Battery as a Service (BaaS): The Key to Scaling India’s EV Consumption

Abstract

Explore how the Battery as a Service (BaaS) program can revolutionize India's EV market, addressing charging infrastructure challenges and lowering EV costs. Learn more about BaaS and EV technology at SGT University, one of the best private universities in Delhi NCR with a Centre of Excellence in Electric Vehicles.

Introduction

It is always assumed that bringing anything new, especially technological, to India will face many challenges. Of course, this assumption is not unfounded, as poverty, an inefficient state, and general consumer distrust mean that the country has always lagged in adopting new technologies.

But EVs seem to be bucking this trend in a way that was not thought possible. While everyone was aware of the acute frustration that Indian consumers have always had with fuel prices, the assumption was that the infrastructure limitations and high costs would make it impossible for popularity to surge beyond the upper echelons of India’s society.

However, with super affordable options in the 3-wheeler and even the 2-wheeler segments and the support of the government through schemes like the Electric Mobility Promotion Scheme 2024 (EMPS), Indians are seemingly embracing battery technology for their vehicles. Sales are growing, and if given the right environment, they might not stop.

But the main growing pains, if any, will come with respect to charging infrastructure. You see, it is easy for a suburban man in America to get a proper charger installed in his independent house and use it every night when he comes home in his Tesla. But in a country where wealth means living in a tall apartment or a builder's floor and where parking is a nearly unsolvable issue, ensuring that we can build enough charging stations to keep up with the upcoming demand will be a challenge.

Yes, you can build petrol station-like stops, but given that even the scooters require at least 3-4 hours to charge fully, can you imagine the lines that’ll be seen in a country like ours?

Battery as a Service (BaaS)

But free markets always find solutions for their most urgent problems. The recent introduction of the Battery as a Service (BaaS) program from MG Motors is seemingly the best direction we could take to scale the EV industry to its full potential, which is why even competitors are adopting this scheme.

The idea here is simple and can be directly inferred from the name itself. Under this mode, the battery is a separate accessory that is to be “rented” independently from the car. By signing up for this service, you agree to pay a certain fee for using a fully charged battery for as long as you can and then swapping it with another battery upon depletion.

Benefits of BaaS in India

This has two-fold benefits, especially within the Indian market. One, the infrastructural issues highlighted above are mitigated to a large extent. The service provider becomes the main contact point for recharging the car, allowing you to bring your vehicle home and simply park it.

Secondly, the cost of the car is now decoupled from the battery, which means that prices for EV vehicles will be slashed by 50% or more. Yes, long-term battery rental will even out the costs over a period, but for Indian consumers, for whom price is everything, the low cost of entry will only mean good things in terms of sales.

The rental fees for this program are estimated to be around Rs. 3.5-4 for every kilometre driven. Yes, these might be lower if you charge on your own, but still much lighter on the pocket. For example, at current rates, your diesel car will have to average 22-23 kmpl for it to match the cost of the battery. Petrol, well, has simply no chance.

Conclusion: A Cleaner, Greener Future?

So, is this it? Is this the key to a cleaner, greener India? Not too soon. While the concept is promising, we have yet to see it being implemented at scale, which is everything in a country like ours. But the backing of the state and the entry of multiple private players are all promising signs that this time, India will jump ahead to the future!

Learn more about BaaS and EV technology at SGT University

Whenever a new technology is introduced, you can either be the rubber or the road. If EV is the direction of the world, it would do young graduates a whole lot of good to go away from traditional forms of engineering and explore this whole new division. There are very few colleges in Delhi NCR that can give you a competent education in electric vehicles and battery technology. But they do exist.

For example, SGT University in Gurgaon has a special Centre of Excellence in Electric Vehicles, where its B.Tech and M.Tech mechanical engineering students get a thorough education in the implementation of EV technology from informed faculty and profound guests. The lab was built in collaboration with industry leader Electric One Mobility, which has given invaluable input and support to the university in ensuring that the next industry leaders develop in India itself.