In today’s fast-paced world, where businesses are increasingly relying on electric vehicles (EVs) and advanced technologies, the need for flexible and efficient energy solutions has never been more critical. On an annual basis, the sales for the E2W segment recorded an increase of ~28% in FY2024 over sales in FY2023.
This shows that the sector needs more adaptable and scalable solutions to address EV needs for individuals, businesses and fleets.
One such innovative solution gaining traction is battery-as-a-service. These services offer businesses a practical approach to managing their energy needs, providing a level of flexibility and scalability that traditional ownership models often lack.
The Rise of On-Demand Charging Solutions
With the global push towards sustainable transportation, EVs have become an integral part of many businesses’ fleets. However, the challenge of maintaining and managing EV batteries remains a significant hurdle. Traditional battery ownership involves high upfront costs, maintenance issues, and concerns about battery degradation over time. This is where on-demand charging and battery subscription services come into play.
Battery subscription services provide businesses with a flexible, pay-as-you-go model for battery usage. Instead of purchasing and owning batteries outright, companies can subscribe to a service that allows them to use batteries as needed, with the added benefit of routine maintenance and upgrades. This model aligns perfectly with the dynamic needs of modern businesses, offering a cost-effective and efficient alternative to traditional battery ownership.
How Battery Subscription Services Work
Battery subscription services operate on a straightforward premise: businesses pay a recurring fee to access a fleet of batteries that can be swapped or recharged as needed. These services typically include several key features. Here are a few on-demand charging modules –
Battery Leasing: One of the most significant benefits of battery leasing is the reduction in upfront costs. By leasing the battery rather than purchasing it outright, businesses can lower their initial investment by up to 40%. This model is particularly advantageous for companies looking to scale their fleets without the burden of high capital expenditure.
Battery leasing typically involves a monthly rental fee. Additionally, leasing mitigates the risk of battery depreciation and obsolescence, ensuring that businesses always have access to the latest technology.
Battery Leasing + Swapping: Battery swapping is another innovative solution gaining traction in the industry. This model addresses the common concern of range anxiety by allowing riders to exchange depleted batteries for fully charged ones at designated swap stations. Unlike traditional refueling, which can be time-consuming, battery swapping takes just 52 seconds and adds up to 98 km of range to the vehicle.
For fleet operators, this means minimal downtime and continuous operation. In fact, battery swapping has been shown to increase the income of gig workers by Rs 200-300 per day due to reduced wait times and uninterrupted service.
Customisable Fleet Solutions: The modern fleet management landscape demands solutions that are both adaptable and comprehensive. Customised fleet solutions are designed to meet the unique needs of different businesses. These solutions often include advanced fleet management tools, dedicated support, and a wide network of service centers. Such a tailored approach ensures that fleet operators can efficiently monitor and manage their vehicles, leading to enhanced performance and reduced operational costs.
Integrated Service and Maintenance:
To complement flexible battery solutions, integrated service and maintenance programs are essential. These programs offer regular maintenance, advanced diagnostics, and efficient repair solutions, all aimed at keeping fleets in optimal condition. With fast turnaround times for repairs and a robust network of service centers, businesses can minimize downtime and maximize productivity.
One notable aspect of these programs is the inclusion of an extended warranty package, which can cover up to 75,000 km. This added assurance provides businesses with peace of mind, knowing that their investments are protected and their fleets are well-maintained.
Benefits for Businesses
The adoption of battery subscription services offers numerous benefits for businesses, including:
Cost Efficiency: Traditional battery ownership involves significant upfront costs, which can be prohibitive for many businesses. Subscription services eliminate these initial expenses, allowing companies to allocate resources more efficiently. Instead of investing heavily in batteries, businesses can budget for predictable, recurring subscription fees.
Operational Flexibility: The on-demand nature of subscription services provides businesses with unparalleled operational flexibility. Companies can easily adjust their battery usage based on changing needs, ensuring they are never over- or under-equipped.
Reduced Downtime: Battery subscription services often include rapid battery replacement options, minimising downtime and keeping operations running smoothly. This is crucial for businesses that rely heavily on EVs and cannot afford interruptions in their operations.
Access to Advanced Technology: Subscription services provide businesses with access to the latest battery technology without the need for frequent purchases. As advancements in battery technology occur, companies benefit from upgrades and improvements automatically.
Simplified Management: With maintenance and support handled by the service provider, businesses can focus on their core operations rather than dealing with battery-related issues. This streamlined approach simplifies energy management and reduces administrative burdens.
The Future of Battery Subscription Services
As the demand for electric vehicles and sustainable energy solutions continues to grow, battery subscription services are expected to play an increasingly prominent role in the business landscape. Innovations in battery technology and advancements in subscription models will likely drive further growth and adoption.
In conclusion, adapting to on-demand charging through flexible battery subscription solutions offers businesses a modern, efficient, and cost-effective approach to managing their energy needs. By embracing these services, companies can enhance operational flexibility, reduce costs, and stay at the forefront of technological advancements, positioning themselves for success in an evolving energy landscape.
Pritesh Talwar, President, EV Business, Lectrix EV
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)
