NEW DELHI: A Tata Punch EV priced at Rs 9.7 lakh can be driven home for Rs 6.5 lakh under a battery financing plan. Hyundai’s Creta Electric falls from Rs 18 lakh to Rs 11 lakh, while Maruti’s Grand Vitara EV becomes cheaper by almost Rs 8 lakh upfront.Those headline reductions are turning Battery-as-a-Service (BaaS) into a powerful sales tool in India’s EV market. But as more carmakers roll out battery subscription and financing models, the key question for buyers is shifting from “How much cheaper is the car?” to “How much will I actually pay over the life of the vehicle?”The upfront savings are real. So are the recurring battery payments, minimum monthly usage commitments and financing obligations that can add several lakh rupees to ownership costs over five-to-eight years.Current BaaS plans charge between about Rs 2.3 and Rs 5 per km, depending on the model. A driver covering 15,000 km annually under a Rs 4-per-km plan would pay about Rs 60,000 a year, or roughly Rs 3 lakh over five years, before taxes, escalation clauses or financing charges. The economics become more complicated where minimum monthly billing applies. Citroen’s eC3X requires payment for at least 2,000 km every month, translating into a battery bill of about Rs 4,520 even if actual usage is lower.

BaaS-ically cheaper?

Maruti Suzuki’s e Vitara has a disclosed minimum of 1,800 km per month, resulting in a minimum monthly battery charge of around Rs 7,200. Hyundai did not comment on offering BaaS for the Creta Electric, while Maruti did not respond to queries on the Grand Vitara EV.For buyers driving only 800-1,000 km a month, the effective battery cost per kilometre can rise sharply because unused kilometres are still billed. Many customers compare only the discounted ex-showroom price with the regular EV price, overlooking that BaaS creates two parallel payment obligations: A vehicle loan EMI and a separate battery payment. A Tata Punch EV buyer, for example, may pay a lower EMI on the vehicle, but the battery continues to be financed separately, narrowing the apparent savings over time.Carmakers, however, argue that BaaS is primarily a financing innovation that makes EVs more accessible. Tata Motors is describing BaaS as “primarily a financing tool, not a mobility service” that reduces the upfront acquisition cost of EVs.“Having said that,” the Tata Motors spokesperson added, “we are seeing and also believe that most customers prefer outright ownership of their EVs.”JSW MG Motor India, which introduced BaaS with the Windsor EV in 2024, says the model has gained traction. “Today, around 12-15% of our overall EV sales come through BaaS, which is available across our MG EV portfolio,” MD Anurag Mehrotra said.According to Mehrotra, the model lowers the upfront cost by separating the battery from the vehicle. He said an internal combustion engine car typically costs around Rs 8 per km to run, assuming petrol at Rs 100 a litre and fuel efficiency of 12 kmpl. Under MG’s Windsor BaaS model, customers pay Rs 4 per km for battery usage and roughly Rs 1 per km for charging, taking the total running cost to about Rs 5 per km. “For customers driving 60 km a day, the monthly saving can be over Rs 5,500. Over five-to-eight years, these savings can add up to Rs 3-5 lakh,” he said.