Tata introduces Battery-as-a-Service for all EVs: How it works
What's the story
Tata Motors has expanded its Battery-as-a-Service (BaaS) offering to all its electric vehicles (EVs). The innovative financing solution, which was earlier available for Tiago.ev and Punch.ev, now covers Nexon.ev, Curvv.ev, Sierra.ev and Harrier.ev as well. The BaaS model separates the battery cost from the vehicle's purchase price, allowing customers to finance them separately.
Financing options
How does BaaS work?
The BaaS model gives customers the option to buy an EV with or without the battery price factored in.
If they choose the latter, they can finance both the vehicle and battery separately through different loan accounts.
This flexibility is especially appealing for those looking for ways to make EV ownership more affordable.
The starting price of Tata's electric cars under this scheme ranges from ₹4.69 lakh (Tiago.ev) to ₹14.49 lakh (Harrier.ev).
Market response
Response to growing competition in EV financing
The expansion of BaaS to Tata's larger SUVs brings their upfront vehicle prices closer to lower price brackets.
This move is also a strategic response to the growing competition in EV financing.
Other automakers such as Mahindra and MG have also introduced similar schemes for their electric vehicles.
Hyundai Creta Electric, Kia Syros EV, Citroen e-C3X, and Toyota Ebella are some other models offering BaaS options.
Scheme details
Battery EMI depends on factors such as battery size
Tata's BaaS offering is a dual-loan finance product where the vehicle and battery are financed through separate accounts with flexible tenures.
The battery EMI depends on factors such as battery size, down payment and loan tenure.
The company has partnered with multiple financiers to give buyers a choice of financing arrangements.
There is no hidden battery down-payment cost in this scheme, ensuring transparency for customers.