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​Automobile Desk – The craze for electric vehicles (EV) is increasing rapidly in India, but their higher starting prices compared to traditional ICE (petrol-diesel) vehicles still remain a big challenge for common buyers. To overcome this bottleneck and make EVs accessible to every segment in the Indian market, vehicle manufacturing companies are rapidly adopting the ‘Battery-as-a-Service’ i.e. BaaS model.

​BaaS technology is a unique structure, under which the customer does not have to pay in full for the most expensive component of the vehicle i.e. ‘battery’ while purchasing the vehicle. The price of the vehicle and the battery are separated. The buyer pays only for the body and motor of the vehicle, while the battery is rented from the company. Customers pay its fare on the basis of their daily or monthly running (per kilometer). This not only reduces the initial ex-showroom price of the vehicle by 30 to 40 percent, but also reduces the loan amount and monthly installments (EMI) burden by half.

​With the arrival of this model in the Indian automobile market, the prices of electric cars from budget segment to premium segment have become quite competitive:

​Tata Tiago.ev: This popular hatchback from Tata is generally available at a starting price of ₹ 6.99 lakh. But with BaaS option it can be bought for only ₹4.69 lakh. For this the customer has to pay a battery rent of ₹ 2.60 per kilometer.

​MG Comet EV: The actual price of this compact car from MG, which is preferred for urban use, is ₹ 7.63 lakh. By opting for the BaaS plan, this car can be brought home at a starting price of just ₹4.92 lakh, with a applicable charge of ₹3.20 per kilometre.

​Tata Punch.ev: The typical starting price of Tata Punch EV in the micro SUV segment is ₹9.69 lakh. However, under the BaaS scheme, its price comes down to ₹6.49 lakh and its battery rental has been fixed at ₹2.60 per kilometer.

​Kia Syros EV: Kia’s new Syros EV is priced at ₹ 13.49 lakh without BaaS. Through this special plan, it can be purchased at a starting price of ₹ 7.99 lakh. In this, battery charge of ₹ 3.30 per kilometer has to be paid.
​Maruti Suzuki e Vitara: Maruti’s first electric SUV e-Vitara has a regular price starting at ₹ 15.99 lakh. The BaaS option brings its ex-showroom price straight down to ₹10.99 lakh. According to its different variants, the battery fare has been fixed at ₹ 3.99 to ₹ 4.39 per kilometer.

​The biggest advantage of the BaaS model is that the buyers who used to be apprehensive about the battery getting damaged or its replacement cost after a few years, have completely lost their fear. Since the battery is owned by the company and is on rent, the entire responsibility for its health, performance and warranty lies with the service provider. This system has emerged as a new option for those adopting electric vehicles in low budget.