What is JSW MG Motor India’s extended buyback offer?
On Monday, JSW MG Motor India extended its assured buyback programme for EVs from three years to up to five years, an industry-first move in the mass-market segment. The company said the initiative guarantees a resale value of 40–60 per cent, depending on the tenure chosen, and is available not only to private buyers but also to commercial fleet operators using the MG ZS EV.
“As a customer-centric brand, MG has always introduced initiatives like BaaS (battery-as-a-service) and a lifetime warranty on EV batteries that make EV ownership a delightful mobility experience,” said Anurag Mehrotra, managing director, JSW MG Motor India. Resale value, he added, remains a key concern for prospective EV buyers, and the extended assured buyback is aimed at offering peace of mind and building trust in electric mobility.
The programme, facilitated by Lockton India Insurance and offered in partnership with Zuno General Insurance, is not linked to any loan or finance scheme. Customers can choose to retain, surrender or upgrade their vehicle at the end of the selected tenure, reducing depreciation risk and making it easier to switch to a newer model.
How big is India’s electric passenger vehicle market now?
Such initiatives are gaining prominence as battery electric vehicles now account for about 4.6 per cent of India’s passenger vehicle sales. Between January and November, registrations of electric passenger vehicles rose 78 per cent year on year to 160,740 units. JSW MG Motor, the second-largest EV seller after Tata Motors, has a market share of around 30 per cent, with sales more than doubling to over 47,000 units during the period.
What are Tata Motors and Maruti Suzuki planning for EV resale?
Tata Motors, which dominates the EV space, has been working on strengthening the resale ecosystem. A Tata Motors Passenger Vehicles spokesperson told Business Standard: “Tata Motors conducted a pilot project to create a dedicated online marketplace for pre-owned electric vehicles (EVs), reinforcing its commitment to strengthening the EV ecosystem and improving customer accessibility. To ensure peace of mind for second owners, it has also introduced comprehensive battery health checks and refurbishment services.”
Maruti Suzuki, which is preparing to enter the EV market with its first electric SUV, has also flagged resale assurance as a priority. Senior executives have indicated the company plans to offer an assured buyback and a battery-as-a-service framework for its EVs, aimed at protecting customers from uncertainty around battery life and future valuation — a concern that does not typically arise with internal combustion engine vehicles.
Why is battery health central to EV resale value?
Industry executives say EV buyers face greater uncertainty because the battery alone accounts for nearly 40 per cent of an EV’s cost, and long-term degradation directly impacts resale value. With only a limited number of EVs currently circulating in the second-hand market, an organised resale ecosystem is still nascent. Assured buyback programmes of five years or more, analysts say, could help establish price benchmarks early and smoothen the transition to a larger, more confident EV market in India.
How are used EV prices behaving, and what do dealers see ahead?
Dealer sources said EV prices typically reduce in line with their internal combustion engine (ICE) counterparts — around 25 per cent in the first year — and thereafter depend on usage, including kilometres travelled and battery life.
OEMs believe the used EV market is likely to mirror the new EV market with a lag of three to four years.
“The used EV market is likely to closely mirror the new EV market with a lag of three to four years, as early adopters upgrade to longer-range and more advanced EVs. Major volumes of EVs are from 2021-22. And so, we will see the initial lot of upgraders in 12-24 months,” an industry insider said.
Dealers said they are already handling customers who want to exchange older EVs for new vehicles.
“Several people who are value- or cost-conscious are now opening up to buying used EVs, as warranties on the batteries are for eight to 10 years. These batteries can last for far more than that depending on charging cycles. Up to 2,000-3,000 charging cycles are possible. Even if one charges once a week, it works out to 52 charges a year. So a three- to four-year-old EV would have probably been charged hardly 200 times,” said one dealer. “The cells can be replaced, if needed, and the EV is good to go.”
