Tata Nexon EV may get BaaS option – MG Windsor Effect

Tata Motors’ BaaS (Battery as a Service) model will allow Nexon EV, Punch EV, Tiago EV, Tigor EV and Curvv EV to quote lower Ex-sh prices

Today, there are more electric vehicles to choose from than just a few years ago. Additionally, there are now more purchasing options, further accelerating the adoption of electric vehicles. The new BaaS plan launched by MG Motor is more attractive to buyers with its prepaid Ex-sh price significantly reduced.

In a bid to retain its market share in the electric vehicle segment and offer significantly reduced prices for the Ex-sh, Tata Motors is reportedly working towards introducing a BaaS model in its electric lineup. Once Tata’s BaaS plan is launched, it may be applicable to Nexon EV, Punch EV, Tiago EV, Tigor EV and the recently launched Curvv EV.

Tata Nexon EV BaaS

Tata Motors, India’s leading electric vehicle maker, leads the field with about 65% market share. However, sales in August 2024 fell by 14.57% year-on-year. According to reports, the company is currently considering launching its own BaaS plan to significantly reduce the price of Ex-sh. The launch schedule is still unknown.

JSW MG Motor India is the first company in India to launch BaaS (Battery as a Service) program. JSW MG Motor India redefined electric vehicle pricing starting with Windsor EV and then expanded its BaaS model to include Comet EV and ZS EV.

By offering battery leasing, MG’s Ex-sh is priced significantly lower than a typical electric car (with the battery included in the package as part of the title). Mahindra has taken note of this and is offering a BaaS model with its newly launched Zeo commercial 4W pickup truck. Notably, Mahindra is yet to announce a BaaS model for its electric offering in the photovoltaic segment, the XUV400.

As of now, Tata’s electric vehicle portfolio starts at Rs 7.99 lakh (excluding taxes) for the Tiago EV, Rs 9.99 lakh (excluding taxes) for the Punch EV and Rs 12.49 lakh (excluding taxes) for the Nexon EV and Tigor EV ), starting from Rs 17.49. Curvv EV of one lakh rupees (Ex-sh). We expect Tata to reduce prepaid Ex-sh prices by about 25-30% and quote battery rentals at Rs 2.5-3.5 per km.

How will BaaS help?

If the Ex-sh price of BaaS drops by around 30% as per reports, we expect Tiago EV to start at around Rs 5.60 Lakh (Ex-sh + lease), Punch EV at Rs 7 Lakh (Ex-sh + lease), Tigor EV and Nexon EV starts at Rs 8.75 lakh (Ex-sh + lease) and Curvv EV starts at Rs 12.25 lakh (Ex-sh + lease).

If we take the MG Windsor EV with BaaS and the Tata Curvv EV without BaaS, there is a difference of Rs 7.50 lakh in the upfront Ex-sh price. After saving Rs 7.5 lakh, Windsor EV buyers can cover 2,14,285 km by paying Rs 3.5 per kilometer on battery rental to MG. The lower upfront costs of a BaaS model are very impressive, considering it will likely take most EV buyers more than 10 years to reach that range.

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