Battery-as-a-Service (BaaS) means you buy the electric vehicle without the battery, so the upfront price drops, and then you pay a monthly subscription to use or lease the battery. The fee is sometimes charged per kilometre. It splits the EV’s two biggest costs and hands the battery’s degradation risk to the provider instead of you.
Key takeaways
- With BaaS you pay a lower sticker price because the battery, the most expensive part of an EV, isn’t included in the purchase.
- You then pay a monthly battery subscription, sometimes priced on a per-km basis, for as long as you own the car.
- The provider, not you, carries the risk of the battery degrading or failing over time.
- In India, MG offers BaaS plans on models like the Windsor EV and Comet EV.
- BaaS is related to but distinct from battery swapping , where you trade a drained pack for a charged one at a station.
- Over many years the subscription can add up, so the contract terms and resale impact matter.
What is Battery-as-a-Service?
It’s a way to buy an EV where the car and its battery are sold separately. You pay for the vehicle outright and lease the battery through a subscription. Because a lithium-ion pack can account for roughly a third or more of an EV’s cost, removing it from the purchase price makes the car noticeably cheaper to drive home.
How does BaaS lower the cost of buying an EV?
It cuts the upfront amount you finance or pay in cash. Instead of one large payment for the whole car, you pay a smaller price for the body and a steady monthly fee for the battery. That smaller upfront figure can make EV ownership reachable for buyers who’d otherwise stretch for a full-price model.
Which EVs in India offer BaaS?
MG is the main carmaker offering battery subscription plans in India, on models including the Windsor EV and the Comet EV. The structure lets buyers pick the car at a reduced price and then pay a separate, often per-km, battery charge.
BaaS versus battery swapping
People mix these up, but they’re different.
| BaaS (subscription) | Battery swapping | |
|---|---|---|
| What you do | Lease the same battery long-term | Swap a drained pack for a charged one |
| Where it’s common | Cars like MG Windsor, Comet | Two and three-wheelers |
| Main benefit | Lower car purchase price | No waiting to recharge |
| You own the battery? | No | No |
If you want the full picture on swapping, read our guide on how battery swapping works in India .
What are the downsides of BaaS?
The honest catches are about the long run. A monthly or per-km fee that looks small can total a large sum across several years of ownership. Resale can get complicated because the next buyer inherits the subscription, and the exact contract terms, like exit clauses and usage limits, decide whether the deal stays fair. The upside is that you skip the worry of paying to replace an aging pack yourself, which is a real cost over time. If battery health is your main concern, our explainer on battery degradation in electric vehicles is worth a read.
Frequently asked questions
Do I own the battery with BaaS?
No. You own the car, but the battery stays with the provider and you lease it. That’s the trade for the lower upfront price, and it’s why the provider absorbs the degradation risk.
Is BaaS cheaper than buying the battery outright?
It depends on how long you keep the car. The upfront saving is real, but the subscription is ongoing, so over many years the total can match or exceed buying the battery. Run the maths for your own usage before deciding.
Does BaaS use the same battery chemistry as other EVs?
Usually yes, lithium-ion packs. Newer chemistries like sodium-ion are emerging in India, but the BaaS model is about how you pay, not what’s inside the pack.
Can I switch from BaaS to owning the battery later?
That depends entirely on the contract. Some plans allow a buyout, others don’t, so check the terms before you sign.
Sources
Last updated: 23 June 2026.
