Kia introduces battery-as-a-service with dual-loan financing for MPV buyers in India

Kia has introduced a Battery as a Service (BaaS) program for its MPV, offering prices from Rs. 3.3 per kilometer. The company aims to make electric vehicle ownership more accessible by implementing a dual-loan financing structure. This structure separates the loans for the chassis and the battery, which is different from other original equipment manufacturers' BaaS offerings.

Key Highlights

• Kia introduces Battery as a Service program for its MPV
• Dual-loan financing separates chassis and battery loans
• Battery charged at Rs 3.3 per kilometre with flexible tenure options
• Chassis-only prices start at Rs 12.84 lakh for standard version
• Program aims to lower upfront costs and increase EV adoption

BaaS Program Details

Under the new program, buyers can take out two separate loans. One loan covers the chassis, while the other is for the battery. The chassis loan functions like a standard vehicle loan. The battery, however, is paid for based on usage, at Rs. 3.3 per kilometer. This approach seeks to lower the upfront cost of the vehicle and provide more financial flexibility for buyers.

The financing for the chassis is available for up to 60 months, or five years. The battery loan has a tenure of up to 96 months, or eight years. For the standard pack, the minimum down payment is Rs. 51,520, with a monthly EMI of Rs. 26,650. The extended pack requires a down payment of Rs. 60,452 and an EMI of Rs. 33,099. The chassis-only price for the standard version is Rs. 12.84 lakh, while the extended version costs Rs. 15.94 lakh. The battery cost remains at Rs. 3.3 per kilometer, subject to terms and conditions.

Company Vision and Market Context

Kia India’s Chief Sales Officer, Sunhack Park, stated that the company’s approach to sustainability goes beyond launching electric vehicles. The goal is to create a complete ecosystem that makes electric vehicle adoption easier and more practical for customers. The BaaS model is designed to reduce upfront acquisition costs and offer greater financial flexibility. This initiative is part of Kia’s broader vision to support a smarter and more sustainable mobility future in India. The program is being launched with Kia’s first made-in-India electric vehicle.

The dual-loan structure and pay-per-use battery model set Kia’s BaaS program apart from others in the market. By separating the battery and chassis financing, Kia aims to address common barriers to electric vehicle adoption, such as high initial costs. The company expects this move to encourage more customers to consider electric vehicles as a viable option.

CarBike 360 Says

With the introduction of Battery-as-a-Service and dual-loan financing, Kia is taking a strategic step toward making electric mobility more accessible in India. By lowering upfront costs and offering flexible ownership options, the brand is addressing key EV adoption barriers. This move could reshape how buyers perceive electric MPVs, especially in a price-sensitive and rapidly evolving market.