Photo Credit: iStockMahindra is testing a different response to one of the biggest obstacles to electric vehicle adoption: sticker shock.In India, the automaker's new BE 6 electric SUV can be bought for roughly 800,000 Indian rupees (about $8,400) less upfront — but only if the buyer agrees to rent the battery rather than own it.Here's what to knowUnder the setup described by 7News, buyers receive the BE 6 with its 59-kilowatt-hour lithium iron phosphate battery already installed, but the battery is billed separately from the rest of the SUV. Splitting the pack out from the purchase is what reduces the vehicle's starting price.AdvertisementAdvertisementApproved customers are charged about 6.04 Indian rupees (.064 USD) per mile. The upfront reduction is significant: a BE 6 One costs INR 19.45 lakh, or about $20,480, with the battery included, but falls to INR 11.45 lakh, or around $12,056, under Mahindra's "Go with the Flo" battery-rental plan.Choosing that option means committing to eight years and at least 1,118 miles (1,800 kilometers) of use per month. Mahindra said customers can later buy the battery outright by paying the remaining balance.More backgroundBattery packs are among the most expensive components in any EV, so unbundling them is an attempt to make electric driving more accessible. For households focused on monthly cash flow, a lower purchase price may matter more than full ownership on day one.AdvertisementAdvertisementEVs can already save drivers money in other ways. In addition to avoiding trips to the gas station, electric vehicles generally require less routine maintenance because they have fewer moving parts and do not need oil changes. They can also reduce tailpipe pollution in the communities where people live and drive.Other automakers have explored similar programs. As 7News noted, Chinese automaker Nio was an early mover on battery-as-a-service in 2020, and Tata has rolled out a comparable option in India for its Punch.ev.What's being done?Automakers are experimenting with more flexible EV pricing rather than treating every purchase as a traditional one-time sale. If the strategy proves successful, it could serve as a template for lowering the barrier to entry in other markets where buyers are seeking less expensive ways to switch to an EV.Mahindra is also updating the BE 6 itself, with interior changes coming to many trims, according to 7News. Pratap Bose, Mahindra's head of design, said some customers "loved the original design," but feedback from potential owners was that "the interior wasn't what they were into."Where can I learn more?Mahindra's battery-rental plan is one example of how automakers are trying to make EVs feel more affordable upfront. Other stories look at the practical factors that can sway drivers too, including real-world charging costs, maintenance savings, and simply getting more time behind the wheel.AdvertisementAdvertisement• In many markets, car rentals could play a bigger role in easing EV range anxiety.• For many EV owners, cheap charging and maintenance were decisive enough to justify switching.• On busy U.S. travel weekends, public charging still costs far more than some Tesla stations.Sticker price is only one part of the EV equation. Day-to-day charging costs and the confidence that comes from driving an EV can matter almost as much.Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
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