There are several combinations in which the battery can be opted for. We answer all questions about MG’s BaaS program.
18 Sep 2024 | 42389 Views | By Saptarshi Mondal, Autocar India
Earlier last week, MG launched the Windsor as its third EV in our market at an aggressive starting price of Rs 9.99 lakh, ex-showroom. However, that price is exclusive of the battery, which comes on a rental basis at an additional cost of Rs 3.5 per km. This first-of-its-kind ownership ...
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Earlier last week, MG launched the Windsor as its third EV in our market at an aggressive starting price of Rs 9.99 lakh, ex-showroom. However, that price is exclusive of the battery, which comes on a rental basis at an additional cost of Rs 3.5 per km. This first-of-its-kind ownership model promises to reduce the upfront acquisition cost of an EV, and MG claims over a certain period of ownership, it reduces running costs as well.
There, however, has been a lot of uncertainty and confusion around the BaaS (Battery-as-a-Service) model, so here we are answering some of the most important queries.
MG says BaaS is a battery rental scheme, but in essence, it is a finance scheme which is backed by four specific third-party financiers. Essentially, the customer pays the cost of the vehicle up front – or through a loan – and the battery is paid for separately on a rental basis.
Currently, MG has onboarded four financiers, which include Bajaj Finance Limited, Herofin Corp, VidyutTech Services Private Limited and Ecofy and Autovert Technologies Private Limited. Each of these financiers offer their own rental packages and rates. A customer can opt for their desired package depending on their usage, and there are different time periods as well, such as a 3-year plan or a 5-year plan.
Let’s explore each of the battery rental options in a little more detail:
Bajaj Finance – a customer will be charged Rs 3.5 per km for a fixed usage of 1500km irrespective of how much you drive, which means there's no additional charge levied for any additional km run.
Herofin Corp – Here too, the model is similar to the one above. However, there will be additional charges for any distance driven beyond 1500km.
Ecofy and Autovert – Customers with low credit score can opt for this financing option. MG hasn’t revealed the exact interest rate, but the cost per km charge is higher at Rs 5.8. This also requires a minimum monthly running of 1500km, and there will be additional charges for crossing that limit.
VidyutTech – Lastly, and arguably, the simplest financing model is being provided by VidyutTech where you only pay as your usage. There’s no minimum monthly running requirements or additional charges. You only pay Rs 3.5 per km driven, which means, if there’s no running, then there’s no expenditure. However, there will be a certain security deposits that one will need to make.
So, in case of the former two, you pay a minimum monthly charge of Rs 5,250 (3.5 x 1,500), plus any additional charges for additional distance for the latter. In case of Ecofy and Autovert, the minimal monthly charge amounts to Rs 8,700 (5.8 x 1,500).
MG will have telematics devices fitted into the vehicle to calculate the exact distance a customer is driving each month.
No, the car can only be financed as a complete package through one of the tie-up partners. It’s also important to note that cross financing – financing the battery and the car separately – will not be possible. The rate of interest for financing the car will depend on an individual’s credit score and other related factors.
Yes, the Windsor will be available to buy as a whole with prices inclusive of the battery. We are told the complete ex-showroom price of the Windsor will be announced later this week. Here again, one can finance the entire car, just as one would do with any regular car.
Yes, charging costs will be over and above the battery rental cost. Notably, MG is completely waiving off the charging cost for the first one year when using a public charger. One simply has to route the process through the MG eHUB mobile application which already lists all public charging stations, and the amount will be directly billed to the company.
If you have paid for the car fully, and have stopped paying for the monthly battery rental, or rent as per usage, the financiers will repossess the car from the customer, and will pay back an amount factoring in vehicle depreciation for that period, and the outstanding battery monthly rental.
In case a customer wants to opt out of the BaaS program, one can pay the outstanding amount for the battery as per the contract, and any outstanding amount for the vehicle, and retain the complete car.
Yes, the car can be returned to MG as the company is providing an assured buyback value of up to 60 percent provided one has opted for the MG Shield Plan, the value depending on the condition of the car.
MG is offering a lifetime warranty for the battery with unlimited kilometres, which means any malfunctioning of the battery will be covered under warranty. However, if there’s an accidental damage to the battery, that will be covered by insurance, just as with any regular car.
In case one wants to sell the car before the tenure of the plan is over, one has to repay any outstanding amount and the balance amount for both vehicle and battery.
If a customer is financing both the car and the battery, MG says one can save up to Rs 2.8 lakh over a compact ICE SUV over a 3-year period, and up to Rs 8.34 lakh over a midsize SUV. In case of a 5- year plan, the saving are even greater – Rs 4.20 lakh over a compact ICE SUV and Rs 10.17 lakh over a mid-size SUV.