Battery-as-a-Service (BaaS) model aims to make EVs more affordable and competitive with ICE models by separating the ownership of the battery from the ownership of the vehicle. Customers can pay a flexible monthly fee as low as ₹1 per km for battery usage.
14 Aug 2025 | 50874 Views | By Kiran Murali
Electric two-wheeler major Ather Energy on Thursday announced Battery-as-a-Service (BaaS) model for its two-wheelers while the automaker expanded its Assured Buyback programme to a larger customer base. Recently, Autocar Professional had earlier reported that the company is planning to launch the BaaS model. Ather Energy is the second major electric ...
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Electric two-wheeler major Ather Energy on Thursday announced Battery-as-a-Service (BaaS) model for its two-wheelers while the automaker expanded its Assured Buyback programme to a larger customer base. Recently, Autocar Professional had earlier reported that the company is planning to launch the BaaS model. Ather Energy is the second major electric two-wheeler after Hero MotoCorp to announce this new business model.
Through BaaS, Ather has made its scooters more affordable. Customers can now purchase the Ather Rizta starting at ₹75,999 and the 450 Series starting at ₹84,341 (both ex-showroom prices). Instead of a high upfront cost for the battery, customers pay a flexible monthly fee as low as ₹1 per kilometer for battery usage through financial partners that have teamed up with Ather, including banks and other non-banking financial corporations, the company said in a press release.
Battery-as-a-Service (BaaS) is a business model that aims to make electric vehicles more affordable and competitive with ICE models by separating the ownership of the battery from the ownership of the vehicle. The model allows consumers pay for battery usage on a subscription basis or per kilometre driven. This reduces the upfront cost of an electric vehicle as the battery accounts for 30-40% of the cost of an electric vehicle.
"As the EV segment continues to grow in the country, we see customers with different needs and challenges entering the segment. To unlock the segment’s true potential and accelerate growth, we've rolled out a slew of initiatives to cater to the different needs of our potential customers,” Ather Energy’s Chief Business Officer Ravneet Phokela said.
“With BaaS, ECW and Assured Buyback, we aim to address major barriers that exist for customers when purchasing a new EV scooter. As one of the leading players, we stay committed to making it easier for families to experience the benefits of EVs.”
With BaaS plan, customers are charged based on their usage. The cost of the battery is paid off over a period of 3 to 4 years, depending on the customer's preference. “This model features a usage-based payment system, with a cost of ₹1 per kilometer for a 48-month package that includes a minimum monthly usage of 1,000 kilometers,” the company said.
Ather Energy’s largest shareholder - Hero MotoCorp - has also recently launched the BaaS model for its new Vida VX2 electric scooter from July 1. In the passenger vehicle segment, JSW MG Motor has introduced this model for its Windsor EV.
Meanwhile, Ather Energy is also expanding its Assured Buyback program, which was successfully piloted with a small group of customers in February. This program guarantees a clear resale value for your scooter, offering buyers more confidence in their investment.
“The programme offers up to 60% of the scooter's value at the end of three years and up to 50% after four years, subject to the kilometers travelled, providing customers with clear visibility on their investment's future worth,” the company said.
The automaker is also introducing an Extended Comprehensive Warranty for all AtherStackTM Pro owners. This provides protection against manufacturing defects on the battery and 11 other crucial components, such as the motor, motor controller, dashboard, and charger. The warranty is valid for up to five years or 60,000 kilometers, whichever milestone is reached first, ensuring long-term peace of mind.
These new business initiatives come as Ather Energy gears up to launch a new EL platform and concept vehicles at an event towards the end of this month. The company will also be launching next-generation fast chargers and an upgraded version of its software stack, Ather Stack 7.0.automaker.