Piaggio India launches battery subscription model for Apé Elektrik 3Ws

Pune: Piaggio Vehicles Pvt Ltd (PVPL), a subsidiary of the Piaggio Group and a prominent Indian manufacturer of small commercial vehicles and electric three-wheelers (3EV), has unveiled a novel "Battery Subscription Model" for its Apé Elektrik electric 3Ws.

This innovative initiative separates the upfront cost of the vehicle from the battery, making electric 3W ownership more accessible and affordable. Customers can acquire the Apé Elektrik chassis for Rs 2.59 lakhs (ex-showroom) and subscribe to a Piaggio-approved battery pack for a monthly fee leased through the dealership.

The subscription model aims to alleviate battery anxiety by providing customers with peace of mind regarding battery maintenance, lifespan, and replacement costs. Piaggio India believes this approach can sustain EV growth beyond the subsidy era and promote wider adoption of electric 3Ws, contributing to cleaner transportation and reduced emissions.

Key features of the subscription Model:

- Customers purchase the Apé Elektrik chassis directly from dealerships for INR 2.59 lakhs (ex-showroom Maharashtra).

- The battery is leased to the customer at the dealership for a monthly rent.

- The vehicle chassis and powertrain are registered in the customer's name, enabling 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 is reduced to INR 0.

- The subscription includes battery replacements at the same rental amount after the initial lease term.

The battery subscription model will be launched in 30 key Indian cities, including Gurgaon, Agra, Warangal, Raipur, Mathura, Nizamabad, Nagpur, Lucknow, Kurnool, Bangalore, Kanpur, Anantpur, Tumkuru, Allahabad, Vijayawada, Mysore, Delhi, Guntur, Kolar, Noida, Vizag, Mumbai, Ghaziabad, Chennai, Ahmedabad, Greater Noida, Hyderabad, Pune, and Faridabad.

The subscription model requires no additional documentation from customers and allows them to unsubscribe or sell their vehicle at any time, similar to a regular purchase.

Mr Diego Graffi, Chairman and MD of Piaggio Vehicles Pvt Ltd, stated, "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."

Mr Amit Sagar, Executive Vice President - CV Domestic Business at Piaggio Vehicles Pvt Ltd, emphasized the affordability of electric 3W ownership under this model, foreseeing a new wave of EV adoption in the industry and continuing EV adoption in a post-subsidy world.