Tata Motors Passenger Vehicles has expanded its battery-as-a-Service (BaaS) offering across its entire electric vehicle portfolio, allowing customers to purchase EVs at lower upfront prices while paying separately for battery usage. According to reports from NDTV Profit, the BaaS programme, which was earlier available on select models, has now been extended to include the Nexon.ev, Curvv.ev, Sierra.ev and Harrier.ev. With this expansion, the offering covers Tata Motors' full electric vehicle range, from the Tiago.ev to the Harrier.ev. As reported by Tata Motors, the financing option now includes separate loan accounts for the vehicle and battery, providing customers with greater flexibility in how they finance their EV purchase.
Under the BaaS model, customers pay a lower upfront price for the vehicle and separately finance or pay for the battery based on usage. As reported by NDTV Profit, the Tiago.ev with a 19 kWh battery has a starting vehicle price of ₹4.69 lakh under the BaaS structure, compared with a starting price of ₹6.99 lakh for the vehicle with the battery included. The Punch.ev with a 30 kWh battery starts at ₹6.59 lakh under BaaS versus ₹9.79 lakh for the standard purchase option, with both models charging ₹2.6 per km for battery usage. According to Tata Motors, the difference between regular price and BaaS price ranges from ₹2.30 lakh for Tiago.ev to ₹7.30 lakh for Harrier.ev, representing a separation of costs for financing purposes rather than equivalent discounts.
For higher-capacity models, the BaaS pricing becomes more significant. According to NDTV Profit, the Nexon.ev with a 45 kWh battery is priced from ₹8.99 lakh under BaaS, compared with ₹14.34 lakh including the battery, with customers paying ₹4.4 per km for battery usage. The Curvv.ev with a 55 kWh battery has a starting BaaS price of ₹10.99 lakh, against ₹17.19 lakh with the battery included, charging ₹5 per km for battery usage. The Sierra.ev with a 63 kWh battery starts at ₹11.99 lakh under BaaS versus ₹18.79 lakh with the battery included, with a battery usage charge of ₹5.5 per km. Among the newly added models, the Harrier.ev with a 63 kWh battery starts at ₹14.49 lakh under BaaS versus ₹21.79 lakh with the battery included.
The key attraction of the BaaS model is the substantial reduction in initial purchase price. As reported by NDTV Profit, depending on the model, customers can reduce the upfront vehicle cost by several lakh rupees by separating the battery cost from the vehicle purchase. The Nexon.ev's upfront price falls from ₹14.34 lakh to ₹8.99 lakh under BaaS, while the Harrier.ev's vehicle price reduces from ₹21.79 lakh to ₹14.49 lakh. However, customers using the BaaS option will incur a separate battery usage charge linked to the distance travelled. According to Tata Motors, the company has partnered with multiple financiers to provide buyers with choice of financing arrangements, with battery EMI depending on factors including battery size, down payment and loan tenure. The offer is applicable to personal users only and excludes road tax, insurance, TCS and other government statutory levies.
The expansion responds to growing competition in EV financing, with Mahindra recently introducing BaaS options for the XEV 9S and XEV 9e, while MG's Hector Tomahawk EV offers introductory BaaS pricing from ₹13.99 lakh plus battery rental of ₹4.90 per km. As reported by Tata Motors, Vivek Srivatsa, Chief Commercial Officer, stated that customers increasingly want flexibility in how they finance an EV, alongside a wider choice of vehicles. The expansion to larger SUVs brings their advertised upfront vehicle prices closer to lower price brackets, helping Tata respond to competitive pressures. The company emphasizes that customers choosing BaaS will receive the same vehicle technology, product experience and ownership support, with no hidden battery down-payment cost and transparency around financing arrangements.
