Piaggio India Disrupts Electric 3-Wheeler Market with Game-Changing ‘Battery Subscription Model’ for a Post-subsidy World

by Suman Gupta

–          Makes 3W EV ownership more attractive and affordable with a starting price of INR 2.59 lakhs (ex-showroom Maharashtra). A convenient monthly battery subscription simplifies ownership and eliminates upfront battery cost.

–          The unique solution from Piaggio India removes customers’ apprehension about battery maintenance, lifespan, and resale, giving them peace of mind. It also ensures continued adaptability post subsidies.

Pune, India – April 30, 2024 – Piaggio Vehicles Pvt Ltd (PVPL), a subsidiary of the Piaggio Group and a leading Indian manufacturer of small commercial vehicles and electric three-wheeler (3EV) pioneers, has announced a groundbreaking “Battery Subscription Model” for its Apé Elektrik electric 3Ws.

Unleashing a New Era for EV Ownership

This innovative program aims to revolutionize 3EV ownership by separating the upfront cost of the vehicle from the battery. Customers can now purchase the Apé Elektrik for INR 2.59 lakhs (ex-showroom) and subscribe to a high-quality Piaggio-approved battery pack for a monthly fee leased through the dealership.

The subscription model goes beyond affordability. It addresses a major pain point – battery anxiety.  Customers can now enjoy the benefits of electric mobility without worrying about battery maintenance, lifespan, or replacement costs. Piaggio is taking full responsibility for battery health, offering peace of mind for long-term EV ownership.

Piaggio India believes this model can be a game changer for policymakers looking to sustain EV growth beyond the subsidy era. By addressing affordability and battery concerns, the subscription model can encourage wider adoption of electric 3Ws, leading to cleaner transportation and reduced emissions.

Subscription Model Details

• Customers purchase the Apé Elektrik chassis directly from dealerships for INR 2.59 lakhs (ex-showroom Maharashtra).
• The battery is provided to the customer at the dealership for a monthly rent.
• The vehicle chassis and powertrain are registered in the customer’s name, allowing for loans with hypothecation on the chassis and powertrain through NBFCs.

Subscription Tenure and Benefits

• The battery lease term is 120,000 kilometres or 8 years for cargo vehicles and 150,000 kilometres or 8 years for passenger vehicles.
• After reaching the designated mileage, the monthly rent reduces to INR 0.
• The subscription includes battery replacements at the same rental amount after the initial lease term.

Initial Availability and Expansion Plans

The battery subscription model will be launched in all the key Indian cities (30 cities)

The subscription model requires no additional documentation from customers and of desired, allows them to unsubscribe the program or sell their vehicle at any time like a regular buy.

Speaking about the announcement Mr Diego Graffi, Chairman and MD Piaggio Vehicles Pvt Ltd said, “Piaggio India has a long history of prioritizing customer satisfaction through innovative products and solutions. The industry-first ‘Battery Subscription Model’ removes another barrier to EV adoption by addressing battery concerns and offering a cost-effective ownership option. We are confident this model will  sustain EV growth  in a post-subsidy environment. 

Adding his views, Mr Amit Sagar, Executive Vice President – CV Domestic Business at Piaggio Vehicles Pvt Ltd said, “Customer can now own an electric 3W at downpayment of Just INR 30,000 and an EMI of INR 8,000 per month which makes it as easy to own as compared to 3W CNG. Battery Subscription model will bring in a new wave of EV adoption in the industry. Our initial interaction with channel partners and consumer makes us believe that we have a winner. We believe that the model will also continue the EV adoption in a post subsidy world ensuring that customers and manufacturers get the best from the massive EV opportunity.”