All you Need To Know About BaaS

MG Motor's Battery-as-a-Service (BaaS) program introduces a fresh take on electric vehicle (EV) ownership by targeting one of the biggest concerns for buyers — the high cost of the battery. Instead of purchasing the battery upfront along with the car, MG allows customers to buy the EV separately and rent the battery through a third-party financer. 

The user then pays for the battery usage based on how many kilometers they drive.

It's important to note that BaaS is different from MG’s “Subscribe” program. While both aim to provide flexibility, the Subscribe model is more like a full-fledged vehicle rental service.

Upfront Costs and Base Per-Kilometer Charges

The BaaS model was first rolled out with the MG Windsor EV and has since been extended to other models like the compact MG Comet EV and the mid-size MG ZS EV. This shows MG’s broader strategy to make EVs more affordable and accessible across different segments.

Under this scheme, the upfront price of the car is considerably lower since it doesn’t include the battery. Instead, the customer pays a per-kilometer rate to use the battery, and this rate may vary depending on the financing partner.

For example, the MG Windsor EV starts at ₹9.99 lakh without the battery. Higher variants like the Exclusive and Essence trims are priced at ₹10.99 lakh and ₹11.99 lakh respectively. 

The newer Windsor EV PRO is available at ₹12.50 lakh. The battery usage charge is ₹3.5 per kilometer for the standard Windsor EV, and ₹4.5 per kilometer for the Windsor EV PRO.

The MG Comet EV, which is even more affordable, starts at just ₹4.99 lakh. Its Blackstorm edition goes up to ₹7.80 lakh, with a base battery usage charge of ₹2.9 per kilometer. 

The MG ZS EV, a more premium option, is priced at ₹13.99 lakh under BaaS, with a per-kilometer battery charge of ₹4.5.

When looking deeper into MG’s BaaS (Battery-as-a-Service) model, the actual running costs become more apparent — especially once you consider the per-kilometer battery rental rates and the minimum monthly usage conditions set by different financing partners.

One of the more flexible plans comes from VidyutTech. It charges users strictly based on how many kilometers they drive, without any minimum monthly usage requirements. 

So if you don’t use the vehicle at all in a given month, you won’t pay anything for the battery rental — although you may still need to place a security deposit. 

For the MG Windsor EV, VidyutTech charges ₹3.5 per kilometer, making it a true “pay-as-you-go” model.

On the other hand, Bajaj Finance also charges ₹3.5 per kilometer for the Windsor EV, but with a mandatory minimum usage of 1500 kilometers per month. This means even if you drive less, you’re still paying ₹5,250 every month (₹3.5 × 1500 km).

Actual Cost Of Owning A MG EV For A Month

    MG Windsor EV with VidyutTech (1500 km/month usage)

• Battery cost: ₹3.5/km * 1500 km = ₹5,250 (VidyutTech charges on actual usage).
• Charging cost: ₹1/km * 1500 km = ₹1,500.
• Total running cost (battery + charging): ₹6,750.
   
•  MG Windsor EV with Bajaj Finance (1000 km/month usage)
• Battery cost: ₹5,250 (fixed for up to 1500km, as per Bajaj Finance terms).
• Charging cost: ₹1/km * 1000 km = ₹1,000.
• Total running cost (battery + charging): ₹6,250.
• In this scenario, despite driving only 1000 km, the customer pays for 1500 km of battery usage, effectively increasing the per-actual-km cost for the battery.
   
• MG Windsor EV with Herofin Corp (2000 km/month usage)
• Battery cost: ₹5,250 (for the first 1500km) + (500km * ₹3.5) = ₹7,000.
• Charging cost: ₹1/km * 2000 km = ₹2,000.
• Total running cost (battery + charging): ₹9,000.
   
•  MG Windsor EV with Ecofy and Autovert (2000 km/month usage)
• Battery cost: ₹8,700 (for the first 1500km) + (500km * ₹5.8) = ₹11,600.
• Charging cost: ₹1/km * 2000 km = ₹2,000.
• Total running cost (battery + charging): ₹13,600.

Interestingly, Bajaj does not charge extra if you exceed the 1500 km limit — you pay that fixed amount whether you drive more or less.

Herofin Corp takes a similar approach to Bajaj Finance. It also sets a ₹3.5 per kilometer rate with a minimum usage of 1500 kilometers, resulting in the same base monthly cost of ₹5,250. However, there’s a key difference: 

if you drive more than 1500 kilometers in a month, Herofin charges for the extra distance — so you’ll end up paying more if your driving habits exceed the baseline.

For customers who may not qualify for standard financing due to lower credit scores, options like Ecofy and Autovert are available. These plans come with a significantly higher per-kilometer cost of ₹5.8. Like Herofin Corp, they also require a minimum usage of 1500 kilometers per month and charge extra for additional distance. 

This pushes the base monthly cost to ₹8,700 (₹5.8 × 1500 km), with added costs if you drive beyond that.

All of this highlights the importance of carefully reviewing the terms of each financing partner under the BaaS scheme. Depending on your driving habits and budget, the difference in monthly expenses can be substantial.

When Flexibility Becomes a Fixed Cost

These cost breakdowns make it quite clear — while MG’s BaaS model certainly lowers the upfront price of EVs, it can quickly become expensive on a monthly basis, especially if a customer selects a financier with a high per-kilometer rate or ends up driving more than the minimum limit with a clause that charges for extra kilometers.

What’s particularly striking is the illusion of a true “pay-per-usage” model. On the surface, this sounds like you’re only paying for what you use — but that’s not entirely accurate.

 Most BaaS financing partners, including Bajaj Finance, Herofin Corp, Ecofy, and Autovert, require a minimum monthly usage of 1500 kilometers. 

This essentially locks the user into a fixed monthly cost, even if their actual driving falls well below that number. In this context, only VidyutTech offers a genuine usage-based model, where you're charged strictly based on how much you drive.

This is an important detail that many potential buyers might miss. If your monthly usage is modest — say, just 500 to 800 km — you could still be charged for 1500 km, resulting in a higher-than-expected bill. In such cases, the model may not be as cost-effective as it initially appears. 

Another critical factor influencing monthly running costs is your credit score. Ecofy and Autovert are often the only choices available to buyers with lower credit ratings, but they come with a steeper per-kilometer cost of ₹5.8. 

This directly links an individual’s creditworthiness to their monthly financial burden — a reality that somewhat undermines the affordability message of the BaaS scheme. For these customers, owning an EV through BaaS could turn out to be significantly more expensive in the long run.

Beyond the Low Upfront Price

One of the standout benefits of MG’s Battery-as-a-Service program is the lifetime battery warranty with unlimited kilometers. This feature addresses one of the most pressing concerns for EV buyers — the long-term reliability of the battery and the potential costs of replacement, which can often run into lakhs of rupees.

Flexibility to Exit or Buy the Battery: Customers aren’t locked into the BaaS model forever. MG allows you to opt out of the scheme at any point by paying off the remaining battery amount, along with any outstanding balance on the vehicle itself. 

VidyutTech, in particular, offers a well-thought-out structure — after the typical 3 to 5-year financing period, customers can choose to either continue with battery rentals or purchase the battery outright.

Selling the Vehicle: If you choose to sell your MG EV before the BaaS tenure is over, you’re still allowed to do so. However, you’ll need to clear any pending dues for both the vehicle and the battery beforehand.

Assured Buyback Value: MG has also added a safety net in the form of an assured buyback plan. For customers enrolled under the MG Shield program, the company guarantees up to 60% resale value after three years of ownership. This helps reduce uncertainty around EV resale prices — a sticking point for many first-time EV buyers — and provides a structured exit route.

Repossession Clause: It's important to note that missing monthly payments for battery rental or per-kilometer usage can lead to repossession of the vehicle. In such cases, the financer will calculate depreciation and outstanding dues before issuing any refund. This makes it crucial for users to stay financially disciplined throughout the rental period.

Conclusion

MG’s Battery-as-a-Service (BaaS) model is more than a sales strategy — it’s a fundamental shift in how electric mobility is made accessible. By unbundling the battery cost, MG directly tackles the number one barrier to EV adoption: the high upfront purchase price. 

The result? EVs like the MG Comet and MG Windsor are now priced competitively — and sometimes even lower — than many traditional petrol or diesel cars.

The benefit doesn’t end at the showroom. The lifetime battery warranty and flexible financial structure help ease long-term ownership concerns. Customers can walk into an EV purchase with far fewer anxieties about depreciation, battery failure, or future resale value. 

Add to that the flexibility to opt out, buy the battery, or utilize a guaranteed buyback option, and the BaaS model starts to feel like a genuine customer-centric solution.

However, while the upfront cost is significantly reduced, the real cost of ownership under BaaS needs to be crystal clear to avoid any unpleasant financial surprises.

The final monthly expenditure isn’t just about the EMI on the car. It includes battery rental charges and charging expenses — and those vary significantly depending on the financing partner and the customer’s usage patterns. 

For instance, many financiers impose a 1500 km minimum monthly usage, meaning even low-mileage drivers may have to pay for kilometers they don’t use. This can distort the idea of a true “pay-per-use” model.

Source- 1, 2, 3, 4