Here's How Much A 2020 Nexon EV Depreciates After 5 Years

After a slow uptake initially, electric vehicles have now grown in popularity across India. However, many car buyers are still reluctant to consider an electric vehicle due to common misconceptions around ownership experience. Moreover, the high purchasing cost of an EV is also considered a major setback to mass adoption but what about buying a used electric car that fits the budget and offers the benefit of an EV's low running cost?

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While others failed to strike the right balance, it was the Tata Motors Nexon EV that first managed to have any meaningful sales in the electric car segment, after it was launched in January 2020. The electric version

of the Nexon was so popular at one point that it helped Tata Motors corner over 80 percent of the electric passenger vehicle market for a consistent period. Hence, let us make an assessment of how much a 2020 Nexon EV has depreciated in the last 5 years to better understand the pros and cons of EV ownership in India.

For this assessment, we will consider the residual value of a 2020 Nexon EV XZ Plus variant, which has run 50,000 km on average. Based on online resale value calculators and Nexon EVs listed on several used car portals, the average price of a 5-year-old Nexon EV with the XZ Plus trim level is estimated between Rs 7.00 lakh to Rs 8.60 lakh (on average), based on the condition.

When we compare the current resale estimates from the vehicle's original ex-showroom price of Rs 14.99 lakh and the average on-road price of Rs 16.88 lakh, we come to a fair conclusion that the Nexon EV XZ Plus retains 41.5 percent to 51 percent of its original on-road value after a typical ownership of 5 years and 50,000 kilometres.

In India, the residual value of a pre-owned car depends on several factors such as brand reputation, car popularity, mileage, age, and demand in the used car market. Accounting for an 8 to 15 percent annual depreciation after the first year's 15 to 25 percent depreciation. The average residual value of a car in India after 5 years is between 30-40 percent. This means that the Nexon EV XZ Plus is on par with petrol-diesel cars when it comes to maintaining its value over a prolonged ownership.

Keep reading Times Now Auto for more interesting stories on electric cars and EV ownership.