Electric cars are gaining ground in India. All the same, a key factor that still keeps many buyers on the fence is the \u2018Battery.\u2019 Not only are batteries expensive, making electric cars comparatively more expensive than ICE cars, but they also degrade over time. Moreover, the thought of replacing a battery and bearing its cost is worrisome to many. This is where Battery as a Service steps in. Instead of buying the battery, just pay to use it. As simple as it sounds, it has turned out to be a radical development in the electric car industry and changed the way people look at electric cars.<\/p>\n\n\n\n
Battery-as-a-Service is a battery rental model, wherein the battery is separated from the electric vehicle\u2019s cost. You can buy an electric vehicle without buying its battery and pay to use its battery as much as you need to. In simpler words, you can use the EV\u2019s battery on a rental or subscription basis, and while the original owner of the battery is the service provider, who not only provides the battery as a subscription, but also ensures proper maintenance of the battery and replacement if needed. Analogically, it is similar to buying a phone and paying separately for the network services.<\/p>\n\n\n\n
ALSO READ:<\/strong> Best Electric Cars in India<\/a><\/p>\n\n\n\n The BaaS process is straightforward. You buy an electric car at a lower cost, as the battery cost is removed from the total price. Then you select the battery subscription plan according to your needs.<\/p>\n\n\n\n Depending on the service provider or car manufacturer, this can be done in two ways.<\/p>\n\n\n\n In the battery subscription model, you pay a monthly fee to use the battery. Essentially, you pay for the number of kilometres you plan to drive in a month. However, in most subscription models, you have to pay for a set minimum number of kilometres, for example, 1,500 km per month.<\/p>\n\n\n\n For instance, with the BaaS scheme, the price of the MG Comet EV starts from Rs. 4.99 lakh + 3.2 per km. So, the upfront ex-showroom cost of the Comet without the battery is Rs. 4.99 lakh, and for battery subscription, you may have to pay at least Rs. 3.2 X 1,500 = Rs. 4,800 monthly, depending on the finance partner of the car brand.<\/p>\n\n\n\n With the battery swapping model, instead of charging your electric car\u2019s battery, you swap it with a fully charged battery at a swapping station. The battery swapping model has not come to passenger electric cars yet, and it is mostly used in commercial fleets, delivery startups, gig workers.<\/p>\n\n\n\n ALSO READ:<\/strong> How do Electric Cars Work?<\/a><\/p>\n\n\n\n The key reason BaaS is becoming popular is affordability. As mentioned before, batteries are expensive, and an electric car\u2019s battery constitutes a large portion of its price. Once the battery\u2019s cost is removed from the EV\u2019s cost, the vehicle becomes significantly more affordable.<\/p>\n\n\n\n All the same, affordability is only one of the BaaS benefits.<\/p>\n\n\n\n Because you do not buy the battery of the electric car, the ex-showroom price of the car drops considerably. This attracts first-time budget-conscious electric car buyers.<\/p>\n\n\n\n For example, the price of the MG Comet EV with the BaaS scheme starts from Rs. 4.99 lakh + Rs. 3.2\/km, while its starting price, including the battery cost, is Rs. 7.50 lakh.<\/p>\n\n\n\n No matter how advanced the battery is, its health declines over time. With BaaS, you do not need to worry about replacing the battery, as battery replacement and servicing are usually part of the BaaS package provided by the service provider.<\/p>\n\n\n\n As battery technology advances with time, subscribers may get the option to access fresher and more economical battery packs, without having to worry about buying a new vehicle altogether.<\/p>\n\n\n\nHow Does BaaS Work?<\/h2>\n\n\n\n
Battery Subscription<\/h3>\n\n\n\n
Battery Swapping Model<\/h3>\n\n\n\n
Why is BaaS becoming Popular?<\/h2>\n\n\n\n
Advantages of Battery as a Service<\/h2>\n\n\n\n
Low upfront cost<\/h3>\n\n\n\n
Free of battery replacement worries<\/h3>\n\n\n\n
Option to upgrade<\/h3>\n\n\n\n