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Tata Capital > Blog > Loan for Vehicle > A Detailed Guide About Used Electric Car Industry in India

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A Detailed Guide About Used Electric Car Industry in India

A Detailed Guide About Used Electric Car Industry in India

The skyrocketing fuel prices in India have persuaded many potential car buyers to invest in an electric vehicle (EV). Another factor contributing to the growing popularity of EVs is their environmentally friendly nature - with cleaner emissions leading to reduced pollution and a greener environment.

For this reason, even the Indian Government has set a goal of making India a 100% electric vehicle nation by 2030. According to the Government's new goal, all cars sold in India starting in 2030 will be electric.

But buyers are uncertain about shifting to new technology. In such a scenario, experimenting with second-hand EV cars before making a complete switch seems a viable option.

Read on to understand all about the used EV industry in India.

The used electric car industry in India

Owning a car is a dream for many. But the percentage of car owners in India is at just 2%. Given the economic position of an average Indian, the concept of used cars has always remained popular and has now seeped into the electric car market. Also, the notion that a used car is associated with your status has been completely wiped out by practical ways of thinking, thus fuelling the demand for used cars.

Easy and accessible financing like the option of a used car loan has also encouraged buying of pre-owned EVs.

The buyer’s financial capacity is not the only reason to opt for a second-hand electric car. Performance of the car, safety, and environmental factors are also ushering in a large percentage of potential second-hand EV car buyers. With this growing demand, the second-hand electric car industry also has substantially progressed with the help of emerging technological advancements and innovation. It is estimated to become a $50 billion industry by 2026.

The Covid-19 pandemic has also contributed to this estimation, with a sudden rise in people preferring private transport over public. Also, the recent lockdown has taught people the importance of being self-reliant, independent, and economical. This change in perception has influenced their buying behaviour, leading to a positive effect on the second-hand EV industry.

Additional Read:  All you need to know about the electric two-wheeler industry in India

Things to consider before investing in used cars

Purchasing a second-hand electric car is safe as it has fewer moving parts, unlike the conventional diesel/petrol car.

Nevertheless, you should ensure the car’s condition and pay special attention to the battery performance and mileage of the car. It is difficult for used EV sellers to check the intricate parts of the motor, so make sure you check and compare its range over time. Otherwise, the repair and replacement would put a financial burden, with the battery being almost 50% of the car’s price.

When purchasing a second-hand EV car, another crucial aspect to consider is the type of charging port the vehicle has. This information is important as it enables you to locate available charging stations near your residence. Currently, there is a shortage of charging stations in India, so it may be helpful to search for a charger that can be installed in your home and is compatible with any power outlet.

Additionally, make sure to check if charging stations have been installed at local businesses and convenience stores along your typical daily commute.

If you are considering buying a used electric vehicle,  educate yourself on the technical terms and requirements of a used electric car before shopping. And in case you are looking for a car loan financing, choose a suitable loan repayment plan according to your estimated monthly payments. To figure out your potential EMIs, you can use an online used car loan EMI calculator.

Additional Read: What is a Hybrid Car? How Exactly Does it Work?

The advantages of using second-hand EV cars

Here are some of the advantages of buying a used, second-hand electric car.

#1 Opportunities for a newer vehicle

Electric vehicles have only been available for a few years, meaning that you may find one that is no older than 2 years. Plus, if you've good bargaining skills, you can get a dream deal.

#2 Cost-effective

Electric vehicles are known for their low operating costs, so whether you purchase a new or used electric car, it will save you money compared to a petrol, diesel, hybrid, or CNG car.

#3 Noise-free

With no engine, electric cars are incredibly quiet and provide a peaceful driving experience. Whether you are driving yourself or being driven, the only sounds you will hear are from the AC vents or outside, making EVs a peaceful option.

In conclusion

With governments encouraging EVs, and certain states offering benefits to electric car owners like complete exemption from road tax, car buyers are motivated to choose electric cars.

If you, too, are considering a pre-owned EV, then finance your car with Tata Capital at competitive used car loan interest rates. Enjoy benefits like flexible EMI plans, quick disbursals, and swift processing.

Visit our website to know more. Apply today!

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