Tata Nexon EV BaaS Explained: Price, Payment Plan

As India’s first truly successful mass-market electric car, the Tata Nexon EV has led electric car adoption. Even today, as electric cars’ popularity is at an all-time high, the Nexon EV remains one of the best-selling electric cars. To make Nexon EV ownership more affordable, the Indian carmaker has begun selling it under a BaaS scheme, reducing the upfront cost by over Rs. 5 lakh. Here is an explanation of the Tata Nexon EV BaaS scheme, including its price and payment plan.

What is BaaS?

BaaS stands for Battery-as-a-Service. In BaaS, the battery’s cost is separated from the electric vehicle’s cost, and you do not pay for the battery when you purchase an electric vehicle. Instead, you use the battery as a service. Hence, the name – Battery-as-a-Service.

Now, the BaaS scheme has two types. One is to use a battery until it completely drains, then swap it for a fully charged battery at a swapping station. This BaaS model is generally used for commercial electric vehicles, like e-rickshaws. The other is a dual-loan model, wherein the battery’s cost is separated from the electric vehicle’s cost. You can buy the electric vehicle and pay monthly payments to use the battery.

Battery payments are more like a battery EMI, since they depend on the loan you take out. Meanwhile, you can buy the vehicle, whether on loan or in cash, without factoring in the battery price. Usually, the battery loan tenure is longer than the vehicle loan tenure.

ALSO READ: Battery as a Service (BaaS) Explained

Tata Nexon EV BaaS Prices

For the Tata Nexon EV, Tata is offering the BaaS scheme with variants powered by a 45-kWh battery. For reference, the Tata Nexon EV is offered with two battery packs: 30 kWh and 45 kWh. The Indian carmaker has revealed the BaaS price of only the lowest 45-kWh-battery-powered variant, Creative 45, and with BaaS, it costs Rs. 8.99 lakh with a battery subscription charge of Rs. 4.4/km. The brand is yet to reveal the full BaaS price list.

Before moving further, it is important to stress the battery subscription charge. The battery subscription charge, or per-kilometre cost, is basically the battery EMI divided by the number of kilometres you drive in a month. For the Tata Nexon EV, the Indian carmaker has fixed the battery subscription assuming daily driving of 60 km, or 1,800 km per month. This means your battery EMI will be at least Rs. 4.4 X 1,800 = Rs. 7,920.

Note: The battery subscription cost does not include RTO tax, Insurance, TCS, or other statutory taxes. You will have to pay taxes on the full value of the vehicle because you own the vehicle.

Tata Nexon EV BaaS Best Value

With the Nexon EV’s BaaS pricing, you will not need to pay the battery cost of Rs. 5.35 lakh upfront when you buy the vehicle. However, the battery loan will have a minimum EMI of Rs. 7,920. It can also be higher, depending on the approved loan.

Meanwhile, if you also finance the Nexon EV (without battery), which costs Rs. 8.99 lakh, you will pay its EMI separately from the battery EMI. To make the most of Tata Nexon EV BaaS, pay as much as possible upfront and take the minimum loan. To do this, you can buy the vehicle in cash and pay the battery EMI for battery use. Or, if you want to finance the vehicle as well, make the highest possible down payment to keep the EMI as low as possible.

Value Additions

The Tata Nexon EV comes with some standard benefits, such as:

•  Lifetime warranty on the battery pack for the first owner. However, if the car is resold, the warranty is reduced to 8 years/1,60,000 km for the second owner. The 8-year/1,60,000 km warranty duration is calculated from the day the vehicle was purchased as a brand-new model.
• Complimentary 7.2 kW AC Wall Box charger
• If the battery’s State of Health (SOH) drops below 70 per cent, the brand will repair or replace the battery.

Final Thoughts

The Tata Nexon EV BaaS scheme is great for someone looking to buy it with a minimum down payment. However, remember you’re buying the battery as a service: you will need a loan of Rs. 5.35 lakh and will pay at least Rs. 7,920 as the battery EMI. If you also finance the vehicle, the combined battery and vehicle EMI can feel like too much to pay every month. So, with Nexon EV BaaS, or any other electric car’s BaaS, the more you pay upfront for the vehicle, the more economical it is.

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