JSW MG Motor India has partnered with Kotak Mahindra Prime Limited (KMPL) to introduce a revolutionary Battery-As-A-Service (BaaS) ownership program for electric vehicle (EV) customers, making KMPL one of the first auto financiers to support this innovative concept. The collaboration marks a significant step in reducing the upfront cost of electric vehicles, potentially disrupting the Indian EV market.
The BaaS model allows consumers to purchase an electric vehicle without the expensive upfront cost of the battery, which is instead provided through a subscription-based service. This approach reduces the cost of vehicles like the MG Windsor EV, which is priced at Rs 9.99 lakh, undercutting competitors like the Tata Punch EV. The Windsor EV also offers a lifetime warranty on the battery and a 60% assured buyback value after three years for customers who opt for a three-year maintenance plan.
BaaS is a relatively new concept in India, where consumers are traditionally inclined to own assets outright, including vehicle batteries. The subscription model may face resistance, particularly concerning the ongoing fees, which could become a burden over time. Despite these challenges, experts believe that BaaS has the potential to drive greater EV adoption in India, especially as the market continues to evolve.
Gaurav Gupta, Chief Growth Officer at JSW MG Motor India, emphasized that KMPL’s extensive network and dealer partnerships will enhance the penetration of the BaaS model, boosting EV sales. Vyomesh Kapasi, Managing Director and CEO of Kotak Mahindra Prime, expressed confidence that the collaboration would strengthen their finance offerings and support the broader adoption of electric vehicles in India.
