Mahindra Last Mile Mobility Ltd (MLMML) has joined forces with Bangalore-based electric vehicle (EV) startup Vidyut to introduce an innovative Battery-as-a-Service (BaaS) financing program. This initiative is aimed at reducing the high costs traditionally associated with EV ownership, making sustainable mobility more accessible to a larger audience.
The collaboration, which focuses on Mahindra’s electric vehicle models such as the ZEO (4W), Zor Grand, and Treo Plus (3Ws), provides customers with a flexible, battery rental option. This groundbreaking approach significantly lowers the upfront costs of purchasing an EV, which has been a key barrier for many prospective buyers.
Cost-Effective EV Ownership with Battery Rental Under the BaaS program, EV users can rent batteries for as little as ₹2.50 per kilometer. This model eliminates the need for customers to bear the high initial purchase costs of EV batteries, reducing vehicle acquisition expenses by up to 40% compared to traditional internal combustion engine (ICE) vehicles.
This innovative program not only addresses cost concerns but also paves the way for greater adoption of electric vehicles in India, where affordability remains a critical factor in mobility choices.
Flexible Battery Ownership Options Customers participating in the BaaS program have the flexibility to either continue renting the battery or buy it outright after the financing term ends. For those opting to exit the program, a payment of the remaining battery value enables a smooth transition to full ownership. This user-centric approach empowers EV owners to tailor their ownership experience to their financial preferences, offering enhanced convenience and flexibility.
This partnership is undoubtedly expected contribute to the increased adoption of electric vehicles by enabling customers to purchase last-mile EVs with a reduced initial cost, as per company's point of view.
Vidyut’s Vision for Sustainable Mobility
Founded in 2021, Vidyut has been at the forefront of innovative solutions for the EV sector, aiming to make sustainable transportation more affordable and practical. Through this partnership, Vidyut has extended its BaaS program to both four-wheeler and three-wheeler vehicles, catering to cargo and passenger needs. This broad application enhances accessibility, making EV adoption feasible for a wider range of users.
A Major Step in India’s EV Revolution
The MLMML-Vidyut partnership marks a significant milestone in India’s growing EV market. Despite the environmental and cost-saving benefits of EVs, their high upfront costs—largely due to battery prices—have deterred widespread adoption. This initiative addresses that challenge head-on by offering a cost-effective and flexible ownership model.
By integrating Vidyut’s BaaS solution with Mahindra’s EV lineup, the partnership is poised to accelerate the transition to sustainable mobility, particularly among small businesses and individuals in the commercial sector. The pay-as-you-go model provides customers with greater control over their expenses, aligning with the broader push for environmentally friendly and economically viable transportation solutions.
This collaboration represents a transformative step toward making electric mobility a mainstream choice in India, breaking financial barriers and fostering a greener future.