Battery-as-a-Service (BaaS) is emerging as a key strategy for automakers to reduce the upfront cost of electric vehicles (EVs), but the model could increase the overall cost of ownership over time due to recurring battery payments and financing commitments.
A Tata Punch EV priced at Rs 9.7 lakh can be purchased for Rs 6.5 lakh under a battery financing plan, while Hyundai's Creta Electric sees its upfront price fall from Rs 18 lakh to Rs 11 lakh. Meanwhile, Maruti Suzuki's Grand Vitara EV also becomes cheaper by nearly Rs 8 lakh initially under the model, according to a report by The Times of India .
However, while buyers benefit from lower acquisition costs, they are required to make recurring battery payments, with some plans also carrying minimum monthly usage commitments that can add several lakh rupees to ownership costs over five to eight years, the report said.
Current BaaS plans charge between about Rs 2.3 and Rs 5 per kilometre, depending on the vehicle. At a rate of Rs 4 per km, a customer driving 15,000 km annually would pay around Rs 60,000 a year, or nearly Rs 3 lakh over five years, excluding taxes, escalation clauses and financing charges.
The economics become more complex when minimum billing clauses apply. According to the report, Citroen's eC3X requires payment for at least 2,000 km every month, resulting in a minimum battery bill of about Rs 4,520 even if the vehicle is driven less. Maruti Suzuki's e Vitara has a disclosed minimum usage of 1,800 km a month, translating into a minimum battery charge of around Rs 7,200 monthly.
