MG BaaS sees growing demand from Tier III cities

MG Motor India’s Battery-as-a-Service (Baas) rental scheme is seeing some traction in our market, with the brand claiming that the number of buyers opting for the scheme is increasing, with a surprisingly higher adoption rate from Tier-III markets. The rental scheme allows buyers to purchase MG EVs at a much lower initial cost.

1. Increasing BaaS demand from Tier III cities
2. 15 percent of MG EV buyers opted for BaaS

Demand for MG Windsor, Comet, ZS EV on BaaS rising

Number of financiers increased from 4 to 6 

Speaking to the media, MG Motor India confirmed that one of the reasons for the greater adoption of the rental scheme is rising demand from Tier-III cities. Around 15 percent of MG EV buyers – the portfolio currently includes the Comet, ZS EV and Windsor – have opted for BaaS. In fact, in February, we reported that 15 percent of MG Windsor buyers had chosen the BaaS programme.

In order to further increase the number of owners opting for the rental scheme, MG has also increased the number of financiers to a total of 6 – plans from Bajaj Finance Limited, Herofin Corp, VidyutTech Services Private Limited and Ecofy/Autovert Technologies Private Limited were available at the launch of the programme in September 2024. Now, schemes from IDFC First Bank and Kotak Mahindra Prime are also on offer. The brand also says that clearer communication from the dealers has also helped educate customers better, providing opportunities for greater BaaS sales.

​MG EV BaaS buyers pay about 40 percent less initially

Based on the table above, one can see that those who opt for the BaaS programme pay about 40 percent less initially and then finance the battery separately. Similar to a typical car loan, the battery cost is paid in monthly instalments. As per the agreement with the financiers, owners might have to pay either a predetermined amount or an amount based on actual usage (per kilometre) for up to 8 years.

IMAGE SOURCE: GA.Automotive via YouTube