Mahindra has extended its battery-as-a-service (BaaS) ownership programme to the XEV 9e and XEV 9S. Under this battery rental scheme, the prices of the XEV 9S start from Rs 12.65 lakh, and Rs 13.90 lakh for the XEV 9E. Additionally, customers will have to pay Rs 3.75 per km rental for the battery, calculated based on the starting battery EMI of Rs 6,975 and an average daily running of 60km. This reduces the upfront cost of these EVs by nearly Rs 8 lakh.
Mahindra has also announced to extend the BaaS programme to all variants of the BE 6 Sporteq. Until now, only the Pack One and Pack Two variants with the 59kWh battery were eligible for the BaaS scheme.
Is BaaS Really Beneficial?
BaaS is essentially a battery rental scheme that allows you to buy and own the vehicle without the battery by opting for a separate subscription/financial arrangement for the battery usage based on a monthly battery usage fee or EMI. It makes EVs look more affordable by lowering the upfront purchase price. However, it mainly benefits those buying the EV for short-term usage. Those who are looking for long-term usage might end up paying more money than the original battery cost.
Under the BaaS scheme, the battery ownership remains with the manufacturer or financing firm. That said, any risks associated with its performance, potential technology obsolescence or value remain with the financier, and buyers have the advantage of avoiding the high cost of the battery and the risk of its value depreciating over time.
In simple terms, a BaaS scheme can also offer greater peace of mind to buyers, as they do not have to worry about the battery’s long-term resale value or the possibility of newer battery technologies making the existing pack less desirable. However, the overall cost of ownership needs to be considered carefully.
Also Read: Mahindra XEV 9S vs MG Hector Tomahawk EV: Battle of 7-Seater SUVs
