Mahindra Last Mile Mobility and Vidyut collaborate to launch Battery-as-a-Service for electric vehicles

Electric commercial vehicle manufacturer Mahindra Last Mile Mobility Limited (MLMML) on Wednesday, December 11, announced a collaboration with Bengaluru-based EV startup Vidyut to launch an innovative Battery-as-a-Service (BaaS) financing program. According to the official release, this initiative aims to make electric vehicle (EV) ownership more affordable and accessible, particularly for commercial EVs such as the Mahindra ZEO (4W), Treo Plus and Zor Grand (3Ws).

Under this new program, customers can rent the battery for a minimal fee starting at Rs 2.50 per kilometer, significantly lowering the initial cost of purchasing an EV. This will reduce the upfront acquisition cost of electric vehicles by up to 40 per cent compared to traditional internal combustion engine (ICE) vehicles, said the company. 

Vidyut’s BaaS program allows customers to either buy out the battery after the financing term or continue the rental arrangement. Vehicle owners can also opt to discontinue the program at any time by paying the remaining worth of the battery, as per the official release.

Suman Mishra, Managing Director and CEO of MLMML, expressed excitement about the partnership, and said "By introducing the Battery-as-a-Service option through Vidyut, we are demonstrating our dedication to making electric mobility more accessible to everyone. This partnership will undoubtedly contribute to the increased adoption of electric vehicles by enabling customers to purchase last mile EVs with a reduced initial cost."
 
Xitij Kothi, Co-Founder of Vidyut, emphasised the company’s vision of treating batteries as fuel, rather than assets. He said "in partnership with Mahindra Last Mile Mobility Limited, we are excited to expand the innovation to 4W&3W cargo and 3W passenger vehicles too. Our goal is to make sustainable mobility not only affordable but also accessible, enabling more people to embrace EV ownership without the financial burden that often comes with it."