Tata Motors is set to collaborate with online used car platforms to streamline the resale and exchange process for EV owners.

What Happened: Tata Motors is probing avenues to facilitate EV resale and exchange for owners seeking to upgrade to a new EV, as per a Business Standard report. The company is currently testing this initiative on a small scale with online used car marketplaces.

With the largest EV fleet in India, approximately 1.70 lakh units, Tata Motors has already begun working with the online used car marketplace, Spinny.

A spokesperson from Tata Motors told the business publication that the used EV market will follow the new EV market trend with a delay of 3-4 years. This is expected as early adopters shift to longer-range and more advanced EVs. The spokesperson also emphasized that used EVs will continue to hold strong value for those who wish to try a lower-cost EV.

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The report added that Tata Motors dealers in Mumbai have confirmed the emergence of customers wanting to exchange a Tiago or a Nexon EV for a new Tata EV. An executive from a used car marketplace also underscored the advantages of purchasing from a marketplace, including a warranty on the used EV.

Tata Motors’ initiative comes in the wake of its recent announcement to manufacture EVs in India for global markets, in collaboration with Jaguar Land Rover (JLR). The company’s plan to produce two different models on JLR's Electrified Modular Architecture (EMA) platform in India was revealed by N Chandrasekaran, the chairman of Tata Sons.

The company’s shares have been under pressure recently, with a 16% drop from the record highs. The decline was attributed to lower-than-expected August sales and a sell call on the stock by UBS.

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