The Indian electric mobility ecosystem is moving into its next big frontier—the rise of a structured second-hand EV market. While the demand for pre-owned EVs is steadily growing, driven by high upfront costs of new vehicles, the supporting ecosystem remains underdeveloped. Issues like lack of battery health diagnostics, absence of certified resale platforms, inconsistent pricing, and limited financing options continue to create uncertainty among buyers. For most consumers, the battery remains the biggest black box, making resale transactions a gamble rather than a trusted process.
In a recent interview Rashmi Verma interacted with Tanvir Singh, Co-Founder of Mooving & Solar Cube, and discussed the opportunities and challenges in shaping India’s used EV market. Singh highlighted that battery health transparency is the cornerstone for building consumer trust, comparing it to the importance of a credit score in the financial world. He stressed the need for a unified scoring system that could bring standardization to pricing and resale confidence, enabling buyers and financiers to make informed decisions.
Singh also touched upon the critical role of OEMs, data-backed diagnostics, and neutral third-party platforms in creating transparency and setting valuation benchmarks. From policy interventions like mandatory battery certifications and GST relief on pre-owned EVs, to the potential of refurbished battery models and circular economy approaches, he outlined several pathways to unlock this emerging sector. As India moves closer to mainstream EV adoption, the second-hand market could become a decisive enabler of mass affordability and trust.
Do you believe India is ready for a structured second-hand EV market? What are the key enablers and gaps?
Honestly, we’re right at the beginning of that curve. The demand is picking up people are curious and open to considering a pre-owned EV, especially with high costs of new ones. But the ecosystem hasn’t caught up yet. There are no standard diagnostic tools, no trusted resale platforms, and financing is still a major roadblock. The key enablers would be battery health transparency, certified resale channels, and access to financing. Once those come together, we’ll see real momentum. We’re working on something in this space, a tech-led solution that addresses some of these very challenges, and you’ll be hearing more from us very soon.
What are the biggest concerns Indian buyers have while considering a used EV?
The number one worry? The battery, plain and simple. For most buyers, it is a black box. They can see the vehicle looks fine, maybe even runs okay during a short test ride, but they have no clue how much life the battery really has left. And in EVs, that’s a big deal, the battery makes up a huge chunk of the cost, and replacing it isn’t cheap.
People are afraid they might end up buying a used EV and then have to shell out for a new battery just months later. That fear alone stops a lot of second-hand EV deals from going through. Then there’s the usual range anxiety, even more intense when you’re not sure if the battery’s already degraded.
Another big issue is after-sales support. What if something breaks and the OEM is no longer around or doesn’t stock parts anymore? That’s happened with quite a few early-stage EV startups. Buyers also worry about whether they’ll be able to sell the EV later, and for how much. With no clear benchmarks or resale standards, pricing is all over the place.
Basically, there’s too much guesswork. And when you’re spending serious money on a vehicle, that’s not something people are comfortable with. We need better transparency, better tools to evaluate battery health, and some industry-wide standards to build trust.
How important is battery health transparency for second-hand EV transactions?
It’s everything. The battery is the heart of the EV. If buyers don’t have clear info about its health, range, and life left, technically called RUL (Residual Useful Life), there’s no way to price it properly, and that kills trust. It’s like trying to sell a second-hand phone without knowing the battery backup. We need a clear, easy-to-understand score or diagnostic that tells both the buyer and seller exactly what they’re dealing with.
Can we envision a unified scoring system like a “CIBIL for EVs” based on how the EV has been driven and maintained?
Absolutely! and frankly, it’s one of the most crucial pieces missing from the current ecosystem. Just like a credit score helps assess financial risk, EVs need a standardised, easy-to-understand score that reflects their true condition, especially the battery, motor and usage patterns. We’ve been thinking deeply about this challenge, and let’s just say, something exciting is in the works.
What role can OEMs or EV marketplaces play in creating transparent valuation benchmarks?
In theory, OEMs are best placed to drive this, they have a goldmine of data on battery and vehicle performance. But here’s the reality: traditionally, OEMs haven’t been too invested in the used vehicle market. Their focus has mostly been on new vehicle sales, and that’s reflected in their systems, priorities, and even incentives. Moreover this market needs relative benchmarks as much as individual benchmarks.
Now combine that with the fact that products are still maturing and there’s reluctance to expose any flaws, no OEM wants to air their dirty laundry. Even when data is shared, it’s often selective, and many issues get attributed to user behaviour rather than acknowledged as product-level concerns.
So realistically, until OEMs see clear business value in supporting used EV markets and feel confident enough in their tech to stand by it publicly transparent valuation benchmarks will have to come from neutral, third-party players. Hopefully, as the market matures, OEMs will support. But for now, they’re still figuring it out themselves.
In the West, homes with solar panels or energy-efficient upgrades see better resale value. Could similar consumer behaviour be encouraged for EVs in India?
Yes, and we’re already seeing hints of it. A well-maintained EV charged properly, serviced regularly, driven within optimal limits, should command a better resale price. But for that to happen, we need to track and reflect this behaviour in the resale process. That’s where data-backed diagnostics and a scoring system help. The moment you create that feedback loop, good behaviour = better resale value, people will follow it.
What’s the current state of the resale ecosystem for EVs in Tier 2 and Tier 3 cities?
The resale market for EVs in Tier 2 and Tier 3 cities is still very early stage, but interest is picking up. People are definitely curious, especially as word spreads about EV savings and incentives. That said, we’re seeing some very real challenges.
What is interesting to note and is a major issue for new and used alike, and this is becoming a national-level concern, is something we informally call the “lakh-ka-teen” problem. Basically, a flood of Chinese-assembled EVs, mostly two-wheelers, are being sold at ₹30,000–₹40,000, with zero registration, no real after-sales support, and often flouting basic safety norms. These vehicles typically don’t meet any organized standards, and their presence is distorting the perception and potential of EVs in these markets. It’s risky for consumers and damaging for the ecosystem.
The government is expected to step in soon with clearer norms to curb this kind of misuse and enforce minimum safety standards, and that’s when we believe the genuine new and used EV market in Tier 2 and Tier 3 cities will start taking shape.
As for four-wheeler EVs, the resale story is still in its infancy across the country, not just in smaller towns. New vehicle supply itself is limited, and awareness is low.
What policies or incentives could support the growth of India’s second-hand EV market?
There are a few no-brainers here:
- Mandate battery health certification at the time of resale.
- Provide GST relief or subsidy for pre-owned EVs inline with New EVs
- Build a data-sharing framework where anonymized vehicle and battery data can be accessed by financiers and insurers. UEI is a step in this direction.
What financing options currently exist for buying a pre-owned EV in India? How are they different from those for new vehicles?
Right now, very few financiers touch used EVs, they have their hands full with tackling new EVs. EV is treated as a personal loan, with high interest rates and low LTV (loan-to-value). Why? Because they don’t know how to value the battery. With new EVs, at least there’s warranty coverage and some confidence in the asset. For used ones, unless we fix the diagnostic and pricing gaps, lending will stay limited.
Do you foresee battery reuse/recycling models influencing resale confidence and lifecycle value of EVs?
Definitely. When people know that even an older battery has a second life, either through certified refurbishment or energy storage applications, it adds value. It creates an exit path, and that brings confidence to buyers and financiers. The industry is already working on models where refurbished batteries can be certified and sold back into the market at lower prices. This circular approach is not just great for business, but essential for sustainability.