(L-R) Xitij Kothi, Co-founder, Vidyut and Gaurav Gupta, CGO, JSW MG Motor India
Vidyut, a Bengaluru-based startup specialising in a full-stack electric vehicle (EV) ecosystem, has partnered with JSW MG Motor India to launch an innovative financing model for passenger cars. This collaboration introduces a battery-as-a-service (BaaS) program for popular EV models such as the MG Comet EV, MG Windsor EV, and MG ZS EV, with the goal of making electric vehicles more accessible and affordable for consumers.
The new BaaS model offers customers the option to rent the battery at a minimal cost of Rs 2.5 per kilometre based on usage, reducing overall running costs by 40 per cent compared to traditional internal combustion engine (ICE) vehicles. This initiative significantly lowers the upfront cost of EV ownership by excluding the cost of the battery from the vehicle purchase, making the transition to sustainable mobility easier and more affordable.
In contrast to conventional ICE vehicles, which come with ongoing fuel expenses, the BaaS model allows EV owners to pay only for battery usage when the car is on the road. The flexibility of this model also extends beyond the financing tenure of 3-5 years (depending on the vehicle). Customers can choose to continue renting the battery or purchase it outright. There is also an option to exit the program anytime by paying the residual battery value.
Innovative approach to EV ownership
Xitij Kothi, co-founder of Vidyut, explained the thought process behind this innovation, stating, “People think of the battery as an asset, but we think of the battery as a fuel. So why should you pay for it when the vehicle is not on the road? This very question inspired us to introduce battery-as-a-service (BaaS) into the EV ecosystem. Since its inception in 2021, Vidyut has made significant strides in pioneering this financing model for commercial applications. And now we are excited to extend that same level of innovation to personal four-wheeler vehicles with JSW MG Motor India.”
“Our goal is to make EV ownership not just accessible but also cost-efficient for everyone, empowering individuals to embrace sustainable mobility without the financial burden that traditionally accompanies it,” he added.
JSW MG Motor’s commitment to EV adoption
Gaurav Gupta, chief growth officer at JSW MG Motor India, expressed enthusiasm about the partnership, saying, “As a young startup, we appreciate Vidyut’s approach towards this unique and industry-first ownership program to make passenger EVs more accessible and further boost EV adoption in India. And we are delighted to partner with Vidyut, as one of our financing partners, to introduce BaaS, to address the barrier of incremental upfront cost of owning an EV and reducing the overall running cost significantly.”
“With this innovative program, we are confident that this model will incentivize more potential EV buyers enabling them to upgrade to an EV lifestyle. Additionally, MG EV customers can also avail the assured 60 per cent buyback value after three years of ownership, reassuring a seamless and confident ownership experience,” Gupta added.
Vidyut expands into used-EV market
In addition to its passenger car innovations, Vidyut has recently ventured into the sale and financing of used EVs, supporting the resale of three-wheeler commercial EVs across Delhi NCR, Bengaluru, and Hyderabad. Vidyut now operates in over 30 cities in India, collaborating with original equipment manufacturer (OEM) partners like Tata Motors, Mahindra, Euler Motors, Piaggio, Greaves, Murugappa Group’s Montra Electric, and Altigreen.
Vidyut has raised $14 million in funding since its inception, led by 3one4 Capital with contributions from both new and existing investors such as Saison Capital, Zephyr Peacock, Force Ventures, Alteria Capital, and Udaan’s co-founder, Sujeet Kumar.
First Published: Sep 30 2024 | 5:11 PM IST
By Companies
Source: Companies