An electric vehicle under Rs 5 lakh! MG Comet’s bold battery rental strategy for India explained

JSW MG Motor has taken an bold step into the electric vehicle (EV) market by launching the Comet Mini at an entry price of Rs 4.99 lakh. The cost reduction is part of its battery-as-a-service (BaaS) program, which separates the battery from the car’s upfront cost, offering customers the flexibility to pay for battery usage based on kilometers driven.

The company, a joint venture between JSW Group and China’s SAIC Motor, extended the BaaS program to both the Comet Mini and the ZS EV. The move slashes the starting price by Rs 2 lakh for the Comet and Rs 4.99 lakh for the ZS EV. Buyers opting for this model will pay a battery rental, with rates starting at Rs 2.5 per kilometer for the Comet and Rs 4.5 per kilometer for the ZS EV. Additionally, the charging cost, which is approximately Rs 1 per kilometer, will be borne by the user.

The option to purchase the car with the battery bundled into the price remains. Customers are also offered a 60% buyback value after three years of ownership, adding further appeal to the new pricing model.

The BaaS program was first introduced with the Windsor EV, priced at Rs 9.99 lakh, with a battery rental of Rs 3.5 per kilometer. However, buyers must commit to a minimum monthly battery payment equivalent to driving 1,500 kilometers, costing Rs 5,250. This model is similar to a mobile data plan where users pay for any extra usage beyond the allocated limit, in this case, the 1,500 km threshold. The additional payments will be managed by JSW MG Motor’s banking partners such as Bajaj Finserv and Hero Fincorp.

Satinder Singh Bajwa, Chief Commercial Officer at JSW MG Motor India, emphasized the accessibility this model provides, stating, "With BaaS, we have created a platform for easy ownership, making our EVs more accessible than ever. I am confident this unique ownership model will further boost EV adoption in the country."

While the MG Comet is priced under Rs 5 lakh, it’s not the first electric vehicle in India to achieve this milestone. The Reva, launched in 1994 at Rs 2.88 lakh, holds that distinction. The Reva was manufactured by Chetan Maini’s Reva Electric Car Co., which was later acquired by Mahindra & Mahindra in 2010. Mahindra followed up with the e2O in 2013, priced between Rs 6.5 lakh and Rs 8.5 lakh, though it is now discontinued.

The Comet, a two-door urban EV, has a range of 230 kilometers per charge and can seat four people, though space is tight. Meanwhile, the ZS EV, a 4.3-meter SUV with a range of 461 kilometers per charge, is positioned to compete with Tata’s Curvv and BYD’s Seal in the growing Indian EV market.