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Maruti Suzuki has announced plans to launch a buyback program and a Battery-as-a-Service (BaaS) subscription model for its first battery electric vehicle (BEV), the eVitara. The move aims to boost consumer confidence in electric vehicles (EVs) and address concerns over their higher upfront cost.
Partho Banerjee, Senior Executive Officer for Marketing and Sales at the company, noted that uncertainty around the resale value of EVs is a key concern for buyers. Unlike internal combustion engine (ICE) vehicles, where resale values are relatively predictable, EVs face uncertainty due to battery degradation, which accounts for around 40% of an EV’s total cost.
Maruti Suzuki believes the BaaS model can mitigate this concern. Under this model, the battery ownership is separated from the vehicle, and consumers pay for battery usage via a subscription or on a per-kilometer basis, lowering the vehicle’s initial cost. The company confirmed that the model will be introduced for the eVitara in India soon.
Other companies such as JSW MG Motor, Hero MotoCorp, and Ather Energy have already started offering buyback and BaaS schemes for their EVs. For instance, JSW MG Motor’s Windsor EV comes with a BaaS model where the battery is rented separately.
However, some automakers remain skeptical about the practical viability of BaaS, citing potential added complexity and cost for consumers. Despite this, Maruti Suzuki believes the BaaS model can address a key concern—battery depreciation affecting EV resale value—and help build stronger consumer confidence in electric vehicles.
