An Indian carmaker has just made its entire range of ‘green’ models much more affordable. One such model is an SUV worth Rs. 14 lakh, now available for Rs. 9 lakh (ex-showroom). That’s a direct saving of Rs. 5.35 lakh – a substantial amount. And no, this is not a monthly or one-time discount scheme! Here are all the details.
Tata SUV Gets A Big Price Cut
The model we are talking about is none other than the Nexon EV. The price cut comes courtesy of Tata’s Battery-As-A-Subscription (BaaS) scheme. This is now applicable to Tata’s entire EV range. In this article, we will focus on how it will benefit potential Nexon EV customers.
The Nexon EV 45 kWh range starts at Rs. 14.34 lakh. With BaaS, the range starts at Rs. 8.99 lakh, saving Rs. 5.35 lakh.
Tata BaaS Scheme Explained
In simple terms, it is a dual-loan finance – the car and its battery are financed separately. The battery EMI depends on factors like its size/capacity, down payment and loan tenure. The scheme accounts only for the car & battery EMI and does not include running costs (charging, maintenance, repairs, etc.). Like a standard car loan, the scheme factors in only ex-showroom costs and does not cover road tax, logistics/handling charges, insurance, or TCS.
It’s worth noting that Tata’s BaaS scheme is not a blanket scheme. For now, it applies only to select battery packs of each model. For example, it applies only to the 65 kWh, 63 kWh, 55 kWh, 45 kWh, 30 kWh, and 19 kWh variants of the Harrier EV, Sierra EV, Curvv EV, Nexon EV, Punch EV, and Tiago EV, respectively. These models also have other battery pack options that aren’t covered under BaaS.
Is BaaS Cheaper Than Standard Purchase Mode?
It all depends on how flexible the brand’s BaaS scheme is. For example, for the 45 kWh Nexon EV, at Rs. 4.4/km and 60 km of daily use, the battery EMI would be roughly Rs. 7,920 per month (our calculation of the principal amount, assuming a 30-day month). Add your car’s EMI and running costs, and you’ll have a rough idea of what the car would cost you per month.
So, technically, BaaS is less of an outright savings scheme but more of a flexi-payment option, where a substantial chunk of your upfront car purchase cost gets absorbed into repayment over time. However, if your daily mileage is low, then BaaS makes much more sense.