The main purpose of this strategy is to streamline ownership and remove the initial costs of batteries.
Piaggio Vehicles, part of the Piaggio Group, has launched an innovative ‘Battery Subscription’ model for its Apé Elektrik electric three-wheelers. This initiative introduces a starting price of Rs 2.59 lakh for its electric three-wheelers, compared to the Rs 4 lakh starting price for similar models with fixed batteries.
Diego Graffi, Chairman and Managing Director of Piaggio Vehicles, mentioned that their innovative Battery Subscription Model addresses concerns regarding battery life and maintenance while providing a more cost-effective ownership format. He believes this strategy will accelerate the adoption of electric vehicles despite lower subsidies.
The overarching goal of this initiative is to make ownership simpler and do away with the initial costs associated with batteries.
This move aligns with the Government of India’s Electric Mobility Promotion Scheme (EMPS), which has reduced subsidies by half to accelerate the nationwide adoption of electric vehicles (EVs).
In their statement, the company emphasized that this unique model addresses customer worries about battery maintenance, longevity, and resale value, ensuring their comfort and adaptability in a landscape with fewer subsidies.
Customers can now buy the Apé Elektrik for Rs 2.59 lakh and subscribe to a high-quality battery, provided by Piaggio, for a monthly fee through the dealership. This strategy aims to boost the adoption of electric three-wheelers, contributing to cleaner transportation solutions and lowering emissions. The chassis and powertrain of the vehicle are registered under the customer’s name, which supports hypothecated loans from non-banking financial companies (NBFCs).
Piaggio is offering a battery lease for up to 120,000 kilometres or eight years for cargo vehicles and 150,000 kilometres or eight years for passenger vehicles. After reaching the stipulated mileage, the monthly rental drops to zero. This subscription also covers battery replacements for the same rental amount once the initial term ends.
The battery subscription model is set to roll out in several major Indian cities including Gurgaon, Agra, and Bangalore, among others. The model is also available in cities like Mumbai, Chennai, and Hyderabad. Under this subscription model, no additional documentation is required from the customer. They can cancel the subscription or sell the vehicle anytime, similar to a traditional purchase.
Amit Sagar, Executive Vice President of CV Domestic Business at Piaggio Vehicles, stated that customers can now purchase an electric three-wheeler with an initial down payment of Rs 30,000 and monthly instalments of Rs 8,000, making it as affordable as buying a CNG three-wheeler.
