Mass-premium EVs such as the MINI Cooper SE are still correcting sharply in the secondary market | Photo Credit: KARUNAKARAN M

Prices of pre-owned luxury EVs such as the BMW i7, Mercedes-Benz EQS and Audi e-tron are rising sharply in India’s used luxury vehicle market, while top-end ICE SUVs such as the Defender, G-Wagon and Mercedes-Maybach continue to command near-new valuations amid tightening supply, rising replacement costs and resilient premium demand.

Used luxury EV resale values have rebounded from recent lows as improving buyer confidence, tighter supply and repeated OEM price hikes reshape residual-value dynamics across India’s premium automotive market.

“Prices should ideally have fallen further after the new year, but instead they have started moving up,” said Jatin Ahuja, Founder of luxury used-car platform Big Boy Toyz (BBT). “This trend has only started becoming visible in the last 15-30 days.”

BBT clarified that the luxury EV and premium ICE market is not witnessing appreciation over original invoice prices, but rather a recovery in secondary-market valuations after an initial steep correction phase in luxury EVs and continued supply tightness in high-demand ICE segments.

“Until recently, affluent buyers were arbitraging depreciation by picking up luxury EVs after massive price collapses triggered by battery anxiety and weak resale confidence. What has changed now is that buyers are no longer viewing luxury EVs purely as distressed assets available at deep discounts,” Ahuja told businessline.

Residual values diverge across segments

Mercedes-Benz India Managing Director Santosh Iyer said the company is also witnessing stronger residual-value stability across both luxury EVs and ICE vehicles.

“Mercedes-Benz vehicles (both ICE and BEVs) command comparatively higher RV owing to lesser availability in the organised market due to longer ownership cycles,” Iyer said. “EQS SUV is Mercedes-Benz’s best-selling luxury BEV spearheading our BEV offensive, having exceptionally high demand.”

Industry executives say the improving residual-value trend is now becoming visible across flagship luxury EVs in the secondary market.

A 2024 BMW i7 that had corrected to around ₹1.25–1.30 crore late last year is now seeing stronger resale movement at around ₹1.45 crore, while two-year-old Mercedes-Benz EQS models that were trading around ₹75 lakh are now moving closer to ₹85 lakh. Audi e-trons that had corrected to ₹65–68 lakh are now witnessing stronger resale movement at ₹75–78 lakh.

Scarcity premium extends beyond EVs

The divergence in residual values is becoming increasingly visible across the luxury vehicle market, extending well beyond EVs.

Demand for pre-owned luxury SUVs such as the Land Rover Defender, Range Rover, Mercedes-Benz GLS, G-Wagon and Maybach has remained exceptionally strong because of tight supply, long waiting periods and repeated showroom price hikes.

“Share of our top-end vehicles segment has been growing steadily as the demand for new GLS, S-Class and Mercedes-Maybach models remains resilient,” Iyer said.

“A one-year-old Defender still sells at almost 90 per cent of its value,” Ahuja said, adding that several high-demand SUVs are no longer witnessing normal depreciation cycles.

Dealers say a Mercedes-AMG G63 with an original on-road price of about ₹4.2 crore is still commanding ₹3.5–3.7 crore in the resale market because of immediate-delivery premiums and limited availability.

However, the divergence is also becoming sharper at the lower end of the market. Entry-level luxury ICE vehicles such as older BMW 320d models continue to witness steep traditional depreciation, while mass-premium EVs such as the MINI Cooper SE are still correcting sharply in the secondary market.

Industry executives say the strongest recovery is currently concentrated in flagship luxury EVs such as the BMW i7, Mercedes EQS and Audi e-tron, while top-end ICE SUVs continue to benefit from scarcity economics and immediate-delivery premiums.

Why luxury EV prices are recovering

Industry executives say the rebound is being driven by improving consumer confidence, fading battery anxiety and growing acceptance of premium EVs in the second-owner market.

“The mental block around EVs is clearing,” Ahuja said. “For many people now, a car is simply a machine to go from point A to point B.”

Iyer said Mercedes-Benz has introduced a High-Voltage Battery Report through authorised workshops to 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.

Dealers say transferable battery warranties are also helping reduce concerns around expensive battery replacement costs for second-hand buyers.

Repeated OEM price hikes, freight inflation and import-related uncertainties have further narrowed the gap between new and used EV prices, pushing up resale values.

In ICE luxury vehicles, however, the market is being driven more by scarcity economics, with buyers willing to pay premiums for immediate availability of high-demand SUVs and performance cars.

“Lamborghini prices have also gone up,” Ahuja said, noting that naturally aspirated performance cars are becoming increasingly rare globally as the industry shifts toward electrification and tighter emission norms.

Porsche, however, remains an exception, with some buyers delaying purchases in anticipation of future pricing adjustments.

Dealers say improving battery transparency and transferable warranties are gradually helping reduce anxiety around pre-owned luxury EV ownership.

Published on May 31, 2026