Tata Sierra EV BaaS Explained: Price, Payment Plan

With the segment’s most spacious cabin, a host of premium features, and a long driving range, the Tata Sierra EV offers attractive value for its price. However, Tata has made the Sierra EV even more valuable by offering it with a BaaS scheme that slashes a great chunk of its upfront cost. Read on to learn everything about the Tata Sierra EV BaaS scheme.

What is BaaS?

BaaS means Battery-as-a-Service. With BaaS, you buy an electric vehicle without paying for its battery upfront. Instead, you use its battery as a service.

There are two ways to use battery-as-a-service. One is swapping a fully drained battery with a fully charged one at a designated swapping station. This model is generally used for commercial electric vehicles. The other is paying a monthly fee to the BaaS service provider for battery use.

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 Sierra EV BaaS Prices

The Tata Sierra EV’s BaaS price range starts at Rs. 11.99 lakh, with a battery subscription charge of Rs. 5.5/km. Tata is yet to reveal the full variant-wise BaaS price list for the Tata Sierra EV. The battery subscription charge for the Sierra EV’s larger 75 kWh battery pack can be more than Rs. 5.5/km.

First, let’s understand the battery subscription cost. The battery subscription cost is the approximate amount you spend on using the battery per kilometre you drive. Essentially, the battery subscription charge, or per-kilometre cost, is the battery EMI divided by the number of kilometres you drive in a month. Notably, the Rs. 5.5/km battery subscription charge for the Tata Sierra EV is based on a minimum of 60 km per day, which means 60 x 30 = 1,800 km every month. Therefore, the battery EMI will be around Rs. 5.5 X 1,800 = Rs. 9,900.

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 Sierra EV BaaS Best Value

With BaaS, the Tata Sierra EV battery costs Rs. 6.80 lakh. So, to use the battery as a service, you will take a loan of Rs. 6.80 lakh. The minimum battery EMI will be around Rs. 9,900, but it can be higher depending on the loan you get.

If you also finance the Sierra EV (without battery), you will need a separate loan of Rs. 11.99 lakh. For that, you’ll pay a separate EMI of around Rs. 20,000, assuming a 20 per cent down payment and a 5-year tenure. To make the most of Tata Sierra EV BaaS, pay as much as possible upfront and take the minimum loan. For 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 Sierra 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 10 years/2,00,000 km for the second owner. The 10-year/2,00,000 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

Saving the Rs. 6.80 lakh upfront on a Tata Sierra EV with BaaS is a great deal. However, remember it is not a discount, and you will eventually have to pay the full battery price, and that too with interest. Moreover, if you finance the battery with BaaS and also finance the vehicle, the combined vehicle and battery EMI can be nearly the same as, or even higher than, the EMI for financing the Tata Sierra EV as a single unit (battery + chassis). Remember that the more you pay upfront, the more advantageous the BaaS programme will be.

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