Tata Motors has expanded its Battery-as-a-Service (BaaS) scheme across its entire electric vehicle portfolio in India, allowing customers to save on the purchase of the Tata EV. Now Tata has added the Nexon EV, Curvv EV, Sierra EV, and Harrier EV to its BaaS program. Up to now, the scheme only works with the Tiago EV and Punch EV.
Tata Motors now offers BaaS options in all electric car ranges. The move will give customers another way to buy an electric vehicle and separate the cost of the vehicle from the battery and charge for battery usage through a per-kilometre rental charge.
In the BaaS model, customers do not pay the full battery cost as part of the vehicle’s upfront purchase price. The battery is provided under a usage-based rental arrangement, thereby lowering the initial acquisition cost of the EV, and the customer pays a fixed amount per kilometre for battery usage. The available rental is based on battery capacity and the financing arrangement, including down payment and loan tenure.
The upfront pricing is reduced significantly for Tata's electric vehicles. The BaaS scheme lowers the starting price between Rs 2.30 lakh and Rs 7.30 lakh depending on the model, it says. The Tiago EV gets the smallest reduction of Rs 2.30 lakh, and the Harrier EV receives the largest one of Rs 7.30 lakh.
The Nexon EV gets a price cut of Rs 5.35 lakh under BaaS, while the Curvv EV is Rs 6.20 lakh less on the starting price. The Sierra EV is reduced by Rs 6.80 lakh. The proposed prices are going to make Tata's electric vehicles more affordable for those who are looking for a lower initial purchase price.
With the latest structure, the Tata Tiago.ev with a 19kWh battery is starting at a BaaS price of Rs 4.69 lakh, and the battery rental is Rs 2.6 per km. The Punch.ev with a 30kWh battery is priced at Rs 6.59 lakh, and the battery rental is Rs 2.6 per km.
The Nexon.ev with a 45kWh battery has a starting BaaS price of Rs 8.99 lakh, and the battery rental is Rs 4.4 per km. The Curvv.ev with a 55kWh battery is priced at Rs 10.99 lakh, and the battery rental is Rs 5 per km.
The newly introduced Sierra.ev with the 63kWh battery starts at Rs 11.99 lakh under the BaaS structure, with a battery rental of Rs 5.9 per kilometre. The Harrier.ev with a 65kWh battery is starting at Rs 14.49 lakh, with a battery rental of Rs 5.9 per kilometre and is available on BaaS for the BaaS customers.
Tata Motors says its BaaS model offers consumers more flexibility when comparing ownership costs of electric vehicles. The buyer could still buy an EV with a conventional model where the battery is included in the vehicle price or opt for BaaS to save more on the initial investment.
Vivek Srivatsa, Chief Commercial Officer at Tata Motors, said the company was asking customers who consider purchasing a Tata EV to have the flexibility to compare the different ownership options. The BaaS is to extend the portfolio and to make it cheaper to buy the EV and battery and to buy the BaaS model to buy it.
The expansion comes as battery costs are still very much a part of the price of electric vehicles. Since the battery is a major component of an EV's manufacturing cost, separating the battery payment from the vehicle's upfront price can make electric cars look cheaper at the time of purchase.
However, buyers who will consider the BaaS option will have to take into account the ongoing battery rental per km of the vehicle when calculating their overall ownership expense. So the true cost benefit could vary by the vehicle and by the customer's financing arrangement.
Tata Motors has now made BaaS available from the Tiago.ev and Punch.ev to the Nexon.ev, Curvv.ev, Sierra.ev, and Harrier.ev. The company is now offering customers the option of owning an EV and a lower-upfront-cost BaaS model across its entire range.
