Electric Vehicle - Warranty and Resale

Explore the exciting world of electric vehicle (EV) resale value. Discover how EVs hold their worth, even after years on the road, and how their robust warranties provide a safety net as you journey into the world of clean energy transportation.

Make an investment that pays off not just in savings, but in the future value of your eco-friendly ride.

What can influence your EV resale value?

Planning your EV purchase? Make the confident choice and explore resale possibilities and warranty information on your electric vehicle.

How do EVs fare with their resale values?

• Number of EV owners is growing rapidly: As the government has been pushing for monetary incentives and with the growing awareness with respect to environmental impact, annual EV sales have seen over a 180% growth in 2023 compared to 2022*. This growth therefore will lead to a growing resale market for EVs.
• Will achieve price parity with fuel-powered vehicles: In the Western markets, the declining battery costs will be a huge contributor to electrical vehicles becoming the preferred choice of car. It is projected that EVs will comprise two-thirds of global car sales by the end of the decade.
• Higher the range, better the resale value: EVs with longer ranges, such as 400 kilometres, exhibit higher resale values (73%) compared to those with shorter ranges, like 160 kilometres (67%). This difference is particularly noticeable in the short term, possibly due to their versatility for longer trips and easier access to charging infrastructure, enhancing their resale appeal.
• Manufacturer buy back programmes: These initiatives offered by various manufacturers encourage the purchase of EVs by guaranteeing a predetermined value when the owner decides to sell or exchange the vehicle after a certain period. MG also offers a buy back program and assures the resale value for the buyers.

*Battery Ecosystem in India and Gujarat – WRI India Ross Center

What is MG Buy Back Plan and why should you consider the MG Buy Back Plan?

MG Buy Back Plan offers consumers a guaranteed resale value for their vehicle at the end of a specified period. Under this plan, customers can return their MG car after three years and get 50% of the original ex-showroom value.

• Guaranteed resale value: With this plan, MG customers will receive guaranteed resale value on their cars. The MG Comet EV gets you 60% of the original ex-showroom value and the MG ZS EV gets you 50% of the invoice price, at the end of 3 years.
• Lower risk of depreciation: The regular maintenance of the MG EV coupled with declining battery prices will ensure a slow depreciation of your car. Therefore, lower the depreciation will ensure a higher resale value for your MG EV.
• Ease of replacement: Under the buy back program, customers can keep, surrender or upgrade to any other MG car, making it simple and easy to level up.
• Financial predictability: With the buy back program, you can plan your finances accordingly to not make a huge dent to your finances.

And, what about warranty coverage?

Most EV manufacturers provide extensive warranties that cover the vehicle as well as battery. With the MG ZS EV, you can get 8 years warranty or 1.5 lakh kms on your battery, as well as 3 years warranty on unlimited kms on your car with the MG E-Shield services.

Insurance products for batteries generally belong to two main categories: battery warranty and battery insurance.

• Battery Warranty: It guarantees a seamless experience — if the battery falters prematurely or falls short of expectations, rest assured, replacement or repair comes at no extra expense.
• Battery Insurance: This specialised insurance safeguards against risks like theft, damage, or unforeseen capacity loss. Offering both financial protection and peace of mind, it's a crucial asset for EV owners.
• The “Battery Secure Add On” Insurance: While its coverage specifics may vary between providers, damages such as those caused by sudden power surges during charging, water ingress, or short circuits are generally covered, ensuring comprehensive protection.

Are EVs and HEVs treated equally in terms of coverage?

• Insurance coverage differs among providers based on factors like vehicle make and model, battery capacity, and the specific policy.
• EVs: They operate entirely on electric power, relying solely on large, high-capacity batteries. Some insurers may offer specialised coverage for EV batteries due to their higher cost.
• HEVs: They combine an internal combustion engine with an electric motor and a smaller battery. Insurance for HEVs may resemble that of traditional vehicles, covering both the conventional engine and electric components.

Your step-by-step guide to filing a claim for battery-related issues.

• Immediate Contact: Reach out to your insurance provider immediately to report the issue along with important information like the policy number.
• Documentation and Policy Review: Document the problem through photographs or videos to strengthen your claim and review your insurance policy to understand coverage for battery-related issues.
• Claim Forms: Complete any required claim forms promptly and provide all requested information to make the claims process faster.
• Adjuster Assessment and Approval: In certain cases, an insurance adjuster may inspect the issue to evaluate damage extent. Once approved, the insurance provider will guide you through the repair or replacement process.

Beyond the standard exclusions that apply to any vehicle insurance, there are specific EV or battery-related exclusions that insurers might enforce. Failure to adhere to original equipment manufacturer (OEM) guidelines for battery charging or maintenance, unauthorised repairs without prior approval, and claims arising from general wear and tear may lead to outright claim rejections.