Recently, MG Motor rocked the industry with the introduction of the Comet EV, the most affordable electric vehicle, priced at Rs 4.99 lakh. Given that MG is offering competitive pricing, it is evident that Tata Motors, the company with the largest market share of electric cars in the nation, may face more difficulties. However, how does the business manage to sell an electric vehicle for so little money, and what is its business plan? We’ll go into more information about it for you right now.
First of all, be aware that MG Motor has introduced its three electric vehicles—the Comet EV, Windsor EV, and ZS EV—in India through a unique battery subscription arrangement, which has allowed for the extremely cheap launch prices of all three vehicles. The unique aspect of this is that the corporation has kept the price of the automobile lower by not including the cost of the battery in these vehicles. The cost of driving the vehicle will be billed to the consumer by the company each kilometer; this will be the battery subscription fee.
The company’s affordable EV for clients in India
In actuality, the battery in an electric car is the most costly component. It is particularly difficult to regulate the price of electric automobiles because the battery accounts for 55–60% of the entire cost of the vehicle. Currently, the largest barrier to the adoption of electric cars is their expensive cost. A subscription plan, which requires buyers to pay only the car’s price at the time of purchase and determines the battery price based on how long the car runs, was introduced by MG to address this issue.
The company’s unique battery plan
Under the ‘Battery as a Service’ plan, or BaaS, the company has introduced the Comet EV, Windsor EV, and ZS EV. This implies that the purchaser will only be required to pay the car’s total price in one lump sum. We would like to inform you that the MG Comet EV’s starting ex-showroom pricing remains at Rs 4.99 lakh. Battery rental will cost Rs 2.5 per kilometer at the same time. The MG ZS EV’s starting ex-showroom pricing is set at Rs 13.99 lakh, and a fixed battery rental fee of Rs 4.5 per kilometer is also included. At the same time, MG Windsor was introduced for Rs.
Lifetime Protection and Guaranteed Purchase
For its initial customers, MG Motors is also providing a lifetime warranty on its electric vehicles. In addition, all three automobiles will receive a complimentary one-year battery charge service. But the business has also established some guidelines for this. According to the corporation, customers can sell their MG automobile back to them under the terms of the BaaS plan after three years of ownership. The business will cover 60% of the car’s worth in exchange for this.
What is the price to run a million kilometers?
The cost of operating the car that was purchased under the new plan is now the most crucial factor. Let us inform you that the customer will have to pay the charging cost according to the tariff rate after the first year of free public charging on these MG electric cars. Regarding the Comet EV, you will be required to pay a cost of Rs 2,50,000 under BaaS if you drive it for one million kilometers at a rate of Rs 2.5 per kilometer. That means you will have spent a total of Rs 7,50,000 on your Comet EV after 1 lakh kilometers. When the Comet EV’s charging expenses are taken into account, the overall ownership cost on.
