Vidyut and JSW MG Motor India Offer a Unique Electric Car Ownership Package

Nitin Konde, Apoorva Bajj

Oct 1, 2024 — 3 min read

Vidyut and JSW MG Motor India Offer a Unique Electric Car Ownership Package

The battery-as-a-service (BaaS) portfolio of Bengaluru-based full-stack EV ecosystem startup Vidyut (VT) has been extended to the passenger automobile market.

The firm is offering a Battery-as-a-Service (BaaS) financing option for passenger cars, such as the MG Comet EV, MG Windsor EV, and MG ZS EV, in collaboration with JSW and MG Motor India. While most people view batteries as assets, Vidyut views them as fuel. Given that the car is not in use, why should one pay for it?

According to Xitij Kothi, co-founder of Vidyut, "This very question inspired us to introduce Battery-as-a-Service (BaaS) into the EV ecosystem."

Allowing Clients to Lease the Battery

Customers can rent the battery under the BaaS scheme for a minimum charge that starts at INR 2.5 per kilometre, depending on usage. By renting batteries, EV owners can drastically cut their operating costs compared to conventional internal combustion engine (ICE) vehicles—up to 40%.

Vidyut has made great progress in developing this funding mechanism for commercial applications since its founding in 2021. With JSW MG Motor India, the business is now thrilled to bring the same degree of innovation to personal four-wheelers, according to Kothi. The company wants to enable people to embrace sustainable transportation without the financial burden that usually goes along with it by making EV ownership affordable and accessible for all, Kothi revealed further.

How Does the Baas Model Work?

The Battery-as-a-Service (BaaS) business model considerably lowers the initial acquisition cost of an electric vehicle (EV) by allowing consumers to pay only for the vehicle (without the battery), in contrast to standard ICE vehicles that have continuous gasoline costs involved. With this model, owning an EV is more convenient and economical while also reducing driving costs.

Vidyut will give clients the choice to either continue with the battery rental programme or buy the battery altogether when the vehicle's finance term (without the battery) has ended, which could be anywhere from three to five years, depending on the model of the vehicle. Furthermore, car owners can pay the battery's residual value to withdraw from the programme whenever they like.

In order to increase the accessibility of passenger EVs and accelerate EV adoption in India, JSW MG Motor India values Vidyut's approach to this innovative and industry-first ownership programme.

According to Gaurav Gupta, Chief Growth Officer of JSW MG Motor India, the company is thrilled to work with Vidyut as one of its finance partners to launch BaaS, which will help remove the initial investment barrier to electric vehicle ownership while drastically cutting operating costs.

JSW MG Motor India is optimistic that this model will encourage more prospective EV buyers to upgrade to an EV lifestyle by offering this creative plan. Gupta stated that MG EV buyers can also take advantage of the guaranteed 60% buyback value following three years of ownership, providing a smooth and secure ownership experience.