The story is based on an interview conducted by Arpit Mahendra.
MG Motor India has been in the news since the introduction of its latest Battery as a Service (BaaS) model. It was first introduced with the Windsor EV and soon made its way to other BEVs in the company’s stable - including the MG Comet and ZS EV. This model basically allows customers to pay for battery usage based on the distance traveled, effectively eliminating the upfront battery cost and making EVs more affordable. In a conversation with TOI Auto, Gaurav Gupta , Chief Growth Officer at JSW MG Motor India, spoke at length about the advantages of this model and its potential to boost EV adoption across India.
When asked about the potential impact of BaaS, Gupta explained that affordability remains a major barrier to EV adoption in India. "There are four key enablers to increase EV adoption," he said. "The first is acquisition cost. Typically, 30-35% of a car's price is attributed to the battery alone, and most customers don't fully utilize their investment in the battery."
Gupta further explained that with the BaaS model, MG is separating the cost of the vehicle and the battery, offering a more flexible payment structure. "The way you pay for petrol or diesel is the same way you should think about paying for a battery—based on how much you use," he said. This approach, according to Gupta, can reduce the upfront cost of an EV and make it more affordable for a broader range of buyers. "If it was a gimmick, competitors wouldn't consider adopting the idea," he stressed as he said that BaaS is the future.
He shared an example, saying, “A customer with a budget of Rs 10 lakh can now potentially afford a Rs 14 lakh EV, thanks to BaaS, which lowers the upfront cost by removing the battery's cost from the equation. It’s similar to the pay-as-you-go model for fuel."
In addition to the cost benefits, Gupta stressed that BaaS also addresses another major barrier to EV adoption: charging infrastructure . "While studies show that 80-90% of EV owners charge at home, the lack of confidence in public charging infrastructure remains a challenge," he said. To counter this, MG has launched the eHub charging network , designed to reduce concerns about finding available chargers. He explained that eHub is akin to a "Zomato for chargers," where drivers can locate, pre-book, and even pay for charging slots through a single app. He added that MG's charging infrastructure is open not just to its own customers but also to other EV brands.
MG is also offering a lifetime battery warranty for the Windsor, which he believes will further dispel concerns about battery longevity. "People often ask, 'What happens after eight years?' We’re confident that the battery will outlive the car in almost all cases," he said.
BaaS subscription model explained:
Gaurav Gupta explained how MG Motor’s Battery as a Service (BaaS) model is set to reshape EV ownership. He gave an example, “If you buy the MG Windsor for Rs 10 lakh and opt for the BaaS program, your EMI for three years is around Rs 25,000 per month. Add a battery rental cost of Rs 3.5 per kilometre and Rs 1 per kilometer for charging, and if you drive 1,500 kilometers a month, your total monthly cost, including EMI, comes to around Rs 32,000.”
He went on to compare the cost with ICE vehicles by stating “In comparison, a petrol or diesel car for the same price would cost Rs 12,000 to Rs 14,000 a month just for fuel. So, EV running costs are half of traditional fuel vehicles.”
“Plus, after three years, under the buyback program , you can return the car and get back 60 percent of its value (about Rs 8.4 lakhs). After adjusting for battery rental and usage, you’d still recover Rs 5-5.5 lakhs.” he added.
Looking to the future, Gupta believes that the BaaS model will play a crucial role in accelerating EV adoption, especially as more mainstream financiers come on board. "Our thought process is that BaaS will start slowly but pick up momentum as more financial institutions, customers, and even other manufacturers start to understand its potential," he said.
MG Motor India has been in the news since the introduction of its latest Battery as a Service (BaaS) model. It was first introduced with the Windsor EV and soon made its way to other BEVs in the company’s stable - including the MG Comet and ZS EV. This model basically allows customers to pay for battery usage based on the distance traveled, effectively eliminating the upfront battery cost and making EVs more affordable. In a conversation with TOI Auto, Gaurav Gupta , Chief Growth Officer at JSW MG Motor India, spoke at length about the advantages of this model and its potential to boost EV adoption across India.
When asked about the potential impact of BaaS, Gupta explained that affordability remains a major barrier to EV adoption in India. "There are four key enablers to increase EV adoption," he said. "The first is acquisition cost. Typically, 30-35% of a car's price is attributed to the battery alone, and most customers don't fully utilize their investment in the battery."
Gupta further explained that with the BaaS model, MG is separating the cost of the vehicle and the battery, offering a more flexible payment structure. "The way you pay for petrol or diesel is the same way you should think about paying for a battery—based on how much you use," he said. This approach, according to Gupta, can reduce the upfront cost of an EV and make it more affordable for a broader range of buyers. "If it was a gimmick, competitors wouldn't consider adopting the idea," he stressed as he said that BaaS is the future.
He shared an example, saying, “A customer with a budget of Rs 10 lakh can now potentially afford a Rs 14 lakh EV, thanks to BaaS, which lowers the upfront cost by removing the battery's cost from the equation. It’s similar to the pay-as-you-go model for fuel."
In addition to the cost benefits, Gupta stressed that BaaS also addresses another major barrier to EV adoption: charging infrastructure . "While studies show that 80-90% of EV owners charge at home, the lack of confidence in public charging infrastructure remains a challenge," he said. To counter this, MG has launched the eHub charging network , designed to reduce concerns about finding available chargers. He explained that eHub is akin to a "Zomato for chargers," where drivers can locate, pre-book, and even pay for charging slots through a single app. He added that MG's charging infrastructure is open not just to its own customers but also to other EV brands.
MG is also offering a lifetime battery warranty for the Windsor, which he believes will further dispel concerns about battery longevity. "People often ask, 'What happens after eight years?' We’re confident that the battery will outlive the car in almost all cases," he said.
BaaS subscription model explained:
Gaurav Gupta explained how MG Motor’s Battery as a Service (BaaS) model is set to reshape EV ownership. He gave an example, “If you buy the MG Windsor for Rs 10 lakh and opt for the BaaS program, your EMI for three years is around Rs 25,000 per month. Add a battery rental cost of Rs 3.5 per kilometre and Rs 1 per kilometer for charging, and if you drive 1,500 kilometers a month, your total monthly cost, including EMI, comes to around Rs 32,000.”
He went on to compare the cost with ICE vehicles by stating “In comparison, a petrol or diesel car for the same price would cost Rs 12,000 to Rs 14,000 a month just for fuel. So, EV running costs are half of traditional fuel vehicles.”
“Plus, after three years, under the buyback program , you can return the car and get back 60 percent of its value (about Rs 8.4 lakhs). After adjusting for battery rental and usage, you’d still recover Rs 5-5.5 lakhs.” he added.
Looking to the future, Gupta believes that the BaaS model will play a crucial role in accelerating EV adoption, especially as more mainstream financiers come on board. "Our thought process is that BaaS will start slowly but pick up momentum as more financial institutions, customers, and even other manufacturers start to understand its potential," he said.
You may also like
Reverse Flipping: Now, Mensa Brands Sets Sight On India Return
Vicky Kaushal's Karwa Chauth Vrat For Katrina Kaif: Men Breaking Stereotypes
"He was a very, very close family friend": Arbaaz Khan breaks silence on Baba Siddique's death
Maharashtra: Girl was raped at night, brother...
Coaching Liverpool as decisions made over Darwin Nunez and Federico Chiesa for Chelsea game
