In this State of the Economy podcast, S Ronendra Singh speaks to Gaurav Gupta, Chief Growth Officer at JSW MG Motor India, about the company’s Battery as a Service (BaaS) model, a new approach aimed at accelerating electric vehicle (EV) adoption in India. 

Launched with the MG Windsor, a crossover utility vehicle (CUV), BaaS is designed to make EVs more affordable by separating the cost of the battery from the vehicle. 

The MG Windsor comes at a price of ₹9.99 lakh, with customers paying an additional ₹3.5 per kilometre for battery usage, much like paying for fuel in traditional internal combustion engine (ICE) vehicles. 

 The goal is to reduce the financial burden on buyers, who can now enjoy the benefits of an EV without the heavy upfront costs. Gaurav Gupta highlights this shift: “The battery constitutes about 40% of the EV’s cost. By shifting this cost to a usage-based model, we are democratising access to electric vehicles.” 

The introduction of BaaS allows customers to rent the battery instead of purchasing it upfront, paying only for the energy they consume. This structure makes EV ownership more flexible and affordable. Gupta puts it “This is about freedom—freedom from long-term financial burdens and freedom to only pay for what you use.” The BaaS model is particularly appealing when compared to the monthly costs of owning an ICE vehicle. For instance, driving a conventional car for 1,500 KM per month costs around ₹12,000 (assuming ₹100 per liter for fuel). In contrast, the same distance in an EV under the BaaS model costs approximately ₹7,000, including the battery rental fee and electricity for charging. 

Gupta shares that MG Motor India has received overwhelmingly positive feedback on the BaaS model, especially from first-time buyers and those upgrading from two-wheelers. “We’ve received overwhelmingly positive feedback, and we’re confident that as more customers experience the benefits of this model, adoption rates will rise,” Gupta explains. 

The BaaS model is also set to expand beyond the Windsor to other electric vehicles in MG Motor’s lineup, including the Comet and ZS EV models, a move that promises to further boost EV adoption across India. However, challenges remain, particularly charging infrastructure. 

In the wake of the government’s reduction of subsidies for personal EVs, the private sector is stepping up its role in driving adoption. Gupta is optimistic, believing that as battery prices fall and infrastructure improves, “the economics of EVs will continue to become more favorable.” The recent surge in EV sales, which have grown nearly 100% over the past two years, suggests that the market is ripe for further expansion, although maintaining such rapid growth may become increasingly challenging. 

Listen in to know more. 

(Host: S Ronendra Singh, Producer: Siddharth Mathew Cherian.)

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.

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