The Top 5 Must-Know Issues for EV Buyers in India

India has registered over 7 million electric vehicles (EVs) so far, and the numbers keep rising as enthusiasm for cleaner vehicles continues to grow. While the benefits are well known, buyers are generally ill-informed about other issues. 

In this blog, we look at the five issues an EV buyer must be prepared for before considering an EV as a choice.

#1 Insurance-related Issues

Insurance costs in an EV are significantly higher compared to ICE counterparts, from about 49 percent more compared to ICE in the US to above 70 percent in the UAE. Here’s why. 

Unlike ICE vehicles, in which many different parts are assembled for various functions, the EV’s most important component is its battery, and the costliest one, roughly half the total price of the EV. One problem with it, however, is that the battery’s efficiency starts to degrade after 8-9 years. While it still works, the range decreases significantly. Hence, the insurance price gap is primarily due to higher repair costs, particularly for specialised components like batteries. In the case of cars submerged in floods, it becomes a lost cause.

For instance, a case from July 2025 involved an owner of BYD Seal, a premium electric sedan, from Noida who was slapped with an INR 18.35 lakh battery replacement bill just two months after purchasing the car. Despite paying INR 1.2 lakh for insurance and being assured of complete battery protection, both the manufacturer's warranty and the insurance company denied coverage for flood damage. 

#2 Servicing Issues

Compared to traditional internal combustion engine (ICE) vehicles, EVs require specialised service networks. Notably, public charging stations rose from 5,151 in 2022 to 29,277 by August 2025, which are run by 83 Charge Point Operators (CPOs), according to the Ministry of Power. However, there is a dearth of EV servicing points, raising a major issue of after-sales services like repairs and maintenance. This is also due to the lack of a skilled workforce. 

While traditional mechanics are trained in ICE maintenance, like oil changes, fuel filters, spark plugs, or emission checks, they lack the skills essential for EV maintenance, which focuses on the high-voltage batteries, electric motors, and power electronics.

As per one report, 85 percent of mechanics are not equipped to safely work on EV components, and only 5-10 percent of garages in India have the necessary tools and safety protocols. While it is true that fewer moving parts mean fewer repairs and maintenance required, it doesn’t mean it will never be needed. 

Thus, EV servicing issues become a major factor for many, especially the suburban and rural dwellers. The technicians in tier-2 and tier-3 cities often lack exposure to quality standards.

#3 Low Resale Value

The future of mobility is not as attractive as its ICE counterparts when out for resale. In fact, second-hand EVs are depreciating at twice the rate. As per an Investment Banker, Sarthak Ahuja, EVs lose their value by over 40 percent in about 2 years compared to 20 percent for ICE vehicles. 

This is a huge issue to be considered by the EV buyers who would like to keep options open for EV resale in the near future. This is largely due to the uncertainty of battery condition. As it stands, there exists no battery health meter, and every manufacturer uses their own software. The absence of a standard measure to independently evaluate the health of an EV battery leaves it to the luck of a buyer of resale.

Moreover, with EV tech advancing quickly, newer models often offer better range, pushing the older ones toward “expiry” even faster. 

#4 Charging Costs Outside Home

While home charging is economical, public charging costs can be significantly higher - often 2-3 times the cost of residential electricity. As per one analysis, EV charging at home costs between INR 6-8 per kWh. Thus, a 30 kWh battery would be fully charged at around INR 180-240. In case of public charging, rates of INR 18-24 per kWh are generally applicable for DC fast charging. Thus, for the same battery to get fully charged, it will cost around INR 540-720, roughly three times the residential option. 

The flipside is that a wall-mounted AC charger in a residential setting would take the whole night, while the publicly available DC chargers take less than an hour for up to 80 percent charging.

Even the Public AC charging typically costs between INR 6-12 per kWh, depending on the operator and city. This is not even desirable in many cases anyway, as it takes considerable time to charge. 

This disparity can dramatically impact the overall cost-effectiveness of EV ownership for those who rely on public infrastructure.

#5 Spare Parts Availability Crisis

This is a supply-side issue. The availability of EV spare parts remains a persistent challenge across India. A 2025 report highlighted how parts shortages have slowed electric bus production, with major players like Olectra Greentech, Tata Motors, and JBM struggling with delayed deliveries due to the limited supply of components, particularly chassis and batteries. This shortage extends to the passenger vehicle segment as well.