Electric Vehicles

India’s ageing EV cabs find new lease of life in small towns

Pranav Balakrishnan

March 13, 2025 | 7 Min Read

Discarded by fleet operators in major metros, first-generation electric vehicles cabs are finding second careers in smaller cities where their limitations become strengths.

Key Takeaways

Older EVs are finding a second life in smaller towns, where shorter travel distances make limited battery range less of a concern
Resale prices have plummeted—EVs that once cost Rs 12 lakh are now selling for just Rs 2-3 lakh
In smaller cities, both upfront investment and running costs are lower than those of diesel-powered cars, making EVs a viable alternative.
Despite challenges like servicing and demand, the expansion of airports into smaller cities is likely to create new opportunities for EV cab operators.

With a record 18 electric vehicle (EV) launches slated for 2025, it's little wonder that automotive manufacturers in India are still pushing EVs as the hot new toys on the block. However, in India’s big cities—especially those where EV fleet operators such as BluSmart have hummed away for years now—it isn’t uncommon today to spot run-down EVs closer to the end of their lifecycles than the start.

EVs such as the Tata Tigor EV or Mahindra eVerito, for instance, which were once considered cutting-edge, are now endangered relics of the country’s first generation of EVs. For fleet operators who hitched their wagons to the electric revolution, these aging EVs are more trouble than they’re worth.

After just three to four years of commercial usage, the battery capacity of electric fleet vehicles drops sharply, often limiting their range to just 100-odd kilometres. This causes considerable downtime for operators, with cars stuck at charging stations or clogging up capacity at service centres, causing operational costs to spike.

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