Italian auto major Piaggio Group’s subsidiary, Piaggio Vehicles Pvt Ltd, on Tuesday announced the launch of a ‘Battery Subscription Model’ for its electric three-wheelers in 30 key cities.
Following the launch of the battery subscription model, customers can now purchase the company’s electric three-wheeler for Rs 2.59 lakh (ex-showroom) and subscribe to a Piaggio-approved battery pack for a monthly fee leased through the dealership, Piaggio Vehicles Pvt Ltd (PVPL) said.
Under this model, the vehicle’s cost is separated from the battery cost for a customer. Besides affordability, the new initiative addresses the issue of battery anxiety as well, which is a major pain point for an EV customer, and also issues like battery maintenance, lifespan or replacement, it said. PVPL also said it is taking full responsibility for battery health, offering peace of mind for long-term EV ownership.
“The industry-first ‘Battery Subscription Model’ removes another barrier to EV adoption by addressing battery concerns and offering a cost-effective ownership option. We are confident this model will sustain EV growth in a post-subsidy environment,” PVPL Chairman and MD Diego Graffi said. Under the subscription model, customers purchase the Ap Elektrik chassis directly from dealerships while the battery is provided to the customer at the dealership on a monthly rent.
The vehicle chassis and powertrain are registered in the customer’s name, allowing for loans with hypothecation on the chassis and powertrain through NBFCs, the company said.
The battery lease term is 120,000 kilometres or 8 years for cargo vehicles and 150,000 kilometres or eight years for passenger vehicles, the company said, adding the subscription includes battery replacements at the same rental amount after the initial lease term.
After reaching the designated mileage, the monthly rent reduces to nil, PVPL said. “Customer can now own an electric 3W at a down payment of Just Rs 30,000 and an EMI of Rs 8,000 per month which makes it as easy to own as compared to 3W CNG,” said Amit Sagar, Executive Vice President for CV domestic business at Piaggio Vehicles Pvt Ltd.
” We believe that the model will also continue the EV adoption in a post-subsidy world ensuring that customers and manufacturers get the best from the massive EV opportunity” he added.
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