The BaaS option is ideal for those who can’t afford the full upfront cost but can comfortably manage monthly subscription payments
One of India’s leading electric two-wheeler brands, Ather Energy is working on a multi-pronged strategy to boost market share. Part of that plan includes the launch of a new affordable electric scooter. Ather has also confirmed that it will be introducing BaaS (Battery as a Service) option soon. Let’s check out the details and understand how it will benefit consumers.
Ather Confirms BaaS Prices
Ather Energy Chief Business Officer, Ravneet Phokela, has confirmed that the brand is working to introduce BaaS as an option. Based on internal studies, it was noted that consumer preferences were broadly divided into two categories. One group preferred the benefits that come with the traditional full ownership, whereas the other group found it challenging to bear the initial cost of acquisition. For this latter group, a subscription-based BaaS program may be more suitable.
Although a timeline for introduction of BaaS has not been provided, it could be announced in a week’s time, according to a recent report. Finer details of Ather’s BaaS program have also not been revealed. It is possible that Ather can charge a monthly subscription fees or require users to pay a specific amount based on per kilometre usage. Such monthly / daily costs will be easily manageable in comparison to paying the full price of the vehicle.
Another major benefit for consumers will be the significant reduction in upfront costs. With Ather’s BaaS program, the cost of the EV will be reduced by 30-40 percent. The brand will also benefit, as it can target a larger segment of buyers. Ather is currently ranked 4th in the list of bestselling electric two-wheelers in India. With the BaaS program, Ather will be aiming to boost sales and increase market share.
Early BaaS providers to benefit
While there are more than a dozen two-wheeler brands, the BaaS option is offered by only a few. Major player offering BaaS is Honda Activa e, but it does not reduce upfront ownership costs. Hero MotoCorp will be introducing BaaS options with its upcoming Vida VX2 electric scooter, scheduled for launch today, 1st July. Ather will be the next in the list of brands to offer the BaaS option.
Ather new affordable scooter, network expansion
To boost sales, Ather is also working on a new affordable ‘EL’ platform. This new EL platform, along with some concept vehicles built on the new platform, will be unveiled at the company’s 2025 Community Day. It is scheduled to be held in August. These new affordable Ather scooters can help generate larger sales volumes.
Pricing is expected to be under Rs 1 lakh, allowing improved competencies against rival offerings from brands like TVS, Bajaj and Ola Electric. Ather is also working to increase its sales and service network. The brand has set a target of 750 stores by the end of this year. As of now, Ather operates around 350 stores.
Ather will be targeting new cities in North India and also increase its footprint across metro cities. Another focus area is to launch the next-generation of fast chargers. These will allow faster charging, as compared to the current rate of 1.5 km/minute. At its 2025 Community Day, Ather will also unveil its upgraded software stack – Ather Stack 7.0.
Source: Bike - rushlane.com
