New Delhi. Tata Motors may soon reduce the price of its electric cars by up to 30%. According to a Money Control report, the company is planning to launch a 'Battery-as-a-Service' (BaaS) model on the lines of MG Motor India, in which the cost of the battery will be separated from the price of electric vehicles and It will be given on rent.
Electric vehicles can become cheaper by Rs 2-3.5 lakh
According to industry experts, this scheme of renting batteries separately can reduce the prices of Tata's electric vehicles by Rs 2 to 3.5 lakh. With this, customers will only pay the price of the vehicle and rent for the battery. Currently, Tata Motors' electric portfolio includes Tiago EV, Punch EV, Nexon EV and Curve EV.
Plan to increase market presence
Tata Motors hopes that with the battery-as-a-service model it will be able to further strengthen its hold in the market. By renting batteries, the ex-showroom price of electric vehicles will be reduced by 25% to 30%, which will motivate more and more customers to buy these vehicles.
According to the report, Tata Motors is currently planning this model on the drawing board. However, chances are strong that the company will launch it soon. Potential customers of Tata are ready to adopt this model as it gives them an economical option to drive.
MG Motor launched the first BAAS scheme
MG Motor India was the first in India to launch this battery rental program with its Windsor EV. Under this program, customers can drive by paying battery rent at the rate of Rs 3.50 per kilometer. Later MG also implemented this scheme in Comet EV and ZS EV.
What is the Battery-as-a-Service Program?
Battery-as-a-Service (BaaS) is a scheme in which the price of the battery is separate from the price of the vehicle. Customers pay fare based on battery usage. This means that the battery fare will be charged according to the distance covered by the vehicle. For this, customers will have to pay rent (EMI) every month, however, battery charging will have to be paid separately.
MG Motor is also offering many attractive facilities to its customers under the battery rental program. Services include lifetime warranty for the first owner, 60% buyback after three years and one year of free charging on eHUB through the MG app.
Tags: auto news, Tata Motors
FIRST PUBLISHED: October 19, 2024, 18:50 IST