Hero MotoCorp has launched its new electric scooter Vida VX2, which has come up with a special Battery-AS-A-Service (BAAS) model. The purpose of this model is to bring electric two-wheelers to be cheaper and access to common people. Baas i.e. Battery-AS-A-Service is a way in which the customer does not have to pay the battery money while buying a scooter. Instead, they pay the battery fare every kilometer. This reduces the initial price of the scooter significantly.
Vida VX2 comes in two variants. You can buy it for only ₹ 59,490 with BAAS model, but with battery it will come for ₹ 99,490. The difference of about ₹ 40,000 can be beneficial for customers who want to buy EV for the first time or travel daily.
Hero's strategy in the market
Market expert says that this step will help the hero to advance in the EV market. This BAAS model of Hero is inspired by MG Motors. After adopting the BAAS model, the EV market share of MG was increased from 16.5% to 41% in just three months. Apart from this, Hero has built more than 3,600 charging stations and 500+ service centers across India, which will provide better service to customers.
Challenges of baas
Although the BAAS model may be popular initially, it will not be economical for all in the long term. Experts say that for people who have more daily journey, the total expenditure in this model can be more with time. If this model of Hero was successful, then other companies can also bring similar options, which can bring a new change in the EV sector.
Source: www.tv9hindi.com
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