MG Motor India betting big on the Battery-as-a-Service (BaaS) Program
MG Motor India has expanded its Battery-as-a-Service (BaaS) program to include two of its popular electric vehicles – the MG Comet and the MG ZS EV. This unique ownership model allows buyers to purchase the vehicle without the battery, opting instead to rent the battery based on usage. The program aims to lower the upfront cost of acquiring an electric vehicle (EV) and make EV ownership more accessible.
Pricing Breakdown for MG Comet and ZS EV
With the introduction of the BaaS program, the MG Comet is now priced at Rs. 4.99 lakhs, excluding the battery, with an additional rental cost of Rs. 2.5 per km for the battery. Similarly, the MG ZS EV SUV starts at Rs. 13.99 lakhs, excluding the battery, with a rental charge of Rs. 4.5 per km. These figures mark a significant reduction in the entry price for both vehicles, as the BaaS option brings down the Comet’s price by Rs. 2 lakhs and the ZS EV’s price by Rs. 4.99 lakhs compared to their standard pricing.
For comparison, the MG Comet, when purchased with the battery, is priced between Rs. 6.99 lakhs and Rs. 9.53 lakhs. The ZS EV, in its entirety, costs between Rs. 18.98 lakhs and Rs. 25.44 lakhs.
How BaaS Works
The BaaS program offers a novel approach to EV ownership, targeting consumers who are interested in reducing their initial financial outlay. Under this scheme, the battery rental is based on the distance traveled, which could potentially reduce running costs in the long term. However, the vehicles are still available for purchase with the battery included, giving consumers multiple ownership models to choose from.
This financing option, already available on the recently launched MG Windsor, has brought in four key financiers – Bajaj Finance Limited, Herofin Corp, VidyutTech Services Private Limited and Ecofy and Autovert Technologies Private Limited – to support the program for the Comet and ZS EV as well.
Considerations on Total Cost of Ownership
While the BaaS program lowers the entry price, it raises questions about the total cost of ownership over time. Factors like rental costs, charging expenses and long-term financial implications are areas of interest for potential buyers. MG Motor India has not yet provided detailed pricing for the various variants of the Comet and ZS EV under this model. However, a full price list for the Windsor, which follows a similar structure, is expected to provide clarity for those interested in the Comet and ZS EV.
In summary, MG’s BaaS program is designed to make electric vehicles more affordable upfront, especially for those hesitant about the higher initial cost of purchasing an EV. As the program evolves, more information about its long-term benefits and costs will likely emerge, helping consumers make informed decisions.
The Battery-as-a-Service model introduced by MG Motor India is an innovative step toward reducing the barriers to EV adoption. By offering a lower entry price for the MG Comet and ZS EV, MG hopes to attract a broader range of consumers while still offering the traditional purchase model for those who prefer to own the battery outright.
