Mahindra Last Mile Mobility Limited, in collaboration with Vidyut, has announced a Battery-as-a-Service (BaaS) initiative for its 4W and 3W commercial electric vehicles (EVs).
The BaaS program offers a pay-as-you-go rental option starting at ₹2.50 per kilometer, which helps reduce the upfront cost of purchasing these EVs by up to 40%.
Vidyut, a Bengaluru-based full-stack EV startup, will provide customers with the option to rent the battery instead of purchasing it outright. This enables customers to reduce the initial cost of acquiring EVs like the Mahindra ZEO (4W), Zor Grand, and Treo Plus (3Ws).
Under the BaaS model, vehicle owners have the flexibility to continue with the rental program or buy out the battery at the end of the financing term.
Suman Mishra, Managing Director & CEO of Mahindra Last Mile Mobility Limited, stated, “Through the Battery-as-a-Service option, we aim to make electric mobility more accessible by lowering the upfront cost, thereby encouraging wider adoption of EVs in the commercial sector.”
Xitij Kothi, Co-Founder of Vidyut, emphasized, “Our approach focuses on treating batteries as a service, enabling customers to pay only for the battery while reducing the financial burden of EV ownership.”
Mahindra Last Mile Mobility Limited is India’s leading electric commercial vehicle manufacturer, offering a wide range of electric, petrol, CNG, and diesel last-mile mobility solutions, including the Treo, Zor Grand, and e-Alfa vehicles.
Battery-as-a-Service (BaaS) is a business model that allows electric vehicle (EV) owners to rent batteries separately from the vehicle, rather than purchasing them outright. This approach has gained traction as a way to lower upfront costs, enhance affordability, and promote wider EV adoption.
In a BaaS model, battery ownership is separated from the vehicle, enabling customers to pay for battery usage based on the number of kilometers they travel. This reduces the initial investment required for purchasing an EV, making it more accessible for commercial and individual users. The rental cost is typically structured as a pay-per-use fee, often based on distance traveled, helping reduce the financial burden that often comes with acquiring EVs.
BaaS models can improve operational efficiency for commercial fleets, particularly in sectors like logistics and delivery, where vehicles are used extensively. Companies offering BaaS also handle battery maintenance, replacement, and recycling, which ensures that batteries are properly managed and upgraded as needed.
This model has the potential to address concerns related to battery costs, lifecycle, and performance, providing customers with greater flexibility and reduced financial risks. It aligns with broader sustainability goals by encouraging EV adoption while optimizing resource usage and reducing the environmental impact associated with battery production and disposal.