Tata.ev and others expand Battery-as-a-Service for electric vehicles

Several automotive manufacturers are expanding Battery-as-a-Service (BaaS) models in India, a financing arrangement that separates the cost of the battery from the vehicle to lower upfront purchase prices.

Tata.ev has extended its BaaS program across its entire electric vehicle portfolio, including the Tiago. ev, Punch. ev, Nexon. ev, Curvv. ev, Sierra. ev, and Harrier. ev. For example, the Tiago. ev starting price drops from ₹6.99 lakh to ₹4.69 lakh under this scheme, with a battery usage cost of ₹2.6 per km. The Nexon. ev sees a reduction from ₹14.34 lakh to ₹8.99 lakh, with a usage cost of ₹4.4 per km.

Other manufacturers are also utilizing the model. The Hyundai Creta Electric offers a claimed upfront reduction of ₹7.04 lakh, bringing its BaaS price to ₹10.99 lakh. Maruti Suzuki’s e Vitara is available starting at ₹10.99 lakh with a battery rental of ₹3.99 per km. The MG Comet EV is listed at ₹4.99 lakh under BaaS compared to ₹7.63 lakh conventionally, with a rental fee of ₹3.20 per km.

While BaaS significantly reduces the initial acquisition cost, consumers remain responsible for ongoing per-kilometre battery rental or financing fees, meaning total ownership costs depend on total distance driven.