A new electric car is now available in India for less than Rs 5 lakh, but it comes with conditions

JSW MG Motor Pvt. Ltd. has made electric cars more affordable by reducing the upfront cost to below Rs 5 lakh through an innovative approach that separates the battery cost from the vehicle’s total price. This move is part of a joint venture between India’s JSW Group and China’s SAIC Motor Co., which now offers a battery-as-a-service (BaaS) program for its Comet and ZS EV models. As a result, the starting prices have been slashed by Rs 2 lakh and Rs 4.99 lakh, respectively. Under this scheme, customers will pay a battery rental fee based on usage, in addition to the car’s price.

The running cost, estimated at about Rs 1 per kilometer, remains the responsibility of the user. Buyers still have the option to purchase the vehicles with the battery included in the total price, and there’s also an attractive 60% buyback guarantee available after three years of ownership.

JSW MG Motor first launched this BaaS concept with the Windsor EV earlier this month. This model starts at Rs 9.99 lakh with a battery rental cost of Rs 3.5 per kilometer. While this is a pay-as-you-go model, customers must commit to a minimum monthly payment of Rs 5,250, which equates to driving 1,500 kilometers per month.

This battery service model functions similarly to a fixed mobile data plan, where any usage beyond 1,500 km per month is charged at Rs 3.5 per additional kilometer. Financing for this secondary EMI will be managed by JSW MG Motor’s banking partners, including Bajaj Finserv, Hero Fincorp, Vidyut, and Ecofy Autovert. Charging costs, however, remain an additional expense for the user, making the Windsor EV’s running cost about Rs 4.5/km, compared to Rs 8-10/km for a similar-sized 4.3-meter SUV.

Satinder Singh Bajwa, Chief Commercial Officer at JSW MG Motor India, expressed optimism about this model, stating, “With BaaS, we have made EV ownership easier and more accessible, which will undoubtedly encourage wider EV adoption in the country.”

The MG Comet is not the first electric car in India priced below Rs 5 lakh; that title goes to the Reva, which was introduced in 1994 at Rs 2.88 lakh. The Reva, produced by Reva Electric Car Co. led by Chetan Maini, is regarded as a pioneer in India’s electric mobility scene. Mahindra & Mahindra acquired the company in 2010, later introducing the Mahindra e2O in 2013, which offered a 120 km range for Rs 6.5-8.5 lakh.

In contrast, the MG Comet, a compact two-door urban car that can seat four, offers a range of 230 km per charge. The larger MG ZS EV, a 4.3-meter SUV, competes with models like the Tata Curvv and BYD Seal in India’s growing EV market, offering a substantial 461 km range on a single charge.