New Delhi: A Tata Punch EV priced at Rs 9.7 lakh can be driven home for Rs 6.5 lakh under the battery financing scheme. The price of the Hyundai Creta Electric falls from Rs 18 lakh to Rs 11 lakh, while Maruti’s Grand Vitara EV becomes cheaper by around Rs 8 lakh up front.These major cuts are turning Battery as a Service (BaaS) into a powerful sales tool in India’s EV market. But as more automakers roll out battery subscription and financing models, the main question for buyers is shifting from, “How much is the cheapest car?” to “How much will I actually pay over the life of the car?”The savings offered are real. So do recurring battery payments, minimum monthly usage commitments and financing commitments that can add several thousand rupees to ownership costs over five to eight years.Existing BaaS plans charge between Rs 2.3 and Rs 5 per km, depending on the model. A driver covering 15,000 kilometers per year under the Rs 4 per km plan will pay around Rs 60,000 per year, or nearly Rs 3 lakh over five years, before taxes, escalation terms or finance charges. Economics get more complicated when minimum monthly bills apply. Citroen’s eC3X requires driving at least 2,000 km every month, which translates to a battery bill of around Rs 4,520 even if the actual usage is less.
BaaS is naturally cheaper?
The Maruti Suzuki e Vitara has a minimum range of 1,800 km per month, resulting in a minimum monthly battery charge of around Rs 7,200. Hyundai did not comment on offering BaaS for the Creta Electric, while Maruti did not respond to queries related to the Grand Vitara EV.For buyers who only drive 800 to 1,000 kilometers a month, the actual battery cost per kilometer can rise sharply because unused kilometers still drive bills. Many customers just compare the discounted ex-showroom price and the price of a regular electric vehicle, ignoring that BaaS creates two parallel payment obligations: an EMI for the car loan and a separate payment for the battery.
For example, a buyer of a Tata Punch EV might pay a lower monthly premium on the car, but the battery continues to be financed separately, narrowing the apparent savings over time.However, automakers see BaaS primarily as a financing innovation that makes electric vehicles more accessible. Tata Motors describes BaaS as “primarily a financing tool, not a mobility service” that reduces the upfront acquisition cost of EVs.“Having said that, we also see and believe that most customers prefer full ownership of their electric vehicles,” the Tata Motors spokesperson added.JSW MG Motor India, which introduced BaaS with the Windsor EV in 2024, says the model has gained traction. “Today, about 12-15% of our total EV sales come through BaaS, which is available across our MG EV portfolio,” Managing Director Anurag Mehrotra said.According to Mehrotra, the model reduces the initial cost by disconnecting the battery from the vehicle. He said a car with an internal combustion engine typically costs around Rs 8 per kilometre, assuming petrol at Rs 100 per liter and fuel efficiency of 12 kilometers per litre. Under MG’s Windsor BaaS model, customers pay Rs 4 per km for battery usage and about Rs 1 per km for charging, making the total running cost around Rs 5 per km. “For customers who drive 60 km daily, the monthly savings can reach over Rs 5,500.
Over five to eight years, these savings can amount to Rs 3-5 lakh.”