JSW MG Motor Pvt. Ltd., a joint venture between India's JSW Group and China's SAIC Motor Co., has made electric cars more affordable by offering an electric vehicle (EV) under Rs 5 lakh. However, there’s a catch—this price doesn’t include the cost of the battery.
How Does It Work?
The company has introduced a Battery-as-a-Service (BaaS) program for its electric cars, which means you can buy the car at a lower price but will have to pay separately for the battery. This model has helped reduce the starting price of two of its electric cars:
- MG Comet: Rs 4.99 lakh, with an additional battery rental of Rs 2.5 per km.
- MG ZS EV: Rs 13.99 lakh, with an additional battery rental of Rs 4.5 per km.
This approach lowers the initial cost of buying the car, but users must pay a battery rental fee based on how much they drive. Additionally, the charging cost, which is around Rs 1 per kilometer, is paid by the driver.
What Is Battery-as-a-Service (BaaS)?
Think of BaaS like a mobile data plan. You pay for how much you use. For example, if you drive the MG Comet, you’ll pay Rs 2.5 per kilometer for the battery, and if you use the MG ZS EV, you’ll pay Rs 4.5 per kilometer.
For those who prefer, the option to buy the car with the battery included in the total price is still available. Additionally, there’s an assured 60% buyback value after three years of ownership, which adds to the affordability.
Other Options
The Windsor EV, another electric car by JSW MG Motor, was launched recently under the same BaaS model. The starting price is Rs 9.99 lakh, and the battery rental is Rs 3.5 per kilometer. However, buyers will need to commit to a minimum battery rental payment of Rs 5,250 per month, which covers 1,500 kilometers of driving. If you drive more than that, you'll pay Rs 3.5 per kilometer for the extra distance.
JSW MG Motor’s banking partners, like Bajaj Finserv and Hero Fincorp, help handle these payments.
A New Way of Owning an EV
Satinder Singh Bajwa, the chief commercial officer at JSW MG Motor, said, “We want to make EV ownership easier and more affordable with BaaS. We hope this will encourage more people to switch to electric cars.”
A Look Back at India’s First Affordable Electric Car
The MG Comet isn’t India’s first electric car priced under Rs 5 lakh. That honor goes to the Reva, launched in 1994 at Rs 2.88 lakh. It was a small, two-seater car that paved the way for electric vehicles in India. Mahindra & Mahindra later acquired Reva in 2010 and launched the Mahindra e2O, which was priced between Rs 6.5 lakh and Rs 8.5 lakh.
Features of MG Comet and ZS EV
The MG Comet is a compact, two-door car designed for city driving. Although it’s small, it can seat four passengers, though it might be a bit tight. The car has a range of 230 km on a single charge, making it perfect for short trips around the city.
The MG ZS EV, on the other hand, is a larger SUV with a range of 461 km per charge. It competes with other electric SUVs like the Tata Curvv and BYD Seal in India’s growing EV market.
Conclusion
JSW MG Motor's Battery-as-a-Service model brings electric cars within reach for more people, but it comes with ongoing costs for battery use. This new model, combined with India’s shift towards greener transportation, could make electric vehicles more popular in the years to come.