Piaggio offers first battery subscription model for electric three-wheelers

The broad plan behind this move is to simplify ownership and eliminate upfront battery costs.

Autocar Pro News Desk By Autocar Pro News Desk calendar 30 Apr 2024 Views icon10923 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Piaggio offers first battery subscription model for electric three-wheelers

Piaggio Vehicles, a subsidiary of the Piaggio Group, has outlined an ambitious plan to offer a ‘Battery Subscription' model for its Apé Elektrik electric three wheelers. The move will see prices of its electric three-wheelers begin at Rs 2.59 lakh as compared to fixed battery electric three-wheelers, which start around Rs 4 lakh.

Diego Graffi, Chairman and Managing Director of Piaggio Vehicles, commented on the announcement, saying, “The industry-first 'Battery Subscription Model' eliminates another barrier to electric vehicle (EV) adoption by addressing battery concerns while also providing a cost-effective ownership option. We are confident that this model will continue to drive EV growth even in the absence of subsidies.”

The broad plan behind this move is to simplify ownership and eliminate upfront battery costs.

The Government of India's new Electric Mobility Promotion Scheme (EMPS) has halved the subsidies as part of the plan to speed up the adoption of EVs throughout the country.

In a media statement, the company said that the unique solution removes customers’ apprehension about battery maintenance, lifespan, and resale, giving them peace of mind while continuing adaptability in the post-subsidy era.

Piaggio customers can now purchase the Apé Elektrik for Rs 2.59 lakh and subscribe to a high-quality Piaggio-approved battery pack for a monthly fee leased through the dealership.

The statement said, by addressing affordability and battery concerns, the subscription model can encourage broader adoption of electric three wheelers, leading to cleaner transportation and reduced emissions.

The vehicle chassis and powertrain are registered in the customer's name allowing for hypothecated loans through NBFCs.

Piaggio offers a battery lease term of 120,000 kilometres or eight years for cargo vehicles and 150,000 kilometres or eight years for passenger vehicles, with the monthly rent reduced to nil after reaching the designated mileage. The subscription also includes battery replacements for the same rental amount after the initial lease term.

Initial Availability and Expansion Plans

The battery subscription model will be launched in several key Indian cities. This includes Gurgaon, Agra, Warangal, Raipur, Mathura, Nizamabad, Nagpur, Lucknow, Kurnool, Bangalore Kanpur, Anantpur, Tumkuru, Allahabad, Vijayawada, Mysuru, Delhi, Guntur and Kolar. The vehicles under this model are also available in Noida, Vizag, Mumbai, Ghaziabad, Chennai, Ahmedabad, and Greater Noida, Hyderabad, Pune and Faridabad.

Customers are not required to provide any additional documentation under the subscription model, and they can cancel the programme or sell their vehicle at any time, just as they would with a regular purchase.

Amit Sagar, Executive Vice President, CV Domestic Business at Piaggio Vehicles, added that, “Customers can now own an electric three wheeler for a down payment of only Rs 30,000 and an EMI of Rs 8,000 per month, making it as easy to own as a CNG three wheeler.

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