In an exciting development for the electric vehicle (EV) market, Mahindra Last Mile Mobility Limited (MLMML) has partnered with Vidyut, a Bengaluru-based electric vehicle startup, to launch a
In an exciting development for the electric vehicle (EV) market, Mahindra Last Mile Mobility Limited (MLMML) has partnered with Vidyut, a Bengaluru-based electric vehicle startup, to launch a Battery-as-a-Service (BaaS) financing model for its electric vehicles. This collaboration aims to make EV ownership more affordable and accessible, reducing the financial barrier to adopting clean and sustainable transportation.
The BaaS program will cover a range of Mahindra’s electric vehicles including the Mahindra ZEO (a 4-wheeler), as well as the Zor Grand and Treo Plus (both 3-wheelers). The move is designed to help potential EV owners save on upfront costs and further drive the adoption of electric mobility in India.
Battery-as-a-Service (BaaS) is an innovative financing model that allows EV owners to rent the battery for their vehicle instead of purchasing it outright. In this model, customers pay a small rental fee, which starts at Rs 2.50 per kilometer. This reduces the upfront cost of purchasing an electric vehicle by up to 40% compared to traditional internal combustion engine (ICE) vehicles.
Under the BaaS program, Mahindra’s EV customers will have the flexibility to either continue renting the battery after the initial financing term or buy it out at any time. This provides a convenient option for customers who may not want to commit to the full cost of the battery upfront. Additionally, if they wish, they can exit the program after paying the remaining battery cost.
The major advantage of the BaaS model is that it significantly reduces the initial purchase cost of an electric vehicle. In traditional EV purchases, the battery accounts for a significant portion of the vehicle’s price. By renting the battery, customers can bypass this heavy financial commitment, making the overall cost of owning an electric vehicle much more manageable.
For example, an electric 3-wheeler like the Zor Grand or Treo Plus, which is primarily used for commercial purposes, can be quite costly with a traditional payment structure. However, with BaaS, the battery rental model allows businesses and individual owners to adopt electric vehicles with a much lower financial burden, enhancing cash flow and reducing barriers to entry.
The introduction of Battery-as-a-Service can be a game-changer in the Indian EV landscape for several reasons:
Suman Mishra, the Managing Director & CEO of Mahindra Last Mile Mobility, expressed his excitement about the partnership, saying, “Introducing the Battery-as-a-Service option through Vidyut demonstrates our commitment to making electric mobility more accessible. This initiative will undoubtedly contribute to the adoption of electric vehicles, making them more affordable and reducing the financial burden for customers.”
On the other hand, Xitij Kothi, the Co-Founder of Vidyut, shared his vision for the future of EV ownership, saying, “We see batteries as fuel, not assets. Our aim is to make electric vehicle ownership convenient and affordable. By partnering with Mahindra, we are excited to extend this model to not only 3-wheelers but also 4-wheelers in the cargo and passenger sectors, enabling more people to embrace EVs without the financial strain.”
Vidyut’s approach focuses on making sustainable mobility affordable and accessible. With this partnership, the company aims to provide an innovative solution to tackle one of the biggest barriers to EV adoption: the high cost of batteries.
Founded in 2021, Vidyut is a full-stack electric vehicle startup based in Bengaluru, focused on offering innovative solutions for EV ownership. The company’s BaaS financing model is a key part of its mission to make electric vehicles more accessible and convenient for consumers, helping them shift to a greener and more sustainable way of traveling.
Vidyut has already made a significant impact in the commercial EV sector, focusing on fleet owners and businesses that require electric cargo and passenger vehicles. By introducing the BaaS model, Vidyut is redefining how businesses and individuals approach EV ownership.
As India pushes toward a more sustainable future, the need for electric vehicles is more pressing than ever. The partnership between Mahindra Last Mile Mobility and Vidyut is a major step forward in making electric mobility a viable alternative to traditional vehicles. The introduction of BaaS financing will help reduce the cost barrier and encourage more individuals and businesses to make the switch to electric vehicles.
With BaaS, battery rental, and flexible financing options, EV adoption in India is poised to grow rapidly. The launch of affordable and accessible EVs is expected to drive significant changes in the way people think about electric mobility, helping India move towards a greener, cleaner future.
With such innovations, the future of electric mobility in India looks bright, and this partnership is set to play a crucial role in shaping it.
