Mahindra has expanded the Battery-as-a-Service (BaaS) feature for its electric Origin SUV range. Earlier this option was available only with BE 6 SPORTEQ, but now the company has extended it to XEV 9S and XEV 9e as well. With the help of this facility, customers will be able to get separate financing for the battery while purchasing an electric SUV instead of paying the full cost at once.
The starting ex-showroom price of these electric SUVs with BaaS option starts at Rs 11.45 lakh. The monthly EMI of the battery will start from Rs 6,975. The company claims that under this model the initial purchase cost of the electric SUV is reduced.
BaaS option will be available on all three SUVs
Three electric SUVs have been included in the BaaS model from Mahindra. The starting price of BE 6 SPORTEQ has been kept at Rs 11.45 lakh, the starting price of XEV 9S has been kept at Rs 12.65 lakh and the starting price of XEV 9e has been kept at Rs 13.90 lakh.
This financing option will be available for all variants of these three SUVs. In the BaaS model, the financing of the vehicle and the battery are separate. Due to this, the customer does not need to spend the entire amount at once while buying a car and the initial financial burden is reduced.
Battery EMI will start from Rs 6,975
According to the company, the monthly EMI of the battery starts from Rs 6,975. According to Mahindra's estimates, the running cost of the electric SUV in this model can be around Rs 3.75 per kilometer.
However, the company has clarified that BaaS is not a pay-per-use system, but it is a different type of financing product. The estimate of Rs 3.75 per kilometer has been arrived at based on conditions like driving around 60 kilometers per day and fixed down payment.
Battery EMI will depend on many things
Customer's actual battery EMI may vary depending on several factors. This includes factors like battery capacity, down payment and loan tenure.
Additionally, the starting price quoted does not include charger, road tax, insurance and other government taxes. At present, this BaaS option of Mahindra is being made available only to customers purchasing the vehicle for personal use.
Competition in electric SUV segment will increase due to BaaS
This move by Mahindra has come at a time when competition in the electric SUV segment in India is increasing rapidly. MG already offers Battery-as-a-Service models with many of its electric cars.
In such a situation, Mahindra offering XEV 9S with BaaS at a starting price of Rs 12.65 lakh can become an attractive option for those customers who are planning to buy a large electric SUV in a low starting budget. The expansion of the BaaS model is expected to make the competition for purchasing and financing electric cars more interesting in the times to come.