Over the years, I’ve had the opportunity to observe how different markets in Asia are embracing electric mobility, each with its own set of challenges and breakthroughs. Indonesia is at an exciting crossroads. Despite growing awareness about sustainability and government incentives, two major barriers still hold back many potential EV buyers: the high upfront cost and concerns around battery life.
That’s why VinFast’s recent move in Indonesia caught my attention. The Vietnamese automaker is taking a bold and innovative route with its Battery-as-a-Service (BaaS) model, and it’s clearly striking a chord with consumers.
Would you believe that almost 90% of VinFast buyers in Indonesia have opted for their battery subscription plan? That’s not just a clever marketing win; it’s a fundamental shift in how people perceive electric vehicle ownership. By decoupling the battery from the vehicle’s purchase price, VinFast has found a way to make EVs more financially accessible and psychologically reassuring.
How Battery-as-a-Service Works
The concept of BaaS is transformative yet simple: instead of owning the battery which can account for 30-40% of an EV’s total cost consumers subscribe to it as a service. This model has already seen significant success in other parts of Asia, particularly China and India. These markets are characterised by high-density urban populations with limited access to home charging, creating the ideal conditions for BaaS to thrive with strong government support.
VinFast is now applying this proven strategy to Indonesia, adapting it to address local consumer pain points with precision. The approach focuses on lowering the financial and psychological barriers to entry, making the transition to electric mobility smoother than ever.
Reducing the Risk, Enhancing the Appeal
VinFast’s BaaS model is designed to directly counter the primary concerns of prospective EV buyers. By separating the cost of the vehicle from its most expensive component, the company delivers a powerful value proposition.
Below is a summary of the key benefits of VinFast’s BaaS model in Indonesia:
Benefit | Details and Data Points |
Cost Savings | Up to IDR 113 million saved on the VF e34 (other models: VF 3: IDR 74.13M, VF 5: IDR 91.17M, VF 6: up to IDR 49.99M, VF 7: up to IDR 60M) |
Monthly Subscription | Starts at IDR 253,000 (VF 3), IDR 468,000 (VF 5), IDR 593,000 (VF e34), IDR 650,000 (VF 6), IDR 905,000–1,031,000 (VF 7) |
Mileage Policy | Unlimited mileage for all subscription plans |
Battery Warranty | Lifetime warranty: Replacement if capacity drops below 70%; performance and maintenance included |
Charging Benefits | 3 years of free charging at VinFast’s V-GREEN stations |
Resale Guarantee | Buyback programme guarantees up to 90% of value after 6 months, 70% after 3 years |
Here’s what stands out for me:
- Lower Entry Barrier: Consumers can save substantially when they purchase a car without the battery. For instance, with VinFast’s VF e34 model, the saving can be as much as IDR 113 million. This makes electric mobility genuinely attainable for a wider audience. The subscription plan offers unlimited mileage, combining affordability with freedom.
- No More “Battery Anxiety”: The subscription includes a lifetime warranty that covers performance, maintenance, and even free replacement if the battery’s capacity drops below 70%. This completely removes one of the biggest hesitations we’ve seen in our consumer studies, the fear of costly battery degradation.
- Predictable Ownership Costs: With a fixed monthly subscription, users move from worrying about potential high replacement costs to enjoying a transparent, manageable payment structure. This predictability is a key factor in building consumer confidence for long-term ownership.
As someone who has spent years studying automotive consumers across Southeast Asia, I see this as more than a pricing model; it’s a trust model.
Beyond the Sale: Building Long-Term Value
What’s equally impressive is how VinFast is embedding this model within a complete ownership ecosystem. They’re not just selling EVs; they’re offering an experience of reassurance that extends far beyond the initial purchase.
- Added Convenience: Three years of free charging within VinFast’s network eliminates one of the key operational worries for new EV owners, making the day-to-day experience seamless.
- Assured Resale Value: A buyback programme guarantees vehicle value based on age, directly addressing the uncertainty many consumers feel about long-term depreciation.
- Environmental Commitment: VinFast’s BaaS model aligns with a circular economy. The company has partnered with recycling specialists like Li-Cycle to ensure that old batteries are repurposed or recycled responsibly. This focus on sustainability not only reduces environmental impact but also adds another layer of value for conscientious consumers.
From a market research standpoint, this is an excellent example of consumer-centric innovation. By retaining ownership of the battery, VinFast maintains an ongoing relationship with its customers, one supported by technology that monitors battery health and ensures reliability.
The Bigger Picture for Southeast Asia and Beyond
To provide a clearer perspective, here’s a comparative table highlighting BaaS adoption across regions, drawing on observed figures and key success indicators:
Region | BaaS Adoption Level | Notable Markets | Estimated EVs Using BaaS | Key Success Factors | Main Challenges |
Asia | High | China, India, Indonesia | China: >1M (NIO swaps), Indonesia: ~2,800 (VinFast, 2025) | – High urban density | – Scaling beyond urban centers |
Western | Low to Moderate | Select pilots in Europe | <50,000 (pilot programs) | – Urban pilot programs | – Lack of standardization |
While VinFast’s sales of around 2,800 units in Indonesia in the first nine months of 2025 may look modest, the story behind those numbers is powerful. It shows how consumer behaviour can shift dramatically when brands directly address the core barriers to adoption. For a region like Southeast Asia, where affordability and confidence remain key decision factors, this model could very well become a template for faster EV penetration.
However, as shown in the table, the BaaS model is not a universal solution. In Western markets, its adoption faces significant hurdles. The lack of battery standardisation across different manufacturers, combined with suburban living patterns where home charging is common, makes a widespread battery-swapping infrastructure less feasible.
Despite these challenges, the future of BaaS looks promising, especially in specific sectors. There is significant potential for its application in commercial fleets, where operational efficiency and predictable costs are paramount. It is also well-suited for two- and three-wheeler vehicles in dense urban centres. Looking ahead, BaaS could even play a role in grid stabilisation by allowing EV batteries to store and supply energy as needed.
Final Thoughts
At Divergent Insights, we have strong presence in Indonesia and Vietnam and with our on-the-ground expertise in automotive research, we’ve seen this pattern emerge repeatedly: real breakthroughs happen when innovation aligns with consumer emotion and trust.
VinFast’s approach is a perfect reflection of that. It’s not just a strategy to sell more EVs; it’s a step toward reshaping mobility through service-based ownership. As the EV revolution continues, I believe we’ll see more automakers exploring similar subscription-driven ecosystems, especially in markets where consumers seek flexibility and assurance over ownership.
The big question now is: Could Battery-as-a-Service be the catalyst for mass EV adoption in other emerging markets? I’d love to hear your thoughts on what you think will drive the next big leap in EV adoption.
