MG Motor India’s Battery as a Service (Baas) rental scheme is seeing some traction in our market with the brand claiming the number of buyers who opt for the scheme is increasing, with a suprising higher adoption coming from Tier III markets. The rental scheme allows buyers to buy their MG EV at a much lower initial cost.
- Increasing BaaS demand from Tier III cities
- 15 percent of MG EV buyers opted for BaaS
Demand for MG Windsor, Comet, ZS EV on BaaS rising
Number of financiers increased to 6 from 4
Speaking to media, MG Motor India confirmed that among the reasons for greater adoption of the rental scheme is rising demand from Tier III cities. Around 15 percent of MG EV buyers – the portfolio currently includes the Comet, ZS EV or Windsor – have opted for BaaS. In fact, In February, we had reported that 15 percent of MG Windsor buyers had chosen the BaaS programme.
In order to further increase the number of owners who opt for the rental scheme, MG has also increased the number of financiers to a total of 6 – plans from Bajaj Finance Limited, Herofin Corp, VidyutTech Services Private Limited and Ecofy/Autovert Technologies Private Limited were available at the launch of the programme in September 2024, and now, schemes from IDFC First Bank and Kotak Mahindra Prime are also on offer. The brand also says that clearer communication from the dealers has also helped educate customers better, providing opportunities for greater BaaS sales.
MG EV BaaS buyers pay about 40 percent less initially
| MG EV prices with BaaS, ex-showroom, India | ||||
|---|---|---|---|---|
| Model | BaaS price range | Rental cost | Price range | Difference |
| Comet | Rs 4.99-7.50 lakh | Rs 2.9/km | Rs 7.36-9.86 lakh | 39.48% |
| Windsor | Rs 9.99-12.50 lakh | Rs 3.9-4.5/km* | Rs 14.00-17.50 lakh | 40.07% |
| ZS EV | Rs 13.99-20.76 lakh | Rs 4.5/km | Rs 18.98-26.64 lakh | 32.00% |
*Recently launched MG Windsor Essence Pro rental cost is higher
Based on the table above, one can see that those who opt for the BaaS programme pay about 40 percent less initially, and then finance the battery separately. Similar to a typical car loan, the battery cost is paid in monthly instalments and as per the agreement with the financiers, owners might have to pay either a predetermined amount or an amount based on actual usage (per kilometre), for a period of up to 8 years.
IMAGE SOURCE: GA.Automotive via YouTube
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