Mahindra Last Mile Mobility Limited (MLMML), a key player in India’s electric commercial vehicle sector, has partnered with Bengaluru-based startup Vidyut to introduce Battery-as-a-Service (BaaS) for its electric vehicles (EVs). This collaboration, which covers both 4W and 3W commercial EVs, aims to make electric mobility more accessible by offering a pay-as-you-go battery rental model.
Under the new initiative, customers will pay a minimal rental fee starting at ₹2.50 per kilometer for battery usage. This service is designed to significantly reduce the upfront costs of electric vehicles, offering savings of up to 40% compared to traditional internal combustion engine (ICE) vehicles.
Battery Rental Model: A Shift in EV Financing
The BaaS model allows EV owners to rent the battery separately from the vehicle, lowering the initial cost of vehicle acquisition. This shift in financing aims to reduce the financial barriers to adopting electric vehicles, which have traditionally been more expensive due to the high cost of batteries. The rental program covers key models from Mahindra’s EV range, including the Mahindra ZEO (4W), Zor Grand, and Treo Plus (3W).
Vidyut, known for its focus on making EV ownership simpler and more flexible, provides an option for customers to either buy the battery outright at the end of the rental term or continue the rental arrangement. Vehicle owners can also choose to exit the program early by paying off the remaining value of the battery.
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Increased Accessibility to Electric Commercial Vehicles
The collaboration is seen as a step toward addressing the challenges that hinder the widespread adoption of EVs, especially in the commercial sector. While EVs offer long-term savings in terms of fuel and maintenance costs, the upfront cost has been a major obstacle for many businesses looking to transition to electric fleets. The introduction of BaaS is expected to ease this concern, offering businesses a more affordable path to owning electric commercial vehicles.
Expanding the EV Ecosystem
The partnership between Mahindra Last Mile Mobility and Vidyut also signals a broader trend in the Indian electric vehicle market, where startups and established manufacturers are collaborating to develop innovative financing solutions. Vidyut’s approach to batteries as a service, viewing them more as a consumable resource rather than an asset, challenges the traditional model of EV ownership and offers an alternative to customers who may not want the financial burden of owning a high-cost battery.
“By introducing the Battery-as-a-Service option through Vidyut, we are demonstrating our commitment to making electric mobility more accessible,” said Suman Mishra, Managing Director & CEO of Mahindra Last Mile Mobility Limited. “This partnership will contribute to the wider adoption of electric vehicles by enabling customers to reduce the initial acquisition costs.”
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