Tata Motors Revolutionizes EV Market: Exciting Resale and Exchange Offers in Used Car Sector
Tata Motors Introduces Used EV Marketplace to Boost Resale Options
Tata Motors, India’s largest electric vehicle (EV) manufacturer, is partnering with used car marketplaces to streamline the resale and exchange of EVs. Currently, Tata Motors is piloting this initiative with online car platform Spinny, according to a company spokesperson.
With an EV fleet of approximately 170,000 units, the company aims to facilitate upgrades for existing EV owners. As a result, used Tata Nexon EVs are now available for purchase on platforms like Spinny. For instance, a 2021 Nexon EV XZ Plus is listed at Rs 11.61 lakh, in contrast to the new model priced between Rs 12.49-16.49 lakh.
Dealer sources reveal that EV prices typically depreciate similarly to their internal combustion engine counterparts, dropping by about 25% in the first year based on factors like mileage and battery life. Tata Motors expects the used EV market to reflect trends in the new EV market with a 3-4 year delay, as early adopters seek newer models.
In response to rising exchange requests, Tata Motors dealers strive to meet customer demands, though they acknowledge standardizing resale rates remains challenging. Executives from used car marketplaces explain that buying from such platforms offers advantages like warranties on used EVs. This assurance is appealing to cost-conscious consumers, as EV batteries often have warranties of 8-10 years and can endure 2,000-3,000 charging cycles.
Tata Motors believes that lower-cost used EVs offer a valuable entry point for budget-conscious buyers and highlights the benefits of lower operational costs and retained warranty periods. Meanwhile, Tata is making efforts to align the pricing of their EVs with conventional cars and has introduced special pricing to bridge this gap.
In the fiscal year 2025, Tata Motors faced a tough market for EV sales. During Q1 FY25, while overall passenger vehicle sales dropped by 1.1%, EV sales plunged by 13.9% due to a sharp decline in the fleet segment. Shailesh Chandra, managing director of Tata Motors Passenger Vehicles, attributed this to industry-wide trends and expired subsidies under the FAME II scheme.
Additionally, Tata Motors has introduced bundled offers with Tata Power, combining EVs with solar rooftop systems to ensure zero running costs. As more consumers adopt solar panels, this integration is expected to become even more beneficial.
Finally, competitors like Maruti Suzuki are also preparing to enter the EV market, planning to address range anxiety, charging infrastructure, and residual value concerns by offering a comprehensive ecosystem for their customers. Premium automakers such as Mercedes Benz are setting precedents by guaranteeing residual values for their EVs.
First Published: Sep 18, 2024 | 12:35 AM IST
Original Story https://www.business-standard.com/companies/news/tata-motors-working-on-boosting-resale-exchange-value-of-electric-vehicles-124091700783_1.html
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