Ather to Launch BaaS Model Soon, EV Prices to Drop

Bengaluru-based electric two-wheeler maker Ather Energy is preparing to roll out a new model that could make EVs more affordable for Indian consumers. The company is set to launch a Battery-as-a-Service (BaaS) model soon.

Under this model, customers can rent the battery instead of buying it. This means users will purchase only the scooter, while paying for battery usage either monthly or per kilometer. Since the battery accounts for 30-40% of an EV's cost, this move will significantly reduce the initial purchase price.

Ather’s Chief Business Officer Ravneet Phokela said that while many people are interested in EVs, the high upfront cost remains a major hurdle. The BaaS model, he believes, will help bridge that gap. The company is expected to launch the service within a week.

Interestingly, Ather’s largest investor Hero MotoCorp is also launching a BaaS model for its Vida VX2 electric scooter starting July 1.

Ather is simultaneously gearing up to launch a new affordable scooter platform (EL), unveil next-gen fast chargers, and expand its retail network from 350 to 750 outlets by the end of the year. The company plans to showcase its new products and technologies at an event in August.

Currently, the EV two-wheeler market is led by Ola Electric with around 30% market share, followed by TVS, Bajaj, and then Ather. While Ather has so far focused on premium electric scooters, it now aims to reach a broader customer base by entering the affordable segment.

With the BaaS model, a new budget-friendly product lineup, and expanded presence, Ather Energy is positioning itself to become a more aggressive competitor in the fast-growing electric two-wheeler space in India.