Mahindra has expanded its model to all its new electric SUVs, lowering the upfront purchase price. Customers pay a base price for the car and a usage fee of ₹3.75 per kilometer for the battery.
40%
Battery Cost Contribution
⏳ Time Machine
How today’s news fits into the bigger picture
2021
FAME-II Subsidy Push
The Indian government increases subsidies for electric vehicles, driving early-stage adoption in public transport and two-wheelers.
2023
Battery Swapping Policy
NITI Aayog drafts a national battery swapping policy to standardize leasing and swapping standards for light electric vehicles.
Early 2026
First BaaS Two-Wheeler Tests
Electric two-wheeler startups launch battery leasing options, proving that pay-per-km models can work in the Indian market.
Today
Mahindra rolls out Battery-as-a-Service pricing across its entire electric SUV lineup, dropping entry barriers.
What happens next?
Rival automakers will likely introduce their own battery-leasing structures by early next year to stay competitive.
On Monday, Mahindra & Mahindra announced a major pricing disruption in the Indian electric vehicle (EV) market by expanding its Battery-as-a-Service (BaaS) program to its entire lineup of 'Electric Origin' SUVs. Under this model, customers can purchase a premium electric SUV, like the BE 6 SPORTEQ, for an upfront vehicle-only price of ₹11.45 lakh, which is remarkably close to the cost of standard petrol or diesel SUVs. The catch? The customer does not own the battery. Instead, they finance the battery separately and pay a running charge of ₹3.75 per kilometer based on their actual driving distance. Since the battery constitutes the single largest expense in an EV, stripping it out of the purchase price removes a massive barrier for cost-conscious Indian car buyers, while redefining how automotive technology is sold.
💭 If you're wondering…
Typically, BaaS contracts include a small minimum monthly mileage commitment (e.g., 1,000 kilometers). If you drive less than that, you still pay the minimum base fee, but any distance driven beyond the minimum is billed at the standard per-kilometer rate.
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