Current Scenario

India is slowly shifting towards a green revolution by launching many EV vehicles by almost every brand.

Customers are not used to it and will take time to shift their mindset from their regular ICE vehicles to EVs due to frequent reasons like:

As a major component in an electric car is its battery, the battery cost is almost half of the car’s price. Also, after a few years when the cells are exhausted, changing batteries is a hefty bill.

Secondly, there is a huge gap between an IC engine and an electric car of the same model due to higher prices of electrical components.

Also the range anxiety of electric vehicles with poor charging facilities and EV infrastructure in the country.

These are some of the major, andvery valid reasons Indian consumers are avoiding electric vehicles in the current scenario, and it will take time to normalize the conditions.

MG’s Solution To This Challenge.

To overcome the above problems, MG, along with their newly partnered venture with JSW, thought of launching a very smart move known as BAAS, a Battery As A Service subscription model.

In this model, you only buy a car, and the battery belongs to the company; hence, you get the car at a discounted rate.

As we only pay for the car, the batteries are financed by providers like Bajaj Finance, Hero FinCorp, Vidyut, and Ecofy.

Hence, we just select the plan and only need to pay for the kilometers we drive.

	Bajaj Finance	Hero FinCorp	Vidyut	Ecofy
Cost Per Km ₹	3.5	3.5	3.5	5.8
Minimum Monthly Kms	1500	1500	NA	1500
Total Monthly Plan Cost ₹	5250	5250	As Per Use	8700
Extras	No Charge for Extra km.	Additional Charges per Km Above 1500 km	Yearly Battery Service charges extra	Additional Charges per Km Above 1500 km

Benefits Of Battery As A Service Model.

You get an unlimited-kilometer battery warranty from the manufacturer for the car.
You get a buyback assurance of up to 60% of the car value (*only if the maintenance package is purchased).
1 year of free DC fast charging from MG.

Who Owns The Battery.?

In short, batteries are owned by the company, and you will just pay part by part for the cost of batteries.
For example, a Windsor with a battery costs Rs 14 lakhs, and a Windsor without a battery costs Rs 10 lakhs.
So Rs 4 lakh is the battery price, which is paid in installments until it’s completed.

Conclusion.

So BAAS is just a financing option, giving more assurance and ease of ownership at the same price but in a different way.
Overall, the running cost per kilometer will go up to 5 rupees per kilometer with BAAS.
Which is still cheaper than a petrol car, which costs almost 8 rupees per kilometer.