MG Motor India is receiving a good response to its Battery-as-a-Service (BaaS) rental scheme, mainly from Tier III markets. The scheme, under which customers pay a significantly lower upfront price for EVs and lease the battery separately, now accounts for 15% of MG's electric vehicle sales.
The BaaS model currently sells three EVs – the Comet, ZS EV, and Windsor – and offers customers the benefit of lower initial cost, with follow-up monthly battery rental fees.
For example, the Comet on BaaS ranges from ₹4.99 lakh to ₹7.50 lakh, compared to its total price of ₹7.36 lakh to ₹9.86 lakh – a nearly 40% lower initial cost. The Windsor and ZS EVs also save approximately 40% and 32%, respectively.
They are charged a fixed or usage-based rental fee (between ₹2.9/km and ₹4.5/km) depending on the model and battery usage, up to a maximum of eight years. There is a bit of a premium in the Windsor Essence Pro, which was recently launched.
MG attributes the growing popularity of BaaS to improved funding alternatives and improved communication at the dealer level. As of the September 2024 launch of the programme, there are four additional financing partners, including IDFC First Bank and Kotak Mahindra Prime, in addition to Bajaj Finance, Herofin Corp, VidyutTech, and Ecofy/Autovert.
This growth is a reflection of a shifting buying mindset, particularly in tier-II cities where value for money is the greatest concern. MG will continue to fuel BaaS growth by further demystifying ownership and increasing EV accessibility throughout India.
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