MG recently launched the Windsor EV with the industry-first Baas (Battery-as-a-Service) to make the initial pricing more attractive
Ever since MG announced the prices of the Windsor EV with and without BaaS, it is understandable to be a bit confused about which option suits you the best. The prices for the Windsor EV start at Rs 9.99 lakh, ex-showroom (without battery) and Rs 13.50 lakh, ex-showroom (with the battery). In the former instance, buyers will need to pay Rs 3.5 per km of usage every month as the battery rental. However, the catch is that you will need to pay a minimum amount equivalent to driving 1,500 km regardless of whether you drive the EV or not. If this model doesn’t make sense for you, there are even more packages to choose from. For now, let us try to look at the advantages and disadvantages of BaaS.
Why Should You Buy MG Windsor EV with BaaS?
- Affordability – The very inception of this service is to ensure that the initial costs of EVs get lower. We know that lack of affordability is a huge barrier for many potential car buyers to go for electric cars. In comparison to a similar ICE model, the prices of the electric version are almost 50% higher. Hence, people struggle get behind the idea. However, with BaaS, you don’t need to pay for the price of the battery up front. Interestingly, an EV battery costs around 40% of the total price of an electric car. Hence, a huge amount of money is already saved with BaaS.
- Pay as per Usage – In the case of the MG Windsor EV, the Chinese-owned British carmaker charges Rs 3.5 per km as a battery rental. This ensures that you pay only for what you use. While there are some minimum monthly charges, you can discuss the plans with the MG staff to know the best option for you.
- Ownership Costs – We know that most car buyers take loans to finance new cars. When the initial price is lower due to not having to pay for the battery, you end up saving a lot of money on the interest for the loans. Since the loan amount is considerably lower, the EMIs and overall interest become attractive.
- Unlimited Warranty – MG is offering an unlimited warranty on the Windsor EV battery if you take up BaaS. That is a huge deal since most people worry about having to pay an enormous cost to replace the battery after years of ownership. In fact, the entire savings due to low running costs can go down the drain if you have to purchase a battery once again. But unlike other carmakers who offer 8-year / 1,50,000 km warranty on EV batteries, MG is offering an unlimited warranty as long as you don’t sell it.
- Attractive Buyback Offer – To make things even more enticing for the buyers, MG is offering a great opportunity where owners can sell the EV back to MG after 3 years of ownership and still get a value worth 60% of the initial cost of the EV. That makes the entire deal even sweeter.
Why Should You Buy MG Windsor EV at Full Price?
- Avoid Complications – Even though the overall pricing strategy is quite intriguing, it is possible that many people won’t understand the calculations with tons of conditions. For instance, the minimum monthly rent even if you don’t use the vehicle can put some people off. Hence, if you want to prevent all that complexity, you can purchase the EV with the battery up front.
- Manage Finances – Most people buy cars on loans. However, with BaaS, you will need to plan you finances in such a manner that you will have to pay for the EMI of the vehicle, as well as the monthly battery rental. In essence, you will pay two EMIs. It is not bad, but concrete planning is needed. However, you can avoid that if you purchase the EV at full price. Then, you just need to take care of the bank EMI.
- No Minimum Monthly Rents – Another key component of owning the EV and the battery together is that if you don’t use the car at all in one month, you are not bound by minimum monthly rents. That makes it sound much more reasonable.
My View
I have tried to provide various aspects for both scenarios. Depending on your usage and preferences, you can pick the option which makes better sense for you. I must mention that there is no right or wrong decision. Everything is subjective. Still, I wanted to make sure that you know all facets of these offers before you make up your mind. Hopefully, after reading this, things will become clearer and you know which route to take. I am curious to see how well customers react to BaaS in general.
Also Read: Explained – MG Windsor’s Industry-First Purchase Model
