Tata Motors expands EV battery leasing scheme across entire lineup

Tata Motors has expanded its Battery-as-a-Service financing scheme to cover its entire electric vehicle lineup by adding the Nexon EV, Curvv EV, Sierra EV, and Harrier EV. The option was earlier limited to the smaller Tiago EV and Punch EV models. Chief Commercial Officer Vivek Srivatsa stated that buyers want more flexibility in how they finance electric vehicles.

How It Works

Under this system, the battery is paid for separately from the car through a dual-loan arrangement with partnered financiers, lowering the initial purchase cost. The monthly battery EMI depends on factors like battery size, down payment, and loan tenure, with no hidden battery down-payment costs. Customers can still buy Tata EVs with the battery included if they prefer the traditional purchase route. The BaaS pricing applies only to personal users and excludes road tax, insurance, TCS, and other government levies, while charging, maintenance, and repair costs also remain separate.

Price Cuts

The financing scheme cuts entry-trim starting prices by amounts ranging from Rs 2.30 lakh to Rs 7.30 lakh. The Tiago EV drops by Rs 2.30 lakh to a starting BaaS price of Rs 4.69 lakh, down from its regular price of Rs 6.99 lakh, based on an assumed daily use of 44 kilometres. The Punch EV drops by Rs 3.20 lakh to Rs 6.59 lakh from Rs 9.79 lakh. Among the newly added SUVs, the Nexon EV falls by Rs 5.35 lakh to Rs 8.99 lakh from Rs 14.34 lakh. The Curvv EV drops by Rs 6.20 lakh to Rs 10.99 lakh from Rs 17.19 lakh. The Sierra EV is reduced by Rs 6.80 lakh to Rs 11.99 lakh from Rs 18.79 lakh. The Harrier EV gets the largest reduction of Rs 7.30 lakh, bringing its starting price down to Rs 14.49 lakh from Rs 21.79 lakh. The usage cost calculations for these larger models are based on an assumed daily running of 60 kilometres.

Context

Electric vehicle adoption in India often faces hurdles due to high upfront purchase prices compared to conventional fuel cars. Separating the battery cost through a dual-loan model helps lower the initial financial barrier for buyers by treating the battery as a separate asset. This approach mimics leasing methods seen in global markets to make zero-emission vehicles more accessible to mainstream consumers.