If you have walked into an electric car showroom in India lately, you have probably seen a price that looks too good to be true. A Tata Nexon EV for under Rs 9 lakh. A Mahindra electric SUV for Rs 10 lakh less than its sticker price. A Hyundai Creta Electric at Rs 10.99 lakh. The small print usually says “BaaS” and “per km”.
BaaS stands for Battery-as-a-Service. Here is the short answer to the question most buyers are asking: BaaS is not a discount. It is a way of paying for the battery separately, usually through a second loan, so the car costs less on day one but you keep paying for the battery every month. It can be a smart choice if you need a low down payment and you drive a steady 50 to 80 km a day. It is usually a poor choice if you drive very little or can afford to buy the full car outright.
In this guide we explain how BaaS works in plain language, which electric cars in India offer it right now (October 2026), what it really costs over the years, and a simple checklist to decide if it suits you.
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Key takeaways
- BaaS splits the price of an electric car into two parts: the car (body, motor, interior) and the battery. You pay less upfront and pay for the battery over time.
- The “per km” figure is mostly a way of describing a monthly battery EMI. Many plans assume about 60 km a day, or roughly 1,800 km a month.
- Charging cost is not included. You still pay for electricity on top of the battery fee.
- In India, eight mass-market brands now offer BaaS: Tata, Mahindra, Maruti Suzuki, Hyundai, MG, Kia, Citroen and Toyota.
- Over a full loan tenure, you normally pay more for the battery than its cash price, because interest is built in.
- BaaS makes the most sense for regular daily commuters with a tight upfront budget. Low-mileage drivers and cash buyers usually save more by buying the battery with the car.
What is Battery-as-a-Service (BaaS)?
In any electric car, the battery is the single most expensive part. Mint reports that the battery makes up more than a third of an EV’s cost. That is why electric cars still cost more than petrol cars of the same size.
Battery as a service in India takes that battery cost out of the showroom price. You buy the car at the lower “BaaS price” and then pay for the battery separately. Carmakers usually advertise this second payment as a cost per kilometre, for example Rs 3.9 per km or Rs 4.4 per km.
Think of it a little like buying a house and taking a separate loan for the furniture. You move in with less money down, but you now have two payments to manage.
Is it really “pay as you drive”?
Mostly, no. This is the part that confuses many buyers. A Mint explainer on BaaS points out that the per-km rate is usually converted into a fixed monthly payment that assumes around 60 km of driving a day. You pay it like a normal EMI for a fixed number of years, whether or not you actually drove that much. In other words, it works like a dual-loan finance product: one loan for the car and one for the battery.
Some plans are different. MG’s own BaaS FAQ for the Windsor EV says certain finance partners have no minimum monthly running, while others set a minimum of 1,500 km a month. Tata describes its scheme as two separate loan accounts with their own tenures. So the details depend on the carmaker and the lender you pick. Always ask for the exact terms in writing.
Who owns the battery?
You own the car. The battery is financed or leased during the plan, and the vehicle is usually hypothecated (pledged) to the lender, just like a normal car loan. MG’s brochure also notes that if the battery is damaged by an outside cause that is the customer’s fault, the customer pays for it. What happens at the end of the tenure varies by plan, so check whether the battery becomes fully yours once the last payment is made.
Which electric cars offer BaaS in India right now?
Here is a snapshot of starting prices, based on Autocar India’s list of all BaaS EVs (updated 29 September 2026) and Tata’s latest announcement. These are entry-variant, ex-showroom figures. Prices change often, so confirm with your dealer before you book.
| Model | Battery | Full price | BaaS price | Battery fee |
|---|---|---|---|---|
| Tata Tiago EV | 19 kWh | Rs 6.99 lakh | Rs 4.69 lakh | Rs 2.6/km |
| MG Comet EV | 17.3 kWh | Rs 7.80 lakh | Rs 4.99 lakh | Rs 3.2/km |
| Tata Punch EV | 30 kWh | Rs 9.69 lakh | Rs 6.49 lakh | Rs 4,688/month (about Rs 2.6/km) |
| Citroen eC3X | Not listed | Rs 11.99 lakh | Rs 6.89 lakh | Rs 2.26/km (min. 2,000 km/month) |
| Kia Syros EV | 42 kWh | Rs 13.50 lakh | Rs 7.99 lakh | Rs 3.3/km |
| Tata Nexon EV | 45 kWh | Rs 14.34 lakh | Rs 8.99 lakh | Rs 4.4/km |
| MG Windsor EV | 38 kWh | Rs 14.70 lakh | Rs 9.99 lakh | About Rs 3.9 to 3.99/km |
| Hyundai Creta Electric | 42 kWh | Rs 18.03 lakh | Rs 10.99 lakh | Rs 3.9/km |
| Maruti e Vitara | 49 kWh | Rs 16.19 lakh | Rs 10.99 lakh | Rs 3.99/km |
| Tata Curvv EV | 55 kWh | Rs 17.19 lakh | Rs 10.99 lakh | Rs 5/km |
| Mahindra BE 6 | 59 kWh | Rs 19.45 lakh | Rs 11.45 lakh | Rs 3.75/km |
| Tata Sierra EV | 63 kWh | Rs 18.79 lakh | Rs 11.99 lakh | Rs 5.5/km |
| Mahindra XEV 9S | 59 kWh | Rs 20.65 lakh | Rs 12.65 lakh | Rs 3.75/km |
| Kia Carens Clavis EV | 42 kWh | Rs 18 lakh | Rs 12.88 lakh | Rs 3.3/km |
| MG ZS EV | 50.3 kWh | Rs 17.99 lakh | Rs 13 lakh | Rs 4.5/km |
| Mahindra XEV 9e | 59 kWh | Rs 21.90 lakh | Rs 13.90 lakh | Rs 3.75/km |
| MG Hector Tomahawk EV | 69.2 kWh | Rs 19.50 lakh | Rs 13.99 lakh | Rs 4.9/km |
| Tata Harrier EV | 65 kWh | Rs 21.79 lakh | Rs 14.49 lakh | Rs 5.9/km |
| Toyota Urban Cruiser Ebella (E3) | 61 kWh | Rs 23.60 lakh | Rs 15.25 lakh | Rs 4.99/km |
A few things stand out. Mahindra offers the biggest upfront cut, up to Rs 10 lakh on some variants. Citroen has the lowest per-km figure, but with a minimum commitment of 2,000 km a month. And the per-km fee does not always grow with battery size, because each brand uses different lenders, interest rates and tenures.
If you are looking at Tata specifically, you may also like our earlier piece on Tata’s electric car plans, which shows how quickly the brand’s EV line-up has grown.
Why BaaS is suddenly everywhere
MG started the trend in India with the Windsor EV in September 2024. For about a year and a half it was mostly an MG thing. Then Maruti Suzuki launched the e Vitara with BaaS in February 2026, and other carmakers followed quickly. By late September 2026, Tata had extended BaaS from the Tiago EV and Punch EV to its whole range, including the Nexon EV, Curvv EV, Sierra EV and Harrier EV.
This is happening while EV sales in India are at record highs. Dealer body FADA reported 36,108 electric passenger vehicles sold in September 2026, almost double the same month last year, with EVs now about 8.5% of all passenger vehicle sales. Carmakers want to pull in buyers who like the idea of an EV but get stuck on the price tag, and BaaS is a simple way to make the showroom number look friendlier.
Industry executives quoted by Mint say BaaS was meant more to bring people into showrooms than to drive sales, and that most buyers still choose to buy the car with the battery included. That tells you something: plenty of people look at BaaS, do the maths, and decide full ownership suits them better. You should do the same maths too.
What BaaS really costs: a worked example
Let’s use the Tata Punch EV, because Tata has shared clear numbers for it.
- Full price of the base Punch EV (30 kWh): Rs 9.69 lakh.
- BaaS price: Rs 6.49 lakh, so the battery part is Rs 3.2 lakh.
- Battery payment: Rs 4,688 a month, assuming 1,800 km a month, with the battery financed for up to 8 years.
Now multiply it out. Rs 4,688 a month for 96 months comes to about Rs 4.5 lakh. So over eight years you pay roughly Rs 1.3 lakh more than the battery’s cash price of Rs 3.2 lakh. By our own calculation, that works out to an interest rate of about 9% a year. That is in the same range as a typical car loan, so it is not a scam. It is simply finance.
A bigger car: the Nexon EV
For the Nexon EV, the battery fee is Rs 4.4 per km. At 1,800 km a month that is about Rs 7,920 a month. The upfront saving is Rs 5.35 lakh. If the battery loan ran for eight years, like the Punch example, you would pay about Rs 7.6 lakh in total for that Rs 5.35 lakh battery. That is our estimate, not Tata’s figure, because Tata has not published the Nexon’s tenure. Your real number depends on the lender, the tenure and your down payment.
Don’t forget electricity
The battery fee does not include charging. MG’s FAQ estimates charging at roughly Rs 1 per km. Charging at home is usually the cheapest option, while public fast chargers cost more. So your real running cost on BaaS is roughly the battery fee plus Rs 1 to 2 per km for electricity, depending on where you charge.
How this compares with petrol
Hyundai’s own BaaS guide notes that petrol and diesel cars often cost Rs 7 to Rs 10 per km in fuel alone. A BaaS EV at around Rs 4 per km for the battery plus about Rs 1 per km for home charging still comes in lower per km than that, before you count the EV’s lower servicing costs. That is the real appeal of BaaS: the monthly outgo can look close to what you already spend on petrol, while the down payment drops a lot.
Want to run your own numbers? Our step-by-step guide to the EV Cost & Savings Calculator shows how to compare running costs for your daily distance.
BaaS vs buying the full car: side-by-side
| Point | BaaS | Buy car with battery |
|---|---|---|
| Upfront price | Much lower, often Rs 2 lakh to Rs 10 lakh less | Full ex-showroom price |
| Monthly payments | Car EMI (if financed) plus battery EMI | One car EMI, or none if you pay cash |
| Total cost over the years | Usually higher, because of battery interest | Usually lower, especially for cash buyers |
| Low-mileage drivers | Can be costly if there is a minimum monthly km | No extra cost for driving less |
| High-mileage drivers | Some plans charge extra above a set km limit | No per-km cost at all |
| Selling the car early | Must clear outstanding battery and car dues first | Must clear car loan only |
| Paperwork | Two loans, more terms to read | Simpler |
| Battery warranty | Usually same as normal purchase (often 8 years/1.6 lakh km) | Same |
Who should choose BaaS?
BaaS can work well for you if:
- You drive a steady amount every day. Hyundai suggests it suits people who drive roughly 30 to 80 km a day. If most plans assume 60 km a day, you are basically paying for distance you actually use.
- Your down payment is the main hurdle. If you can manage a monthly payment but not a large lump sum, BaaS can bring an electric SUV within reach.
- You would take a loan anyway. Since most Indian buyers finance their cars, splitting the loan into car and battery parts may not change much, as long as the interest rates are fair.
- You want to keep cash free. Some small business owners prefer to keep money in the business rather than lock it into a car.
Who should skip BaaS?
You will probably save money by buying the full car if:
- You drive less than 1,000 km a month. If your plan has a minimum of 1,500 or 1,800 km a month, you pay for kilometres you never drive.
- You can pay cash or make a big down payment. Paying for the battery upfront avoids years of interest.
- You plan to sell the car within two or three years. You will need to settle the remaining battery dues before selling, and a buyer may ask questions about the battery plan.
- You drive very long distances. Some lenders charge extra above a monthly km cap, which can add up quickly for heavy users.
- You don’t like complicated paperwork. Two loans means two sets of terms, two due dates and more things to track.
Battery worries: does BaaS protect you?
A big reason people like BaaS is fear of the battery dying early and costing lakhs to replace. It is a fair worry, but the real-world data is reassuring.
Fleet data company Geotab studied more than 22,700 electric vehicles and found that batteries lose about 2.3% of their capacity a year on average. That means a typical battery still holds a little over 80% of its original capacity after eight years. Geotab estimates the average battery life at around 13 years or more. Separately, a large 2026 battery report from testing company Aviloo, shared by Australia’s NRMA, found most EVs keep around 90% or more of their capacity after 150,000 km.
Most carmakers in India also give an 8-year or 1,60,000 km battery warranty, whether you choose BaaS or not. Hyundai and Maruti both list this for their BaaS cars. So BaaS does not give you much extra battery protection over a normal purchase. The warranty does most of that work.
Simple habits that help any EV battery last longer
- Charge at home on a normal AC charger for daily use. Geotab found that cars which relied a lot on DC fast charging above 100 kW lost capacity up to twice as fast as those using slower charging.
- Park in the shade or a covered parking spot when you can. Hot climates add a small extra loss each year.
- For daily driving, many experts suggest keeping the battery roughly between 20% and 80%, and charging to 100% only before long trips. Do follow your car’s own manual on this.
- Avoid leaving the car sitting at 0% or 100% for days.
Recommended gear for home charging (US readers)
Slow, steady home charging is the easiest way to look after any EV battery. If you live in the US or Canada and drive a car with a J1772 port, these two well-reviewed Level 2 home chargers are popular choices. Note that they are built for North American cars and power outlets, so they are not meant for Indian EVs, which use Type 2/CCS2 plugs and usually come with a home charger from the carmaker.
- ChargePoint Home Flex Level 2 EV Charger (NEMA 14-50): a smart Wi-Fi charger with app scheduling, so you can charge overnight at cheaper off-peak rates.
- Grizzl-E Classic Level 2 40A EV Charger (NEMA 14-50): a simple, rugged metal-case charger with adjustable current, good for garages and outdoor walls.
If you are planning home charging, our guide on electric car charging stations covers the basics of how charging works.
Questions to ask the dealer before you sign
BaaS terms vary a lot between brands and lenders. Take this list with you to the showroom:
- Is there a minimum monthly km? What happens if I drive less?
- Is there a maximum monthly km? What is the charge per extra km?
- What is the interest rate on the battery loan, and how many years is the tenure?
- What is the total amount I will pay for the battery by the end of the plan?
- Will the battery fully belong to me after the last payment?
- Can I close the battery loan early? Is there a foreclosure charge?
- If I sell the car, how do I settle or transfer the battery plan?
- Does the BaaS price include insurance, road tax and registration? (Usually it does not.)
- Is the battery warranty the same as on a normal purchase?
- Who pays if the battery is damaged in an accident or flood?
If the salesperson cannot answer clearly, ask to speak directly with the finance partner. Get the answers in writing.
A quick 3-step way to decide
- Work out your real monthly distance. Check your current car’s odometer over a month. Divide by 30 to get your daily average.
- Total up both options. For BaaS, add the car EMI, the battery EMI and electricity for the years you plan to keep the car. For a full purchase, add the car EMI (or cash price) and electricity. Compare the two totals, not just the monthly amounts.
- Think about resale. If you will sell in a few years, include the cost of clearing any remaining battery dues.
If BaaS still looks cheaper or the lower down payment is worth the extra interest to you, go for it. If not, buy the full car and enjoy the simplicity.
Frequently asked questions
What does BaaS mean in electric cars?
BaaS means Battery-as-a-Service. You buy the electric car without the battery cost included and pay for the battery separately, usually through a monthly payment described as a per-km fee.
Is BaaS cheaper than buying the full electric car?
It is cheaper upfront, often by several lakh rupees. Over the full tenure, though, you usually pay more in total, because the battery payments include interest. In our Punch EV example, a Rs 3.2 lakh battery costs about Rs 4.5 lakh over eight years.
Does the per-km battery fee include charging?
No. Charging is extra. MG estimates charging at around Rs 1 per km. Home charging is cheaper than public fast charging.
What happens if I drive less than the plan assumes?
It depends on the lender. Some plans have no minimum, while others set a minimum such as 1,500 or 1,800 km a month. With a minimum, you pay that amount even if you drive less.
Can I sell a car bought on BaaS?
Yes. You will normally need to pay off any outstanding battery and car dues first, just like selling a car that still has a loan on it.
Which electric cars in India offer BaaS?
As of October 2026, BaaS is offered by Tata, Mahindra, Maruti Suzuki, Hyundai, MG, Kia, Citroen and Toyota, on models such as the Tata Nexon EV, Punch EV, MG Windsor EV, Hyundai Creta Electric, Maruti e Vitara and Mahindra XEV 9S.
Will my battery need replacing during the plan?
It is unlikely. Real-world studies show batteries lose around 2% to 3% of capacity a year on average, and most carmakers in India offer an 8-year or 1,60,000 km battery warranty.
Conclusion
BaaS has made electric cars in India look far more affordable, and for some buyers it really does open the door to an EV they could not otherwise manage. But it is a finance plan, not a price cut. The battery still has to be paid for, with interest, and charging costs come on top.
If you drive a steady 50 to 80 km a day and the down payment is your biggest hurdle, BaaS is worth a serious look. If you drive little, can pay more upfront, or plan to sell soon, buying the car with its battery is usually the better deal. Ask the right questions, compare the totals, and pick the option that fits your life, not just the showroom banner.
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