TVS has lost some ground… sold less compared to last month. Don’t forget Sept was the beginning of Festival Season and sales usually pick up starting Sept.

Bajaj and Ather were the biggest beneficiaries. Bajaj seems to have benefited by the GST reduction while Ather benefited due to its Battery as a Service (BaaS) Ownership Model.

Bajaj also offered huge discounts to Pulsar to revive its sales. This could reflect in the Revenue.

Ather has been making steady strides up the eScooter ladder with the BaaS Ownership Model. BaaS reduces the initial cost of EV ownership by more than 40% in 2Wheelers. After that they have to keep paying approx Rs 1/- per km… to the company … for the lifetime of the scooter.

None of Ather’s rivals (TVS, Bajaj Auto or Ola) offers BaaS Ownership Model.

Its a win-win situation because the initial cost-burden is reduce… and the company gets almost 3x more payment than the cost of a battery. eg: if the vehicle travels over 200,000kms (which most of the vehicle will do over their lifetime) they will have to pay Rs 200,000 over the price of the vehicle.

But the RISK of getting hit by a damaged-Battery is completely avoided.

At this rate Ather Energy could get ahead of both Bajaj Auto and TVS… with its nitro pack (BaaS) since neither TVS, Bajaj Auto or Ola Electric offers Battery As A Service (BaaS).

What is BaaS?

Battery-as-a-Service (BaaS) is an electric vehicle (EV) ownership model where a customer buys the vehicle but subscribes to a battery service… so in effect he doesnt have to pay the price of the battery at the time of purchasing the vehicle.

India has ALWAYS been very price sensitive market. So anything that can help reduce the price will attract more sales. BaaS reduces the initial cost of ownership by more than 40%.

Any EV manufacturer that does not provide BaaS model of ownership will have to suffer sales fall to those who provide BaaS Ownership Model.