Mahindra-Vidyut a partnership to revolutionize electric mobility in India, Mahindra Last Mile Mobility Limited recently announced a strategic partnership with Bengaluru-based EV startup Vidyut on December 11, 2024. The partnership launched the country’s first-of-its-kind BaaS program, which promises to slash the financial barriers for switching over to electric vehicles in the commercial sector. It’s likely to change the game on EV ownership and drive Indian sustainable transportation forward.
Suman Mishra, Managing Director and CEO of MLMML said, “With the introduction of the Battery-as-a-Service option through Vidyut, we are showing our intent to make electric mobility available to all. This association will help in the higher adoption of electric vehicles as customers will now be able to buy last-mile EVs with a lesser upfront purchase cost.
Mahindra-Vidyut: Understanding the Battery-as-a-Service Model
The BaaS program has introduced a new way of owning electric vehicles, as it allows a customer to rent a battery and not buy one. With this model, the overall cost is reduced, and there are benefits of flexibility and predictability of cost, which turns out to be a game changer for SMEs and fleet operators.
Key Features of the BaaS Program
Pay-As-You-Go Pricing
- Customers will pay Rs 2.50 per kilometer for battery usage, a cost-effective structure that aligns expenses directly with operational needs. This model enhances cash flow management and offers companies improved detection and control of costs.
Overall Savings End
- The rentals of batteries save EVs an initial acquisition cost that can be up to 40% less expensive than comparable traditional ICE-based cars. This makes them affordable for SMEs and other cost-constrained sectors.
Flexible Ownership Options
- Customers can either take a unit at the end of their financing term or choose to continue renting it or drop out and pay the residual value of that battery. This will empower customers to make operational decisions independently without incurring losses or penalties.
Xitij Kothi, Co-founder of Vidyut, said about the future of EV batteries, “For us as a company, batteries are fuel. The question always has been, when the vehicle is not on the road, why pay for the battery? This is the reason we brought Battery-as-a-Service into the EV ecosystem. We believe that sustainable mobility must be not only affordable but also accessible.”
This program, under the Government of India’s National Electric Mobility Mission Plan (NEMMP), is also a vehicle towards promoting electric mobility while decreasing greenhouse emissions. With these reduced entry barriers, the Mahindra-Vidyut collaboration would be of paramount importance toward the sustainability agenda for India in addition to reducing the overall air quality in urban areas.
ELCTRIK Speaks
The Mahindra-Vidyut alliance is a critical step toward India’s path to becoming an all-electric country. The BaaS program addresses financial and operational challenges to pave the way for a cleaner, more efficient transportation system. It’s a business strategy with the heart of affordability and accessibility, a step toward a sustainable future. Collaboration of this sort will play a crucial role in the journey toward transformation in transportation as India strives to meet its ambitious EV targets and enhance the quality of life for millions.
