Piaggio Vehicles, a subsidiary of the Piaggio Group, has unveiled an innovative strategy aimed at revolutionizing the electric vehicle (EV) market in India. Through its newly introduced ‘Battery Subscription’ model for the ApΓ© Elektrik electric three-wheelers, the company is set to significantly lower barriers to entry for potential EV buyers.
Under this pioneering approach, the prices of Piaggio’s electric three-wheelers will start at an enticing Rs 2.59 lakh, a notable reduction compared to the fixed battery electric models priced around Rs 4 lakh. Diego Graffi, Chairman and Managing Director of Piaggio Vehicles, hailed the move as an industry-first initiative designed to tackle key concerns surrounding EV adoption.
Graffi emphasized that the ‘Battery Subscription Model’ aims to alleviate customer apprehensions related to battery maintenance, lifespan, and resale value, thereby fostering confidence and ease of ownership. With the Government of India’s Electric Mobility Promotion Scheme (EMPS) halving subsidies, Piaggio’s innovative solution comes at a crucial time, providing a cost-effective alternative even in the absence of substantial government incentives.
By simplifying ownership and eliminating upfront battery costs, Piaggio aims to stimulate broader adoption of electric three-wheelers, thereby contributing to cleaner transportation and reduced emissions. The subscription model allows customers to purchase the ApΓ© Elektrik for a nominal upfront cost and subscribe to a Piaggio-approved battery pack for a monthly fee, leased through the dealership.
Crucially, Piaggio’s subscription model offers flexibility and convenience, with customers retaining ownership of the vehicle chassis and powertrain. This structure enables hypothecated loans through Non-Banking Financial Companies (NBFCs), further enhancing accessibility for buyers.
The battery lease terms are equally attractive, with options of either 120,000 kilometers or eight years for cargo vehicles, and 150,000 kilometers or eight years for passenger vehicles. Once the designated mileage is reached, the monthly rental reduces to nil, ensuring long-term affordability. Additionally, the subscription includes battery replacements for the same rental amount after the initial lease term, enhancing customer satisfaction and peace of mind.
Piaggio’s ambitious rollout of the battery subscription model will initially target key Indian cities, including Gurgaon, Agra, Warangal, Raipur, and others, before expanding to additional urban centers. Notably, customers are not burdened with additional documentation under the subscription model and retain the flexibility to cancel the program or sell their vehicle at any time.
Amit Sagar, Executive Vice President of CV Domestic Business at Piaggio Vehicles, highlighted the affordability of the model, with customers requiring only a modest down payment and manageable monthly installments. With a down payment of just Rs 30,000 and an EMI of Rs 8,000 per month, owning an electric three-wheeler becomes as accessible as purchasing a CNG alternative.
In conclusion, Piaggio’s innovative Battery Subscription Model marks a significant milestone in India’s electric vehicle landscape, promising to democratize access to EVs and accelerate the transition towards sustainable mobility. By addressing affordability and battery concerns head-on, Piaggio is poised to play a pivotal role in shaping the future of transportation in India.
