Similarly, the XEV 9e now starts at ₹13.90 lakh with battery financing at an effective usage cost of ₹3.75 per kilometre.

BaaS significantly lowers the upfront purchase cost of an EV while providing customers an option to pay a monthly rental fee for the EV.

Earlier in August, Mahindra & Mahindra introduced the BE 6 SPORTEQ, with prices starting at ₹11.45 lakh (ex-showroom) under its Battery-as-a-Service (BaaS) programme, with the battery rental priced at ₹3.75 per km.

“The programme has received an overwhelming response from customers across the country, validating the demand for ownership solutions that lower the barriers to EV adoption. Building on this feedback, Mahindra is now extending BaaS across all variants of the BE 6 SPORTEQ and introducing it to its flagship Electric Origin SUVs, the XEV 9S and the XEV 9e,” the company said.

In India, JSW MG Motor India was the first carmaker to begin BaaS with the MG Windsor. For JSW MG Motor, the BaaS scheme contributes 5-7% to total sales.