Hyundai Motor India Ltd (HMIL) has introduced an assured buyback program for its Creta Electric, guaranteeing customers 60% of the vehicle's value after three years or 45,000 kilometers, whichever comes first.
The initiative addresses one of the primary barriers to electric vehicle adoption in India: uncertainty over residual values and total cost of ownership.
The buyback guarantee is designed to reduce the financial risk for early adopters, who often face steep depreciation curves with EVs due to rapid battery technology advancements and limited secondary market liquidity.
By underwriting the resale value, Hyundai is effectively subsidizing the long-term cost of the vehicle, making the Creta Electric more competitive against internal combustion engine rivals and other EV entrants in the compact SUV category.
This move aligns with broader industry trends where automakers are using financial instruments to drive EV sales.
As competition intensifies in India's passenger vehicle market, manufacturers are increasingly looking beyond upfront pricing to total cost of ownership metrics to attract buyers.