Learn how we are working to transform how we use and produce energy.
Understanding Residual Value Uncertainty in India’s Evolving EV Market
Why we share this work for free
RMI is an independent nonprofit working to accelerate the clean energy transition. We publish research like this to inform decision-makers and drive real-world impact.
Our work is supported by philanthropy as well as partnerships, including fee-for-service engagements. This support makes it possible for us to share our independent insights for free.
If you find this work valuable, you can support it anytime.
Get more insights like this
Stay up to date with the latest research, analysis, and tools from RMI by opting in to receive occasional emails below. You’ll get new reports, event invitations, and practical insights to help us all accelerate the clean energy transition.
Loading form...
Your download should start automatically. If it doesn’t, click the download button below.
This work is made possible by philanthropy
RMI is a nonprofit supported by donors and partners. Philanthropy enables us to produce independent research and make resources like this freely available.
If you find this report valuable, please consider supporting our work. You can also explore how we partner with organizations to drive impact.
Jump to Section
To achieve India’s target for energy independence by 2047, the country needs to take proactive steps to accelerate the growth of the EV sector. A crucial step is bringing down the real and perceived risks for purchasers and financiers. One of the most powerful levers for doing this is establishing clarity on the residual value of EVs — the price an EV and its battery can command in the secondary market at a given time. This will help consumers get a more accurate sense of their total and bring down purchase uncertainty, boosting the demand for EVs and growing the market for second-hand EVs. It can also help increase EV financing by helping financiers more accurately estimate their ability to recoup their loans in case of default. Together, the increase in demand and financing can encourage on and scale the supply of EVs.
The residual value of an EV is influenced by the interplay of three sets of factors: 1) asset quality, 2) ability to extract value and 3) consumer willingness to pay. Each of these are either uncertain or depressed in India for reasons summarized below, resulting in a lack of clarity on residual values.
Related Insights
Help build the clean energy future. Donate today.
Independent research. Real-world solutions. Supported by donors.
RMI can pursue the highest-impact climate and energy solutions because we’re supported by people who believe change is possible. Every gift helps advance the work needed to make clean energy the default choice worldwide.
For other ways to give to RMI, including checks or gifts of stock, please visit Other Ways to Give.
