Mahindra cuts upfront EV prices by ₹8L with BAAS program
What's the story
Mahindra & Mahindra is moving a flat ₹8 lakh out of the upfront vehicle price of its entire Electric Origin SUV lineup under its Battery-as-a-Service (BAAS) financing program. The initiative separates battery costs from vehicle prices and finances them through a second contract. This strategy is aimed at making electric vehicles (EVs) more affordable for consumers.
Market impact
Mahindra's e-SUVs now more competitively priced
The upfront prices have brought Mahindra's electric SUVs into the ₹11.45 lakh to ₹13.90 lakh range, making them more competitive with other brands such as Tata Motors and JSW MG Motor India.
The BE 6 SPORTEQ now starts at ₹11.45 lakh under BAAS, while the Tata Curvv.ev starts at ₹12.49 lakh after a similar battery financing scheme.
Program expansion
BAAS program also covers larger battery packs
Mahindra's BAAS program isn't limited to the 59kWh variants of its electric SUVs.
It also covers larger 70kWh and 79kWh battery packs, bringing capacities usually found in much more expensive EVs into the initial price filter for mass-market SUV shoppers.
The company advertises an effective battery usage cost of ₹3.75 per kilometer, based on a monthly battery payment starting at ₹6,975 and an illustrative usage of 60km per day or about 1,860km per month.
Strategy insight
BAAS pricing may serve more as a customer-acquisition tool
The increasing prominence of BAAS pricing may serve more as a customer-acquisition tool than an ownership model.
Separating the battery allows an EV maker to advertise a significantly lower vehicle price, attracting shoppers who may have previously filtered out the model on price.
Once inside, most can still opt for traditional financing that includes the battery.