For years, luxury EV buyers in India worried about one question above all else: what happens when the battery ages and resale values collapse?
That fear had triggered steep corrections across the used luxury EV market, with affluent buyers often treating pre-owned electric cars as distressed assets vulnerable to rapid technology upgrades and weak resale confidence.
Mercedes-Benz India Managing Director Santosh Iyer now says that psychology is beginning to change.
According to Iyer, affluent buyers are increasingly benchmarking luxury EVs against replacement costs rather than traditional depreciation curves, helping premium electric vehicles such as the Mercedes-Benz EQS retain stronger residual values in the secondary market.
“Mercedes-Benz vehicles (both ICE and BEVs) command comparatively higher RV owing to lesser availability in the organized market due to longer ownership cycles,” Iyer told businessline. “EQS SUV is Mercedes-Benz’s best-selling luxury BEV spearheading our BEV offensive, having exceptionally high demand.”
Dealers say the improving residual-value trend is now becoming visible across flagship luxury EVs in the secondary market.
Two-year-old Mercedes-Benz EQS models that were trading around ₹75 lakh are now moving closer to ₹85 lakh as tightening supply and rising replacement costs narrow the gap between new and used luxury EV pricing.
The shift comes at a time when India’s premium automotive market is witnessing repeated OEM price hikes, import-linked inflation and rising replacement costs across luxury vehicles.
Industry executives say the widening gap between new-car pricing and relatively new used inventory is increasingly pushing affluent buyers toward near-new luxury vehicles, especially in the top-end segment.
Industry executives say tighter supply in the organised luxury used-car market is also helping support residual values for flagship Mercedes-Benz EVs and top-end ICE models.
“With high product substance and a consistent pricing discipline, we have been able to offer higher RVs to our customers,” Iyer said.
Battery anxiety is reducing
The recovery in luxury EV resale sentiment marks a significant shift from the market environment seen over the last two years, when buyers aggressively arbitraged depreciation in premium EVs amid concerns around battery longevity and future resale value.
Now, industry executives say affluent consumers are gradually becoming more comfortable buying pre-owned luxury EVs as battery confidence improves and EV ownership becomes more mainstream among urban premium buyers.
One of the biggest triggers behind this shift is the growing acceptance of transferable long-duration battery warranties.
“The brand warranty for HV batteries offered by Mercedes-Benz ranges from 8 years to 10 years depending on the specific models which are transferable to the subsequent owner,” Iyer said.
Luxury buyers still want top-end ICE
The trend is visible not only in electric vehicles but also in high-end internal combustion luxury vehicles, where scarcity economics continue to play a major role.
Demand for flagship ICE models such as the GLS, S-Class and Mercedes-Maybach remains resilient in both new and pre-owned markets, supported by limited supply, long waiting periods and rising replacement costs.
Industry executives say top-end ICE models such as the GLS, G-Wagon and Mercedes-Maybach continue to command strong resale values because of limited availability and long waiting periods in the premium segment.
“Share of our top-end vehicles segment has been growing steadily as the demand for new GLS, S-Class and Mercedes-Maybach remains resilient,” Iyer said.
As more affluent buyers enter the premium EV resale market, luxury carmakers are also trying to reduce battery-related anxiety through transferable warranties and factory-backed diagnostics.
Iyer said Mercedes-Benz has introduced a High-Voltage Battery Report through authorised workshops to help improve transparency around battery condition in pre-owned EVs.
“This HV Battery Report alleviates customer concerns regarding battery status by presenting a verified and documented parameter from Mercedes-Benz,” he said.