The electric range
Buying an electric vehicle just got a lot more straightforward. The Punch.ev now comes with a BaaS- Battery-as-a-Service financing option that separates the cost of the battery from the rest of the vehicle, bringing down monthly EMIs. If you've been on the fence about making the switch to EVs, understanding what is BaaS and how it works might be the thing that changes your mind. Here's everything you need to know.
The biggest barrier to EV adoption has always been the upfront cost, and the battery accounts for a large portion of the high upfront cost. What is BaaS if not a direct answer to this problem? Battery-as-a-Service is an additional financing option with lower upfront cost to own an electric vehicle, and it's now available on Punch.ev.
The logic is simple. By separating the battery loan and extending its repayment period to up to 8 years, which is longer than the standard chassis loan tenure of 5 years, the monthly EMI on the battery comes down. The combined EMI of both loans ends up being comparable to, or competitive with, the EMI of a conventional petrol or diesel vehicle in the same segment.
Here's an example of the tentative EMI breakdown across all Punch.ev variants under the BaaS structure, assuming the chassis tenure is 5 years, and the battery tenure is 8 years:
| Variant | Battery Kwh | Battery Cost (INR) [A] | Vehicle/Chassis Cost (INR) [B] | Ex Show Room Price (INR) [A+B] |
|---|---|---|---|---|
| Punch EV 2.0 Smart 30 | 30 | 3,20,000 | 6,49,000 | 9,69,000 |
| Punch EV 2.0 Smart+ 30 | 30 | 3,20,000 | 7,09,000 | 10,29,000 |
| Punch EV 2.0 Smart+ 40 | 40 | 3,70,000 | 7,29,000 | 10,99,000 |
| Punch EV 2.0 Adventure 40 | 40 | 3,70,000 | 8,04,000 | 11,74,000 |
| Punch EV 2.0 Empowered 40 | 40 | 3,70,000 | 8,79,000 | 12,49,000 |
| Punch EV 2.0 Empowered+ S 40 | 40 | 3,70,000 | 9,09,000 | 12,79,000 |
*EMI amounts may vary based on the loan amount and tenure combination.
The base variant, Smart 30, has a total vehicle ESP of ₹9,69,000, split into a chassis price of ₹6,49,000 and a battery price of ₹3,20,000.
One of the most compelling ways to look at BaaS in practice is through the lens of running cost. For the Smart 30 variant, the battery EMI works out to ₹4,688 per month. Assuming a monthly running of 1,800 km- a reasonable estimate for most drivers, the battery cost comes to just ₹2.60 per km. It reframes the EV conversation from total ownership cost to cost per kilometre, which is where EVs genuinely shine.
Under this structure, the vehicle cost is split into two separate loans- one for the chassis and one for the battery. This is essentially BaaS in practice: dividing ownership cost into more manageable parts instead of financing everything together.
The chassis loan follows a standard tenure, while the battery loan is spread over a longer period, helping reduce the monthly burden. Each loan has its own EMI, but both are aligned to be paid together, making the process simple to manage. This dual-loan setup reflects the meaning of BaaS- treating the battery as a separate expense rather than a one-time cost, making Punch.ev ownership more flexible and financially accessible.
Bajaj Finance: Bajaj Finance offers 100% LTV on both the battery and chassis, with an interest rate of 9.0%. The battery loan runs for up to 8 years, and the chassis loan runs for up to 5 years.
Kotak Mahindra Prime: Kotak Mahindra Prime offers 100% LTV on the battery and 90% LTV on the chassis, at an interest rate of 9.25%. Repayment tenures are the same as Bajaj Finance at up to 8 years for the battery and up to 5 years for the chassis, but you can work out other durations with the bank as well.
Lower Monthly EMI: By spreading the battery cost over a longer tenure, the BaaS meaning becomes clear- lower monthly outgo on the most expensive component.
Competitive Total Cost: The combined EMI stays comparable, making EV ownership more practical.
100% Battery Financing: With 100% LTV on the battery, there’s no upfront payment required for this component.
Flexible Loan Foreclosure: The customer can foreclose both the loans independently by paying standard foreclosure charges. No foreclosure charges will be applied on the battery loan after 5years.
BaaS isn't just a financing product; it's an accessibility tool. By spreading the battery cost over a longer period and reducing monthly outgo, it brings the Punch.ev within reach of buyers who might have found the full vehicle loan EMI too steep.
The Punch.ev BaaS model makes EV ownership more accessible by reducing upfront costs and lowering monthly EMIs. With flexible financing and competitive running costs, it offers a smarter, more manageable way to switch to electric.
If a lower monthly outgo and the flexibility of separating battery cost from chassis cost appeal to you, BaaS is worth serious consideration.
The vehicle cost is split into two separate loans- one for the battery and one for the chassis, each with its own tenure and EMI, financed by an authorised BaaS partner.
The starting chassis price is ₹6,49,000 for the Smart 30 variant, with a battery price of ₹3,20,000 financed separately.
Based on a monthly running of 1,800 km, the battery EMI for the Smart 30 works out to ₹2.60 per km.
Usually, the battery loan runs for up to 8 years; the chassis loan runs for up to 5 years, but there are also other tenure combinations that you can avail with the bank.
Yes, both loans carry separate EMIs, though both are debited on the same day each month.
No. There are no additional fees or charges for availing the BaaS offer. All applicable charges follow the standard new car finance process.
Battery as a service is a flexible financing option to enable you to Buy an EV by splitting the battery and the chassis cost for lower upfront outflow and EMI being spread over a longer period due to higher tenure of the Battery cost. The battery constitutes anywhere between 25% - 35% of the total cost of the EV. Thus, BaaS intends to provide you a sperate Battery loan which is provided for a higher tenure, reducing your EMI towards the Battery loan. This effectively reduces the overall EMI (combined of Bodyshell Loan & Battery Loan).
Battery price is decided by TPEM and the battery loan amount will be as per the price mentioned by TPEM for the battery.
No. The battery or any other warranties pertaining to the car are governed by the TPEM and Financier has no role to play in fulfilment of same.
No. You cannot opt for only one the battery / shell on loan under the BaaS program.
No. The EMI for battery loan will be fixed basis rate and tenor of the loan. You can calculate the monthly running cost basis usage(mileage) and loan EMI.
The Rate of Interest for battery and shell loans would be same. The rate would be as per the eligibility used in New Car Finance business basis CIBIL Score and registration type.
You can sell the EV prior to closure of chassis and or battery loan tenure by simply foreclosing both the loans (repay the foreclosure amount against the Bodyshell Loan & Battery Loan) > avail the NOC from Financier > remove the hypothecation of Financier from the respective RTO & sell the EV. (This process is similar to selling an ICE vehicle availed against a Car Loan).
For battery replacement, you simply need to request for NOC specific to Battery Replacement from Financier and once the battery is replaced, inform the new battery number to Financier for updation in its system.
You will receive an NDC letter from Financier as a proof for the closure of the Bodyshell loan.
Yes, both the loans can be foreclosed independently by paying standard foreclosure charges. No foreclosure charges will be applied on the battery loan after 5 years.
