A New Approach to Electric Vehicle Ownership?
The automotive industry has spent years trying to crack the code on making electric vehicles more accessible to buyers. While that’s usually meant reducing battery costs or offering government incentives, Malaysian carmaker Perodua has taken a completely different route with its newly launched electric vehicle. The new QV-E carries a price tag of approximately $19,400 without the battery included, making it one of the most affordable electric vehicles… on paper. The catch is that buyers must commit to a nine-year battery subscription at around $67 monthly, which works out to a reasonable $7,236 over the same period.
This Battery-as-a-Service (BaaS) model is a pretty novel way to drive electric vehicle adoption through lower sticker prices. While Chinese manufacturers like Nio have experimented with battery swapping stations and leasing programs, mainstream automakers have avoided separating the battery from the upfront price. The reasons are obvious. Car buyers expect to own what they pay for. Though in this case, the buyer is protected from battery degradation as the car ages, arguably one of the biggest concerns with electric vehicle ownership in the long term.
Perodua
The Battery Plan That Beats a Warranty
The company retains ownership of the battery throughout the nine-year period and handles all maintenance related to it. If the battery's state of health drops below 70 percent, Perodua will replace it at no additional cost. This guarantee extends beyond the typical eight-year warranty most electric vehicles carry.
The QV-E's 204-horsepower electric motor runs on a 52.5 kWh LFP battery offering a claimed range of 276 miles NEDC or an estimated 203 miles EPA. For buyers financing the vehicle, the battery subscription fee can be bundled into their monthly car payment. Once the car loan is paid off, the remaining battery subscription payments transfer directly to Perodua through their mobile app.
Perodua
Why Subscriptions Usually Backfire
A majority of customers have not taken kindly to subscription services in the automotive industry. BMW faced severe consumer backlash when it introduced a monthly subscription for heated seats. Turns out paying extra to unlock hardware already installed in the vehicle doesn’t go down well.
On the other hand, Perodua's battery subscription might actually work. Batteries represent genuine liabilities, as they degrade over time, require eventual replacement. By taking battery ownership away from the customer, Perodua addresses real concerns about resale value and replacement costs. This should make owning a used QV-E more attractive, since buyers won't worry about buying an EV with an aging battery outside warranty coverage.
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