ACKO Partners with Ola Electric and Ather Energy for Battery Warranty Plan

ACKO, a prominent private insurance company, has announced its Extended Battery Warranty Plan in collaboration with Ola Electric and Ather Energy. The new plan is designed to support the rapidly growing electric vehicle (EV)  industry by addressing customer concerns and enhancing the overall EV ownership experience.

Building Infrastructure for the EV Landscape

By partnering with original equipment manufacturers (OEMs) like Ola Electric and Ather Energy, ACKO aims to create a robust infrastructure for the EV market. The Extended Battery Warranty Plan offers comprehensive insurance solutions to EV customers, tackling existing pain points and promoting a radical shift in the fast-evolving EV sector.

Extended Battery Warranty Plan: Addressing Customer Concerns

ACKO's Extended Battery Warranty Plan focuses on alleviating concerns around battery life and performance, which have been cited as significant barriers to EV adoption. By partnering with OEMs, the plan seeks to improve EV affordability, allowing banks to extend loan durations and subsequently reduce monthly instalment payments for customers.

The plan offers battery protection until the fourth or fifth year of ownership and provides performance coverage for up to 60,000 km. It also includes comprehensive coverage for other EV components in addition to the battery. A unique feature of the plan is its transferability, allowing the warranty to be passed on to a new owner in case of a vehicle sale. This transferability, combined with the increased cost visibility for batteries and other vehicle components, is expected to boost resale values for EVs.

A Growing Market: The Future of Electric Vehicles in India

The EV market in India has witnessed significant growth, with a 223% increase in sales in 2022. This upward trend is expected to continue, with a compound annual growth rate (CAGR) of 44.5% projected between 2020 and 2025.

A recent research report by ACKO and YouGov India, titled "Is the Future Electric?", revealed that 49% of EV owners believe battery replacement costs to be a considerable aspect of EV ownership. The report also highlighted that 66% of respondents assume battery life lasts between two to five years, with a majority of EV users recognizing the role of charging behavior in battery longevity.

Animesh Das, VP – Motor Underwriting at ACKO, expressed confidence in the partnership with OEMs, stating that it would help address customers' concerns about the longevity and performance of electric vehicles. He added that the initiative would "ease the lives of our customers and promote a nationwide rapid adoption of EVs."

By offering innovative insurance solutions tailored to the unique needs of the EV market, ACKO, Ola Electric, and Ather Energy are poised to facilitate the growth and adoption of electric vehicles in India, addressing customer concerns and promoting a more sustainable future.

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