A recent report highlights a sharp rise in EV sales for Ather and Hero, and one major factor behind this growth is the BaaS model.
But what exactly does this model mean, and why is it reshaping India’s EV market?
What Is BaaS (Battery-as-a-Service)?
- Battery-as-a-Service (BaaS) is a pricing model where the customer purchases the electric vehicle without the battery.
- Instead of owning the battery - the most expensive component of an EV - users rent it through a subscription.
- This significantly reduces the upfront purchase cost, making EVs more accessible to a wider audience.
A Real Example:
Take the Ather Rizta 450:
- Regular price: Approximately ₹1,20,000
- Price with BaaS: Drops to roughly ₹85,000
Why the drop?
Because the battery, typically costing ₹60,000–₹80,000 isn’t included in the purchase.
This lower entry price is one of the biggest reasons buyers are now more willing to choose EVs.
How the Battery Rental Plan Works
The rental model is straightforward:
- You pay ₹1 per km
- Minimum 1,000 km per month
- Duration:48 months
- Includes 1 year of free EV charging at EV charging stations
This structure allows consumers to manage expenses better by spreading costs across usage rather than paying a heavy amount upfront.
What Happens After 48 Months?
Once the rental term ends, the consumer has two options:
1. Keep the Vehicle
Purchase the battery and continue using the scooter as usual.
2. Resell the Scooter
Depending on usage and condition, the rider can receive up to 50% of the ex-showroom price.
This flexibility makes the BaaS model appealing and reduces long-term ownership risk.
Why BaaS Increased EV Sales
By removing the largest cost barrier (the battery), Ather and Hero made their EVs more affordable and less risky to own.
The result? A significant surge in sales and a wider EV adoption curve.
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