Key Points
Today, while this seems like an innovative idea to overcome some of the challenges being faced by electric car makers and buyersespecially given the success of this model in the electric two-wheeler space (E2W)industry analysts are still unsure of how it will pan out for four-wheelers...
However, in 2019, Renault discontinued the battery subscription model after observing a notable improvement in the resale value of EVs, making their TCO competitive with that of internal combustion engine vehicles...
With the commercialisation of battery rental service, Hyundai Motor expects that customers will be able to purchase BEVs (Battery Electric Vehicles) at lower cost because they will only pay for the vehicle excluding battery cost..
For BaaS in 4Ws, Sharma added that this model may also need to factor in things like how the resale value of the vehicle evolves, especially if the owner has to pay the balance subscription amount before the transfer of ownership, and how a buyer would compare the same as against buying a new vehicle with subscription..
According to the FAQs on the BaaS model forMGWindsor on thecompanyswebsite, if a customer wants to sell the car before the tenure, they can do so by repaying the outstanding amount and by paying the balance amount for both vehicle and battery...
