Imagine buying an electric car, but the packaging says, “Batteries not included”. That’s what JSW MG Motor India is doing with its latest electric car launch, the MG Windsor EV. The concept of offering battery-as-a-service (BaaS) that JSW MG Motor has introduced with the Windsor EV, effectively brings down the ex-showroom sticker price of the car to just Rs 9.99 lakh, making it compete directly with internal-combustion engine vehicles of the same size at the same price.
Offering BaaS is different from the concept of battery swapping. The MG Windsor EV comes fitted with a fixed 38-kWh battery that provides an effective range of 331 km per charge. In that sense, the battery is included with the car. But you must pay to use that battery separately. Think of it like the mini-bar in your hotel room, if you take a drink out of it, you pay!
In other words, if you bought a petrol or diesel car, you would pay to top up the car with fuel each time. Similarly, JSW MG Motor is asking you to pay for every kilometre you drive, effectively on a pay-as-you-go model. MG has worked out that cost to Rs 3.50 per kilometre (which is still much lower than the typical petrol or diesel equivalent vehicle, which works out to between Rs 6-10 per km running cost).
Also read: MG Windsor EV launched at Rs 9.99 lakh: What’s the catch?
How Does Battery as a Service Work?
With battery as a service, the owner of the car technically does not “own” the battery but is instead leasing it out from the company. When you buy the MG Windsor EV, you sign up for two contracts; one is the cost price of the car (which could be on EMI) and the other is a lease contract where you pay for the battery at the rate of Rs 3.50 per kilometre. You must sign up for a minimum of 1,500 km per month (which is the average running of most cars in large cities), which works out to Rs 5,250 per month.
The car’s first owner also gets the peace of mind of knowing that the battery comes with a lifetime unlimited kilometre warranty. However, if he or she sells the car, the second owner gets a limited warranty of 8 years on the battery on a pro-rata basis (from the date the car was first sold to the first owner). This scheme is clearly designed to get more cars out of the showroom at launch itself but may not be as beneficial to second owners.
The first owner also gets the benefit of free charging for one year at any of MG’s e-Hubs, effectively reducing the cost of running of the car to only the battery subscription price. Charging costs otherwise are about Rs 8-10 per kWh for slow or home charging going up Rs 22 per kWh at fast chargers.
Running Costs with Battery as a Service
The biggest hindrance to buying an electric car so far has been the additional cost one has to pay upfront when compared to an equivalent internal combustion engine (ICE) car. However, by removing the battery costs, JSW MG Motor has effectively equalized the initial costs and ownership experience of an EV with that of an ICE vehicle, while reducing the running costs. Here’s how the MG Windsor EV compares with the Maruti Suzuki Grand Vitara – a vehicle of about the same size. Let’s compare the entry-level variants.
MG Windsor EV vs Maruti Grand Vitara
| Cost item | MG Windsor EV (Excite) | Maruti Grand Vitara (Sigma) |
| Ex-showroom price | Rs 9.99 lakh | Rs. 10.99 lakh |
| Full charge / full tank | Rs 380 per charge (38 kWh) | Rs 4,500 (45 litres petrol) |
| Range / Mileage | 331 Km (claimed) | 872 km (19.38 kmpl x 45 lts) |
| BaaS cost | Rs 3.50 / Km | Nil |
| Running cost / Km | Rs 4.64 per Km | Rs 5.16 per Km |
The above calculations don’t include road tax, registration (free for EVs), and insurance. In addition, ICE vehicles require engine oil and gear oil changes at regular service intervals which EVs don’t, thereby reducing maintenance costs.
Let’s do the same calculation now for the base variant MG Windsor EV vs the base variant Tata Nexon EV, where the battery cost is included in the price of the vehicle. Remember, you are paying more than Rs 2.50 lakh extra for the battery upfront, not including other charges.
MG Windsor EV vs Tata Nexon EV
| Cost item | MG Windsor EV (Excite) | Tata Nexon EV (Creative +) |
| Ex-showroom price | Rs 9.99 lakh | Rs. 12.49 lakh* |
| Full charge | Rs 380 per charge (38 kWh) | Rs 300 per charge (30 kWh) |
| Range | 331 Km (claimed) | 325 Km (claimed) |
| BaaS cost | Rs 3.50 / Km | Included |
| Running cost / Km | Rs 4.64 per Km | Rs 0.92 per Km |
*Tata has just reduced the price of the Nexon EV by Rs 3 lakh.
Given the ex-showroom cost difference, an MG Windsor EV owner can drive 53,879 km before the cost of his/her car matches that of an entry-level Tata Nexon EV, which is seen as the breakeven point. This clearly points to BaaS giving a distinct advantage to overall ownership costs and running costs.
Finally, a pitch for EVs
With such running economics and given how spacious the MG Windsor EV is (with its 604-litre boot and roomy large rear-seat sporting a reclining function), it makes a clear case for itself as a capable alternative to an ICE vehicle, especially for city commuting of up to 1,500 km a month. Also given the running costs and space, it could end up being a favourite among commercial cab/fleet operators as well. Uber has just relaunched its Uber Black service in some cities, running mainly MG ZS EVs, and Windsor EVs could be an affordable alternative. As for personal usage, it makes perfect sense for early bird users looking for a spacious crossover utility vehicle, with low running costs.
