JSW MG Motor India on Wednesday launched its third electric car in the form of the Windsor EV. And while the MG Windsor EV is unique in its own right - it is a crossover, the purchase plans available is also a first for any manufacturer in the Indian automotive market. The Windsor EV is priced at ₹9.99 lakh (introductory) but this is only when you subscribe additionally for the battery pack which is charged at ₹3.50 per kilometre driven. This is what MG calls its BaaS program or Battery as a Service.

At present, when one goes out to buy an electric car, the unit is purchased exactly like any other car, regardless of powertrain. The ex-showroom price is for the vehicle as well as battery combined, plus taxes and registration fees. With the Windsor EV, this changes. While the EV can also be purchased as a whole and ex-showroom prices under this conventional purchase model will be known later this month, the company is also offering the vehicle at ₹9.99 lakh plus price-per-kilometre driven for the battery. And this second part is additional.

What is MG BaaS program?

MG says it is eliminating the price of a battery inside the Windsor EV under its BaaS program. If someone opts to purchase the vehicle through this model, he or she has to pay the upfront cost for the vehicle minus the battery pack. The battery pack itself will essentially come under an additional customised ‘pay-per-kilometre driven’ model.

A number of finance partners have been roped in to make MG BaaS program possible and while exact details of  all available subscription plans have not yet been revealed, the company says Windsor can be purchased at ₹9.99 lakh at present with an additional ₹3.50 per kilometre driven for the battery itself. This is only one of the several promised customised plans and what this allows for, basically, is for a person with a high daily or monthly mileage paying for the distance driven and for someone who only drives occasionally paying comparatively lesser.

For purpose of explaining, this is also comparable to purchasing a car with a petrol-powered engine and then paying for the petrol tank and petrol itself. In the case of BaaS, an owner has to pay ₹3.50 per kilometre for the plan known as of now, plus cost of charging which, MG claims, will come to ₹1 per kilometre. It is claimed that this not only allows for a lower running cost vis-a-vis an engine-powered model but also a lower acquisition price at the time of purchase at the showroom, again when pitted against a relevant model with an engine.

Why has MG introduced BaaS program?

Company officials highlight that the BaaS is a breakthrough program aimed at creating a price parity between an electric car and a comparable model with an internal combustion engine. At present, the difference between an EV and its engine twin is cited by many as a key reason for not going electric.

Will MG introduce BaaS to Comet EV and ZS EV too?

At present, BaaS is only applicable to Windsor EV and JSW MG Motor India officials are keen to examine the response received from potential buyers. As such, it won't be extended to Comet EV and ZS EV at present although the possibility to incorporate it for these models in the future remains.

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