Mahindra & Mahindra Expands BaaS Program

Starting prices for Electric Origin SUVs begin at Rs 11.45 Lakh with a battery usage cost of Rs 3.75 per kilometer.

Reader Takeaway: This program lowers upfront purchase barriers, potentially accelerating EV sales, though financing remains subject to partner approvals.

What just happened

Mahindra & Mahindra has officially expanded its 'Battery-as-a-Service' (BaaS) program to encompass its entire Electric Origin SUV portfolio. Previously limited to the BE 6 SPORTEQ, the service now covers the XEV 9S and XEV 9e models. The program allows customers to finance the vehicle and the battery through two separate loan structures, effectively decoupling the battery price from the vehicle's initial retail cost.

Why this matters

EV adoption in India remains sensitive to upfront vehicle costs. By lowering the entry barrier, M&M is creating a more attractive price point for mass-market consumers. This dual-financing model allows the company to compete more effectively against internal combustion engine (ICE) vehicles while maintaining the premium technology associated with their new electric SUV range.

Important Program Conditions

It is critical to note that BaaS is a financing mechanism rather than a pay-per-use subscription. Key conditions include:

• Finance approval is entirely at the discretion of the partner financial institutions.
• Costs for charging, maintenance, and insurance are excluded from the BaaS pricing.
• The stated usage cost of Rs 3.75/km is based on a daily run of 60 km and specific down-payment assumptions.
• Additional levies such as road tax, TCS, and insurance remain separate requirements for the consumer.

What to track next

Investors should closely monitor the adoption rate of these financing structures. The success of this program will likely be a primary driver for the company's electric vehicle volume growth and its ability to capture a larger share of the emerging EV market in the coming quarters.