Empowering India's EV Revolution: The Untapped Potential of Battery Leasing for Four-Wheelers
Battery packs typically account for 30-50 percent of an EV’s cost. For a personal or commercial EV buyer, this becomes a major hurdle. As a result, India has seen a rapid surge in innovative financing models that aim to bring down the high upfront costs of EVs.
June 27, 2025. By News Bureau
Battery packs typically account for 30-50 percent of an EV’s cost. For a personal or commercial EV buyer, this becomes a major hurdle. As a result, India has seen a rapid surge in innovative financing models that aim to bring down the high upfront costs of EVs. Among these, Battery-as-a-Service (BaaS), or battery leasing, is emerging as a powerful enabler for four-wheeler electrification.
Why Battery Leasing is a Game Changer
Battery leasing differentiates battery ownership from the vehicle itself. Instead of buying the battery outright, users can lease it on a monthly or usage-based subscription. This not only reduces the purchase price significantly but also removes concerns around battery degradation, resale value, and maintenance.
For instance, fleet operators frequently avoid EVs because of the operational and financial concerns related to battery performance, especially in the logistics, cab aggregation, and delivery services sectors. These operators have access to standardised, financeable battery packs that are maintained and improved throughout the course of their lifetimes when they lease. Leasing removes tech obsolescence anxiety and ensures peace of mind through predictive maintenance and remote health monitoring.
Some tech-first battery platforms are now offering 15-minute KYC-based financing, GPS-enabled tracking, and remote immobilisation features to ensure lease security. These models lower default rates and boost financing confidence, making EVs more accessible even in Tier II and III cities.
Making Batteries Smarter, Safer, and More Sustainable
Modern BaaS solutions are backed by AI-enabled platforms that provide real-time visibility into battery health, performance, and usage. This data-driven approach not only helps in proactive servicing but also allows companies to extend the battery’s lifecycle across first, second, and even third lives, serving EVs first, and then repurposed for stationary grid storage or renewable energy projects.
Such lifecycle management unlocks the true circular economy value of EV batteries. India discards over 1 million tonnes of battery waste annually, a number expected to grow exponentially by 2030. BaaS models offer a viable solution by keeping batteries in circulation longer, reducing environmental impact while maximising ROI for every battery cell deployed.
A recent report by NITI Aayog and Rocky Mountain Institute highlights that circular battery models could help reduce battery costs by up to 30 percent by 2030, making EVs even more affordable for the Indian middle class and small business owners.
Driving Financial Inclusion in EV Ownership
Perhaps the most transformative impact of battery leasing is in promoting financial inclusion. Small fleet owners, gig-economy drivers, and last-mile operators often do not qualify for traditional loans. By separating the battery from the vehicle cost, and offering low-EMI or pay-per-use subscriptions, leasing models open the doors of EV ownership to these underserved groups.
Some leading clean-tech platforms are also collaborating with NBFCs and national banks like Shriram Finance, RevFin, and ICICI Bank to offer easy battery loans. Insurance partnerships further secure these assets, building a full-stack EV ecosystem that supports sustainable and inclusive mobility growth. India’s EV leasing market is expected to grow at a CAGR of 73 percent by 2030, driven largely by BaaS solutions across both fleet and personal mobility segments.
Preparing for the Four-Wheeler Wave
While two- and three-wheeler battery swapping has already proven successful in markets like Kolkata and Patna, the real revolution lies ahead in the four-wheeler segment. As EV adoption expands into ride-hailing, logistics, and even intercity taxis, the need for a well-oiled, tech-enabled battery leasing infrastructure becomes paramount.
Emerging platforms are already piloting four-wheeler battery-as-a-service solutions, combining real-time diagnostics, service networks, second-life deployment, and financing into one cohesive offering. This seamless experience removes friction from ownership and drives higher adoption.
In fact, a study by Bain & Company reveals that India could see EVs account for 35-40 percent of new car sales by 2030, but achieving this depends heavily on solving affordability and battery longevity.
Powering the EV Economy, One Battery at a Time
India’s journey towards an electric future cannot rely on hardware innovation alone. It needs systems thinking, combining technology, finance, logistics, and sustainability to build inclusive and efficient battery networks.
Battery leasing models are more than financial tools. They represent a new way of thinking about energy assets: shared, circular, intelligent. India can empower thousands of new drivers, decentralise clean energy consumption nationwide, and enable broad four-wheeler electrification by adopting these models.
The future of EVs doesn’t stop at the wheel, it starts at the battery.
- Riki Biswas, Founder and CEO, Pointo
please contact: contact@energetica-india.net.
Neha Jain
Head – EV & Innovation Ecosystem
Neha Jain Highlights JSW MG Motor’s Push for Localised, Future-Ready EVs in India
Shekhar Singal
Managing Director
Plug, Play & Power Sustainably: Eastman MD Shekhar Singal on Democratising Solar Energy Access
Deepak Agarwal
Managing Director
CBG is an Attractive and Scalable Business Opportunity in India: GPSR ARYA MD Deepak Agarwal
Amit Banka
Founder & CEO
Balancing Biodiversity & RE is Key to Sustainable Future, Highlights WeNaturalists' Amit Banka
Julian Thomas
Portfolio Director
REI Expo 2025 to Showcase India’s Clean Energy Leadership on the Global Stage