HUGE EV Sales Surge! Ather & Hero MotoCorp's Secret Weapon: Cheaper Battery Plans Revealed!

The Battery-as-a-Service (BaaS) model is revolutionizing the electric vehicle market in India, with Ather Energy and Hero MotoCorp leading the charge. This innovative approach involves customers purchasing the electric scooter's chassis at a significantly reduced price and then subscribing to a monthly battery plan, effectively separating the most expensive component from the vehicle itself. This dramatically lowers the initial financial barrier for potential buyers.

Ather Energy introduced BaaS in August, cutting the starting price of its Rizta scooter to Rs 75,999 and its 450 Series to Rs 84,341. Customers can opt for battery subscriptions starting from Rs 1 per kilometre. Since implementing this model, Ather's monthly sales have surged from 13,332 units in April to 28,177 units in October.

Similarly, Hero MotoCorp's electric arm, Vida, launched its VX2 range with a BaaS option in July. This led to its monthly sales nearly tripling, from approximately 5,000 units in April to 15,968 units in October.

Impact This model has a significant positive impact on EV adoption by making electric vehicles more affordable upfront, thereby boosting sales volumes and market share for companies that adopt it. It can also make EVs more attractive for commercial fleet operators who rely on cost-effectiveness. Rating: 7/10.

Difficult Terms: Battery-as-a-Service (BaaS): A model where the battery of an electric vehicle is leased or subscribed to by the user, rather than being purchased outright with the vehicle. Chassis: The structural framework of a vehicle, to which the body and other components are attached. Upfront cost: The initial amount of money paid when purchasing something. Subscription: A service or product that is paid for on a recurring basis, typically monthly or annually. Assured buyback programme: A scheme offered by manufacturers or dealers that guarantees a certain resale value for the vehicle after a specified period. Commercial fleets: A group of vehicles owned and operated by a company for business purposes.