- 12 Dec 2024
- ICICI Securities
MAHINDRA LAST MILE MOBILITY TO FORAY INTO BAAS MODEL
News: According to media sources, Vidyut, a Bengaluru-based electric vehicle (EV) start-up, is poised to expand its financing options by partnering with four OEMs by the financial year 2024-25. In a significant move, Vidyut has recently collaborated with Mahindra Last Mile Mobility (MLMML) to introduce a Battery-as-a-Service (BaaS) financing model aimed at making EV ownership more accessible. This model allows customers to rent batteries for Mahindra’s EVs, including the ZEO and Zor Grand, starting at a minimal fee of ₹ 2.50 per kilo-meter for 4W and ₹ 1.45 per km for 3W. Furthermore, Vidyut will offer MLMML’s vehicle customers the option to either buy out the battery or continue with the battery rental program after the financing term ends.
Views: Vidyut has launched BaaS in JSW MG Motor India recent launch i.e. MG Windsor which was the best-selling EV for the month of October’24 as well as November’24. As MLMML functions in the CV space this is a positive development as the upfront cost of the vehicle reduces by up to 40% as compared to ICE CVs and will help gain traction in EV penetration in CV domain and boost growth in this segment for M&M. With leadership position in the E-3W space and consistent positive surprise on new product launches, ability to grow ahead of market and persistent focus on capital efficiency (RoE>=18%), we remain positive on the stock.
Impact: Positive