New Delhi. Tata Motors could soon cut the price of its electric cars by up to 30%. According to a report by Money Control, the company plans to launch a ‘Battery-as-a-Service’ (BaaS) model on the lines of MG Motor India, where the cost of the battery will be separated from the price of electricity for vehicles and IT is given for rent.
Electric vehicles can become cheaper by Rs 2 to 3.5 lakh
According to industry experts, this system of renting batteries separately can reduce the prices of Tata’s electric vehicles by Rs 2-3.5 lakh. Customers only pay the vehicle price and the rent for the battery. Currently, Tata Motors’ electric portfolio includes Tiago EV, Punch EV, Nexon EV and Curve EV.
Plan to increase market presence
Tata Motors hopes to further strengthen its market position with the Battery-as-a-Service model. Battery rental will reduce the ex-showroom price of electric vehicles by 25 to 30%, which will motivate more and more customers to purchase these vehicles.
According to the report, Tata Motors is currently planning this model on the drawing board. However, chances are good that the company will launch it soon. Tata’s potential customers are willing to adopt this model as it offers them an economical driving option.
MG Motor introduced the first BAAS program
MG Motor India was the first in India to launch this battery rental program with its Windsor EV. Under this program, customers can drive by paying a battery rental of Rs 3.50 per kilometer. Later, MG also implemented this scheme in Comet EV and ZS EV.
What is the Battery as a Service program?
Battery-as-a-Service (BaaS) is a system in which the price of the battery is separate from the price of the vehicle. Customers pay fare based on battery usage. This means that the battery tariff is calculated according to the distance traveled by the vehicle. For this, customers have to pay monthly rental (EMI), but battery charging needs to be paid separately.
MG Motor also offers its customers many attractive options as part of the battery rental program. Services include lifetime warranty for the first owner, 60% buyback after three years and one year free recharge on eHUB via MG app.
Tags: car news, Tata Motors
FIRST PUBLISHED: October 19, 2024, 6:50 PM IST