Do EVs Lose Value Faster Than Petrol or Diesel Cars?

It’s safe to say that the electric vehicle (EV) market has experienced significant growth over the years, and many drivers are now considering whether to go electric or stick with a traditional petrol or diesel car. One of the key questions on everyone’s mind is: Do EVs lose value faster than fuel-powered cars? In this article, we’ll explore the key facts, the factors that contribute to vehicle depreciation, and what this means for buyers, especially those looking for the best EV cars in India.

Depreciation: The Basics

All cars lose value as soon as they leave the showroom. This process, known as depreciation, is influenced by factors like age, mileage, technology, and market demand. So, how do electric vehicles compare to their petrol or diesel counterparts?

Quick Comparison: EVs vs Fuel Cars

Why Do EVs Depreciate Faster?

Research and insurance industry data show that EVs tend to lose value a little quicker than petrol or diesel cars, especially in the first three years. There are a few reasons for this:

• Battery Life and Replacement Costs: The battery is the most expensive part of an EV. While modern batteries last 5–8 years, buyers worry about costly replacements, which can affect resale value.
• Rapid Tech Evolution: EV technology is advancing quickly. Newer models with better range and features can make older EVs seem outdated, pushing prices down faster.
• Market Demand: While demand for EVs is growing in India, it’s still catching up to traditional cars. This limited demand means used EVs can be harder to sell, impacting their value.
• Government Incentives: Many new EVs benefit from subsidies, but these don’t apply to second-hand buyers, making used EVs less attractive.

How Does This Play Out in India?

The Indian market is still at an early stage for EVs, with less than 2% of vehicles on the road being electric. As a result, insurance companies currently depreciate EVs at a similar rate to petrol and diesel cars, but this may change as the market matures and more data becomes available.

Notably, some of the best EV cars in India, such as those with a range of over 240 km per charge, fast DC charging, and advanced comfort features, are helping to boost confidence in the segment. These models offer practical benefits, like lower running costs and fewer mechanical issues, which may help slow depreciation as consumer trust grows.

Comparing Features: Electric vs Petrol/Diesel Cars

• Infotainment: EVs typically offer advanced touchscreens with wireless connectivity as standard, while petrol/diesel cars often reserve these features for top variants.
• Cabin Comfort: Electric cars like the Citroën ë-C3 often have a roomier feel inside, thanks to flat floors and modern layouts. The ë-C3 Citroën car’s interior is designed to maximise space and comfort, whereas petrol and diesel cars typically feature more traditional interiors with some space taken up by transmission tunnels.
• Driving Experience: EVs provide instant torque and a quieter ride, whereas petrol/diesel cars deliver familiar engine response and sound.
• Maintenance: EVs require less frequent servicing, while petrol/diesel vehicles need regular oil changes and more mechanical upkeep.

The Key Takeaway

While EVs currently tend to lose value faster than petrol or diesel cars, mainly due to battery concerns, rapid technological changes, and a smaller used market, this trend is beginning to shift. As the technology matures and consumer demand grows, the gap in depreciation is expected to narrow.

For buyers looking for the right EV, it’s important to consider more than just resale value. Factors like lower running costs, minimal maintenance, and environmental benefits make EVs a compelling choice. If you plan to keep your car for several years and value modern features and ease of ownership, choosing an EV can still be a smart long-term decision. As the market continues to grow, resale values are likely to improve, making the switch to electric an increasingly attractive option.