Using EVs in Battery as a Service is more Marketing Value than Real use for Customers: Tata Motors

Tata Motors suggests that battery as a service is a more decent and a better marketing option than real use for customers. In Battery as a Service option, buyers do not have to pay full price of the car, instead they have to pay a fee for the use of the EV battery in the car.

Using EVs under this scheme helps to significantly reduce the one time buying cost of EV as they are paying only a portion of the fees of the battery’s operational cost.

During a select media round-table at the Bharat Mobility Auto Expo 2025, Shailesh Chandra, Managing Director of Tata Motors said, “It is a great financial strategy, as it is not separating battery from the car. Again it’s just an opinion and I am not saying that it is right or wrong, but I see BAAS as more of a marketing value than real use to a customer.

According to the data from Federation of Automobile Dealers Association (FADA), Tata sold 61,496 units of electric cars in 2024, registering a growth of 2.32% as compared to 60,100 units sold in 2023.

Among all companies, only MG Motors in India has adopted the BAAS model for EVs. The company’s model lineup includes cars like Comet, Windsor and ZS which are available as a BASS option.

He also added, “You can do your maths, and you will come to a conclusion that BAAS is significantly higher in cost than buying a full car, because in BAAS scheme you have to pay 18% GST as compared to the same battery which is sold in a car as a normal purchase option.

Chandra further expressed that, “I feel that BAAS will be costly and it is only there as an extra financial option for the consumer, to make out a difference between running cost and acquisition cost, and this extra option is highlighted as an extra financial model through BAAS.”

He added further, “According to my understanding the percentage of cars sold through BAAS options is not that much, but I don't know. My information is not accurate but as a customer, it is not giving that value for me,”

He even denied when asked about planning to introduce BAAS financial model by saying, “But as i said, there is marketing value to it, but at this moment we are not considering this option, but in future we don’t know.”