Tata’s Electric Vehicles Could Be 30% Cheaper: Company Ready to Launch Battery Rental Program Like MG
According to a report by MoneyControl, Tata Motors is preparing to launch a battery rental program similar to MG Motor India.
In this model, the cost of the battery is not included in the price of the electric vehicle, but instead, it is provided on a rental basis. This business model is known as ‘Battery-as-a-Service (BaaS).’
Electric Cars May Become Cheaper by ₹2 to ₹3.5 Lakh
Industry experts suggest that with the BaaS (Battery-as-a-Service) scheme, the prices of Tata’s electric vehicles could drop by ₹2 to ₹3.5 lakh (excluding the battery). Tata Motors’ electric portfolio includes models like Tiago EV, Tigor EV, Punch EV, Nexon EV, and Curvv EV.
According to the report, the company hopes to strengthen its market presence through this model. Offering the battery on rent could reduce the ex-showroom price of vehicles by 25% to 30%, making them more affordable for customers.
Planning is Still in the Works
According to the report, “There is a strong possibility that Tata Motors will offer the BaaS (Battery-as-a-Service) option, as customers are seeking affordable EV alternatives.
Potential customers are willing to pay a monthly rental for the battery, which makes operating the car economical. However, the company’s planning is still in the drawing board stage, and any final decision will be made only after a pilot run.”
JSW MG Motors First to Launch BaaS Scheme
The battery rental program was first launched in India by JSW MG Motor India with the Windsor EV, priced between ₹13,49,800 and ₹15,49,800. It can be purchased for ₹9.99 lakh (ex-showroom) including BaaS at ₹3.50/km.
Subsequently, the company also implemented this scheme in the Comet EV (starting price ₹4.99 lakh + battery rental ₹2.5/km) and the ZS EV (starting price ₹13.99 lakh + battery rental ₹4.5/km).
What is Battery-as-a-Service (BaaS)?
Battery-as-a-Service (BaaS) is a program that offers batteries on a rental basis. Under this model, the cost of the battery pack is not included in the purchase price of the electric car. Instead, you are charged based on your battery usage.
This means that the cost of the battery is collected as a rental fee according to the kilometers you drive, where you will pay it monthly as an EMI. However, you will need to make separate payments for charging the battery.
For first-time owners of MG cars, the program offers a lifetime warranty, a 60% buyback after three years, and one year of free charging at public chargers using the eHUB via the MG app.
