EV Depreciation: A Temporary Dip, Not a Long-Term Trend

At its peak, Indian rideshare Blusmart had a fleet of more than 7,500 EVs.

By EVWorld.com Si Editorial Team

Recent headlines have painted a grim picture of electric vehicle resale values, citing fleet collapses and rapid depreciation. While these concerns deserve scrutiny, they risk obscuring a more nuanced - and ultimately more hopeful - reality.

Yes, EVs have depreciated faster than their gas-powered counterparts in certain markets. But this is less a verdict on the technology and more a reflection of transitional turbulence. The collapse of fleet operators like Hertz in the U.S. and BluSmart in India - which ran over 7,500 EVs across Delhi NCR and Bangalore - flooded the used market with inventory, distorting resale metrics. These were business model failures, not product failures.

Battery health anxiety also plays a role. Unlike internal combustion engines, EV batteries lack standardized diagnostics in the resale market. But that's changing. Automakers are rolling out state-of-health reports, extended warranties, and certified pre-owned programs that demystify battery longevity. Data from Tesla, BYD, and GM shows modern EV batteries routinely exceed 200,000 miles with minimal degradation - often outperforming expectations.

Meanwhile, the economics of EV ownership remain compelling. Lower fuel and maintenance costs, over-the-air updates, and evolving charging infrastructure all contribute to long-term value. Vehicles built on platforms like GM's Global B or Tesla's software stack retain relevance through continuous upgrades, making a five-year-old EV feel far fresher than its ICE equivalent.

Policy is also catching up. Used EV tax credits, residual value guarantees, and battery-as-a-service models are emerging to stabilize resale pricing. And as lithium-iron-phosphate (LFP) chemistry becomes mainstream, buyers can expect longer-lasting, safer, and more affordable battery packs.

In short, depreciation is a symptom of a market in flux - not a flaw in the technology. As transparency improves and operational economics become clearer, EVs will not only hold their value - they'll redefine it.

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