Tata Motors’ BaaS (Battery as a Service) model will allow Nexon EV, Punch EV, Tiago EV, Tigor EV and Curvv EV to quote lower Ex-sh prices
Today, there are more electric cars to choose from, than there were a couple of years ago. Also, there are more purchasing options today, further accelerating EV adoption. Appealing to buyers more, is the new BaaS programs introduced by MG Motor, quoting significantly lower upfront Ex-sh prices.
In a bid to retain its market share in electric car segment and offer significantly lower Ex-sh prices, Tata Motors is reportedly working to introduce BaaS model with their electric lineup. When launched, Tata’s BaaS program might be available with Nexon EV, Punch EV, Tiago EV, Tigor EV and the recently launched Curvv EV.
Tata Nexon EV BaaS
India’s leading electric car manufacturer, Tata Motors, leads the segment with around 65% market share. But there is a considerable 14.57% drop in sales YoY in August 2024. The company is now reportedly considering launching BaaS programs of its own to quote significantly lower Ex-sh prices. Launch timeline is still unknown.
JSW MG Motor India was the first to launch BaaS (Battery as a Service) program in India. Starting with Windsor EV, JSW MG Motor India has redefined electric vehicle pricing and then extended their BaaS model to include Comet EV and ZS EV. Customer reception seems to be very positive towards BaaS concept as MG Windsor EV bagged more than 15K bookings on the first day.
By offering battery rental service, MG quoted significantly lower Ex-sh prices than typical EVs where battery was included in the package as part of the ownership. Mahindra took notice of this and is offering BaaS model with their newly launched Zeo commercial 4W pickup truck. Notably, Mahindra has not announced BaaS model on XUV400, their electric offering in PV segment.
As of now, Tata’s electric portfolio starts from Rs 7.99 lakh (Ex-sh) for Tiago EV, Rs 9.99 lakh (Ex-sh) for Punch EV, Rs 12.49 lakh (Ex-sh) for Nexon EV and Tigor EV and Rs 17.49 lakh (Ex-sh) for Curvv EV. We hope Tata reduces upfront Ex-sh prices by around 25% to 30% and quotes battery rental of Rs 2.5 to Rs 3.5 per km covered.
How will BaaS help?
If there is around 30% reduction in Ex-sh prices with BaaS as per the report, we can expect Tiago EV to start at around Rs 5.6 lakh (Ex-sh + Rental), Punch EV from Rs 7 lakh (Ex-sh + Rental), Tigor EV and Nexon EV from Rs 8.75 lakh (Ex-sh + Rental) and Curvv EV from Rs 12.25 lakh (Ex-sh + Rental).
If we take MG Windsor EV with BaaS and Tata Curvv EV without BaaS, there is a Rs 7.5 lakh difference in upfront Ex-sh price with base variants. With the Rs 7.5 lakh saved, a Windsor EV buyer can drive 2,14,285 km paying Rs 3.5 per km battery rental charge to MG. Considering that majority of EV buyers probably need more than 10 years to clock that mileage, the lower upfront cost facilitated by BaaS model is very impressive.
Source
Source: Electric - rushlane.com
