Tata Motors offers Battery-as-a-Service on all electric cars, prices start at Rs 4.69 lakh

The battery is the single biggest cost in buying an electric car. That is why Tata Motors has rolled out a Battery-as-a-Service, or BaaS, scheme across its entire electric car lineup. Under the scheme, customers pay for the car and the battery separately, which brings down the car's initial ex-showroom price.

The scheme covers the Tiago EV, Punch EV, Nexon EV, Curvv EV, Sierra EV and the flagship Harrier EV. With the BaaS option, the Tiago EV starts at Rs 4.69 lakh, the Punch EV starts at Rs 6.59 lakh and the Nexon EV starts at Rs 8.99 lakh.

Similarly, the Curvv EV's BaaS price starts at Rs 10.99 lakh, the Sierra EV's at Rs 11.99 lakh and the Harrier EV's at Rs 14.49 lakh. While the car price looks lower in each of these models, buyers will have to pay a separate per-kilometre charge for using the battery. This charge ranges from Rs 2.6 to Rs 5.9 per kilometre depending on the model, and does not include charging, maintenance or repair costs.

In simple terms, the customer will need a separate financial agreement for the car and a separate payment for the battery. The actual monthly cost can vary depending on the down payment, the battery capacity and the loan tenure. It is therefore important to estimate daily driving distance before buying the car.

For those who drive short distances daily, the BaaS option can help lower the upfront cost. But customers who drive longer distances should work out the per-kilometre charge and the total cost over time before buying the car. Customers who prefer the older method of buying the car and battery together still have that option available as before.