Buying an EV in India? Battery-as-a-Service minimum billing can inflate your running cost

Battery-as-a-Service, or BaaS, plans are making electric vehicles look far more affordable at the showroom in India. A Tata Punch EV priced at Rs 9.7 lakh can be driven home for Rs 6.5 lakh under a battery financing plan, Hyundai’s Creta Electric falls from Rs 18 lakh to Rs 11 lakh, and Maruti’s Grand Vitara EV becomes cheaper by almost Rs 8 lakh upfront.

But buyers who drive less than expected each month may find the savings shrink quickly. Several BaaS plans carry minimum monthly usage commitments that are billed regardless of actual driving. Citroen’s eC3X requires payment for at least 2,000 km every month, working out to a battery bill of about Rs 4,520 even if usage is lower, while Maruti Suzuki’s e Vitara has a disclosed minimum of 1,800 km per month, resulting in a minimum monthly battery charge of around Rs 7,200.

For buyers driving only 800 to 1,000 km a month, the effective battery cost per kilometre can rise sharply because unused kilometres are still billed. Many customers compare only the discounted ex-showroom price with the regular EV price, without accounting for the fact that BaaS creates two parallel payment obligations: a vehicle loan EMI and a separate battery payment.

Current BaaS plans across the market charge between about Rs 2.3 and Rs 5 per km depending on the model. A driver covering 15,000 km a year under a Rs 4-per-km plan would pay roughly Rs 60,000 annually, or about Rs 3 lakh over five years, before taxes, escalation clauses or financing charges are added.

Tata Motors describes BaaS as ‘primarily a financing tool, not a mobility service’ aimed at lowering the upfront acquisition cost of EVs, while noting that most customers still prefer to eventually own their battery outright. Hyundai did not comment on whether BaaS is offered for the Creta Electric, and Maruti did not respond to queries about the Grand Vitara EV.

JSW MG Motor India, which introduced BaaS with the Windsor EV in 2024, says the model has found genuine demand, with 12-15% of its overall EV sales now coming through BaaS across its portfolio, according to managing director Anurag Mehrotra.