For many first-time buyers, the upfront cost is the biggest hurdle when buying a new car. A car priced at around Rs. 7 lakh can still feel out of reach once you add the down payment, insurance, and registration. A scheme now available in the market brings the starting price of one such car down by Rs. 2.3 lakh, which could make a real difference to your budget.
This is not a discount or a limited-period offer, though. The lower price comes from a different way of buying the car, and it comes with a few conditions. Here is how it works and what you need to know before choosing it.
Tata Tiago EV BaaS: Now Starts At Rs 4.69 Lakh
The car in question is the Tata Tiago EV, India’s most affordable electric car. Tata’s Battery-as-a-Subscription (BaaS) scheme is now available, lowering the upfront price.
The Tiago EV 19 kWh (Smart variant) is priced from Rs. 6.99 lakh (ex-showroom). With BaaS, it starts at Rs. 4.69 lakh, saving Rs. 2.30 lakh upfront. In return, the buyer pays a battery rent of Rs. 2.60 per km.
Tata BaaS Scheme Explained
With BaaS, you don’t pay for the battery when you buy the car; you finance the car separately, and you finance or rent the battery separately. That is why the showroom price drops by Rs. 2.30 lakh on day one.
You then pay for the battery through a monthly amount linked to how much you drive. For the Tiago EV, this is Rs. 2.6 for every kilometre. In practice, the final figure also depends on the pack’s capacity, how much you put down and how long you take to repay.
The prices only cover the ex-showroom cost of the car and the battery. Road tax, insurance, TCS, and handling charges are extra, as are everyday costs like charging, servicing, and repairs. The scheme is also limited in scope. Tata offers it only on one battery option per model, and for the Tiago EV, that is the 19 kWh pack. If you want the other battery option, you will have to buy the car the regular way.