MG Windsor Battery rental (BaaS) explained

MG launched the Windsor last week as its third EV in our market, starting at an aggressive price of Rs 9.99 lakh (ex-showroom). However, this price excludes the battery, which is available on a rental basis at Rs 3.5 per km. This first-of-its-kind ownership model aims to reduce the upfront acquisition cost of an EV, and MG claims it will also lower running costs over a certain period of ownership

However, there has been a lot of uncertainty and confusion around the BaaS (Battery-as-a-Service) model. Hence, we are addressing some of the most important queries here.

1) What is Battery-as-a-Service or BaaS?

MG says BaaS is a battery rental scheme, but it essentially is a finance scheme backed by four specific third-party financiers. The customer pays for the vehicle upfront – or through a loan – but they have to pay for the battery separately on a rental basis.

2) What is the cost of the BaaS program?

Let’s explore 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 he drives, meaning there are no additional charges for any extra kilometers driven.

Herofin Corp – The model here is similar to the one above. However, there will be additional charges for any distance driven beyond 1500km.

Ecofy and Autovert – Customers with a low credit score can opt for this financing option. MG hasn’t revealed the exact interest rate, but the cost is higher at Rs 5.8 per km. This option also requires a minimum monthly running of 1500km, and there will be additional charges for crossing that limit.

VidyutTech – Lastly, the simplest financing model is offered by VidyutTech, where you only pay as per your usage. There are no minimum monthly running requirements or additional charges. You pay Rs 3.5 per km, which means if there’s no usage, there are no expenses. However, a certain security deposit will be required.

So, for the first two options, you pay a minimum monthly charge of Rs 5,250 (3.5 x 1,500), plus any additional charges for extra distance. In the case of Ecofy and Autovert, the minimum monthly charge amounts to Rs 8,700 (5.8 x 1,500).

3) How will MG keep track of the usage and kms driven?

MG will have telematics devices istalled in the vehicle to calculate the exact distance a customer drives each month.

4) Can one opt for a financier outside the four listed ones?

No, the car can only be financed as a complete package through one of the partner tie-ups. It’s also important to note that cross-financing – financing the battery and the car separately – will not be possible. The interest rate for financing the car will depend on the individual's credit score and other related factors.

5) Can one buy the Windsor without BaaS?

Yes, the Windsor will be available for purchase as a complete package, with prices inclusive of the battery. We have been informed that the full ex-showroom price of the Windsor will be announced later this week. Here again, the entire car can be financed just like any regular vehicle.

6) Is the cost of charging over and above the battery rental?

Yes, charging costs will be in addition to the battery rental cost. Notably, MG is waiving the charging fees for the first year when using a public charger. Customers simply need to route the process through the MG eHUB mobile application, which lists all public charging stations, and the amount will be billed directly to the company.

7) What happens if one stops paying the battery rental?

If you have fully paid for the car but have stopped paying the monthly battery rental or usage fees, the financiers will repossess the vehicle and refund an amount that accounts for vehicle depreciation during that period, as well as any outstanding battery rental fees.

8) Can one stop the BaaS program and retain the car?

In case a customer wants to opt out of the BaaS program, he/she can pay the outstanding amount for the battery as per the contract, along with any remaining balance for the vehicle, to retain the complete car.

9) Can one return the car to MG during the rental scheme?

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 buyback value will depend on the condition of the car.

10) What happens if the battery is damaged or stops working?

MG is offering a lifetime warranty for the battery with unlimited kilometres, meaning any malfunction will be covered under the warranty. However, accidental damage to the battery will be covered by insurance, just like with any regular car.

11) Can one sell the car while the rental scheme is ongoing?

If customers want to sell the car before the plan's tenure is over, they will have to repay any outstanding amounts and the balance amount for both the vehicle and the battery.

12) How much does one save when opting for BaaS program?

If a customer finances both the car and the battery, MG says that he/she 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. With a 5-year plan, the savings are even greater – Rs 4.20 lakh over a compact ICE SUV and Rs 10.17 lakh over a mid-size SUV.

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