Summary：**EV owners feel the pinch as battery‑as‑a‑service costs surge** *India Business News – NEW DELHI

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**EV owners feel the pinch as battery‑as‑a‑service costs surge**
*India Business News – NEW DELHI*

**Introduction**
Electric vehicle buyers in India are discovering that the promise of lower upfront costs can come with a hidden sting. While schemes that separate the battery from the vehicle price make EVs appear more affordable, recent hikes in battery‑as‑a‑service (BaaS) fees are eroding those savings. A Tata Punch EV, for example, can be driven home for Rs 6.5 lakh under a financing plan that leaves the battery on a lease, compared with its outright price of Rs 9.7 lakh. Hyundai’s Creta Electric is seeing a similar trend, with its battery subscription rising sharply in the last quarter.

**Key Developments**
Automakers have rolled out BaaS models to tackle the high cost of lithium‑ion packs, allowing customers to pay a monthly fee instead of a large down‑payment. Tata Motors’ Punch EV now offers a battery lease at roughly Rs 2,200 per month, while Hyundai’s Creta Electric charges about Rs 2,800 for its power pack. Industry sources say the increase stems from rising raw‑material prices, especially lithium and cobalt, and from tighter global supply chains that have pushed up cell costs by nearly 15 % year‑on‑year. Consumers who initially opted for the lease to keep monthly outflows low are now seeing their bills creep up, narrowing the gap between leased and outright ownership.

**Industry Analysis**
The surge in BaaS rates highlights a structural tension in India’s EV push. On one hand, separating the battery reduces the barrier to entry for price‑sensitive buyers; on the other, it shifts risk to the consumer through variable fees that can fluctuate with commodity markets. Analysts note that while the upfront savings remain attractive—often 30‑40 % lower than the