of acquisition. Used EVs can be the answer,” the person felt.

Tata Motors spokesperson told Business Standard that used EVs will continue to have a strong value proposition for those who would prefer to try a lower-cost EV. This will help people understand their use case benefits better before buying a new EV.

“Budget-constrained customers with high running use cases will also opt for them for their inherent low-running cost and assurance of the residual powertrain warranty period,” he added.