Battery-as-a-Service

In India, EV buyers are still finding it difficult to make the transition to electric due to the higher investment costs. Compared to ICE vehicles, EVs are generally offered at a much higher price to offset the cost of the battery needed to power these vehicles for a longer range. Electric SUVs and MUVs range from Rs10-13 lakh for the Tata Nexon and Tata Punch, Rs17-20 lakh for the Tata Curvv, MG ZS EV, and Mahindra XUV400, to over Rs25 lakh for the Hyundai Kona and BYD Atto. On average, the cost of equivalent ICE vehicles is almost 60 per cent of their EV counterparts.

In a revolutionary move, JSW MG Motor India has introduced the concept of Battery-as-a-Service (BaaS) for its EVs. BaaS is a unique financial solution that allows the EV buyer to pay battery rental per kilometre driven. In this scheme, the customer pays for the vehicle without the inclusion of the battery price, which then vastly reduces their initial investment in the EV purchase. Subsequently, the customer pays a nominal fee per kilometre for battery usage.

BaaS allows users to subscribe to the battery service instead of purchasing and owning the battery. Currently, there is a solution in the market that provides this facility in the form of battery-swapping stations. For two-wheelers and three-wheelers, there are established stations to exchange drained batteries for fully charged ones. This solves the need for owning or maintaining batteries and also alleviates range anxiety issues. It is a wholly beneficial service for commercial utility in fleet ownership.

MG’s BaaS programme, however, provides the buyer with an opportunity to pay as per usage for the battery, along with some additional costs for charging the battery, making it essentially equivalent to refuelling ICE vehicles. Initially introduced as part of the launch of Windsor, the BaaS programme has been extended to MG’s ZS and Comet EV as well.

Satinder Singh Bajwa, Chief Commercial Officer, JSW MG Motor India, said: “With BaaS, we have created a platform for easy ownership, making our EVs more accessible than ever. Given the strong response to Windsor under the BaaS programme, we are now extending its benefits to our popular EV models, the Comet and ZS. I am confident that this unique ownership model will further boost EV adoption in the country.”

EV Infrastructure

One important priority in ensuring the EV ecosystem remains robust is establishing a stable charging infrastructure. Automotive giants like Tata and Mahindra & Mahindra have taken the initiative to collaborate with associated businesses to enhance connectivity. Similarly, MG Motor has partnered with several large and start-up companies to build and sustain this infrastructure.

They have forged alliances with businesses such as Adani Total Energies Limited (ATEL), BPCL, ChargeZone, Glida, HPCL, Jio-BP, Shell, Statiq, Zeon, and many others to install fast chargers and set up charging stations across the country. eHUB, an MG solution, simplifies the process of locating, reserving, and paying for charging stations. MG’s eHUB app has achieved over 15,000 downloads in less than two months since its launch.

From the perspective of climate change and eco-sustainability, a major concern regarding batteries is their post-life usefulness. Project REVIVE is a pioneering initiative to repurpose used EV batteries in partnership with TERI and Lohum. The project extracts healthy battery components and builds energy solutions for use in schools and community centres.

By extending the lifespan of EV batteries, Project REVIVE reduces waste and provides reliable power to underserved communities. Continuing this momentum, the brand has announced India’s first high-voltage (HV) second-life battery with a homegrown Battery Management System (BMS), in collaboration with Vision Mechatronics as part of REVIVE. This product was showcased at The Battery Show in Greater Noida.

While most companies are trying to make EVs affordable for the Indian consumer, there is also a slow and steady rise in demand for premium EVs among discerning consumers with higher disposable incomes and a preference for eco-friendly products. Meanwhile, the Indian government’s EV scheme aims to drive large investments in manufacturing to offer world-class zero-emission vehicles.

The EV policy reduces the import duty on certain electric cars to 15 per cent from the current 70-100 per cent for 5 years, provided the automaker invests at least Rs4,150 crore ($500 million) in manufacturing within 3 years. Consequently, there has been a surge in premium EV models, including the Kia EV6, Hyundai Ioniq 5, Volvo XC40 Recharge, BMW iX1, and BYD Seal, among others.

With JSW steering its new direction, MG Motor India is looking to target the premium car market in India. Similar to the approach taken by Maruti Suzuki’s Nexa brand, MG is set to launch a range of ‘Select’ stores. This retail chain will serve as an exclusive showroom for its future flagship models, with a strong focus on NEVs. MG Select aims to establish itself as a leading player in this segment by providing an enhanced brand experience for modern customers who desire premium offerings. The Select showroom network is set to open in 2025, with plans to expand across 12 key cities.

The MG Windsor received a tremendous response from customers, securing bookings for 15,176 units within 24 hours, highlighting the demand for innovative, intelligent, and sustainable EVs among Indian consumers. With its systematic plans of partnering with several players in the EV ecosystem, JSW MG Motor India is moving in the right direction towards sustainable mobility.