Battery as a Service: Building an electric future beyond ownership through the circular economy

When we talk about the future of electric mobility, the conversation often centres on batteries, and rightly so. According to NITI Aayog, electric two-wheeler penetration in India is projected to reach 60%-70% by 2030. This shift is being driven by multiple factors: rising fuel costs, government incentives, and growing awareness of sustainable alternatives. But the most critical factor is affordability, a pressing concern in a price-conscious market like India. And at the centre of that affordability challenge lies the battery. It is the single most valuable component in an EV, making up nearly 40% of the vehicle’s cost. It also carries the most uncertainty: What happens when it degrades? How does it get recycled? How do we make it more accessible?

In a market where consumers are highly sensitive to upfront costs, owning the battery outright can become a deterrent. This is where Battery as a Service (BaaS) comes in as a powerful alternative. By separating battery ownership from vehicle ownership, BaaS brings down the initial cost of an EV and creates a system where batteries can be used more efficiently, serviced better, and repurposed at the end of life. In short, it makes EVs more affordable, more sustainable, and more scalable.

Cost should not be a roadblock to EV adoption

The success of India’s EV transition depends on affordability. BaaS enables exactly that. It helps to remove the battery from the purchase equation, leading to a drop of up to 40% in the upfront cost of an EV. This is a big deal for both individual users and fleet operators, many of whom operate on thin margins. In the commercial two- and three-wheeler segments, where the total cost of ownership (TCO) is the key metric, BaaS aligns perfectly. Instead of investing in expensive battery packs, users pay a recurring fee for access, with predictable costs and zero maintenance worries. It is a shift from capital expenditure to operating expenditure, which frees up capital and improves financial flexibility, especially critical for gig workers, logistics firms, and small businesses. Battery swapping models, a core part of the BaaS ecosystem, can reduce TCO by up to 30% in certain use cases.

Building smarter, more sustainable urban mobility

India’s cities are under pressure. Congestion, air pollution, and fuel costs are making traditional transport models unsustainable. BaaS plays an important role in rethinking how urban mobility systems can be built: where EVs are not only cleaner, but also smarter to operate and easier to scale.

Commercial fleets that adopt the BaaS model can keep vehicles on the road longer, swap out batteries in minutes, and avoid downtime due to charging or battery degradation. This has direct benefits for urban logistics, public delivery infrastructure, and shared mobility models. More importantly, it sets the stage for interoperable networks, where battery stations become part of a city’s essential infrastructure, much like ATMs or petrol pumps today.

Enabling the circular economy

The conversation around EVs is not complete without sustainability. But sustainability is not just about zero emissions but about building a system where nothing goes to waste. BaaS allows batteries to be monitored continuously, used across multiple life cycles, and routed into second-life applications (like energy storage) before being responsibly recycled. This builds a closed-loop model where resources are reused, environmental impact is minimised, and waste is reduced. It is not just green but intelligent economics. From a national perspective, this reduces our dependence on raw material imports and encourages the development of battery refurbishment, diagnostics, and recycling ecosystems. All these are industries that will be key in India’s clean tech future.

Accelerating EV adoption

There is no question that India is on the cusp of a mobility transformation. But for this shift to be meaningful, it must go beyond early adopters and reach the mainstream. That means designing models that work for real users in real conditions. Take, for instance, a delivery executive who cannot afford a vehicle breakdown mid-shift, or a kirana store owner using an EV to fulfil local orders. For them, BaaS provides not just access to an EV but the assurance that they can stay mobile, productive, and financially viable without large capital outlays or complex maintenance needs.

BaaS is a market enabler. It aligns with how people want to consume: without long-term liabilities, with lower upfront risk, and with the flexibility to scale usage. It allows OEMs and energy providers to build recurring revenue models. And most importantly, it accelerates the transition to cleaner mobility without waiting for massive infrastructure upgrades or subsidy-led pushes.

The future of mobility will be shared, connected, electric and battery-agnostic. BaaS is not just a cost innovation but a mindset shift that unlocks accessibility, efficiency, and sustainability. It empowers end-users, including drivers, workers, and small business owners, to do more with less, to stay mobile without the burden of ownership, and to participate in the electric future on their terms. And that, ultimately, is what will make India’s EV story not just fast, but fair, inclusive, and future-ready.

By : Mr. Tushar Choudhary, Founder & CEO, Motovolt Mobility