[ferrarirules]

Originally Posted by guptad42

Somebody (a Mckinsey type consultant?) has sold them this BaaS model as a way of making more money on the base case while making it look affordable to buyers (+ a marketing gimmick to generate 9.99L headlines).

This is exactly what I felt. Some "consultant" sold them a story and they bought it.

Originally Posted by Joe367

Why did they limit the battery warranty to the first owner alone if the second owner has to pay the battery subscription amount anyways. It will not help with resale value.

Simple reason because you will pay residual amount for the battery when you will sell the car to second owner. The second owner has no subscription

Originally Posted by roy_libran

As a Tiago EV owner who paid about 11L INR on road Delhi, if I was in the market today, I wouldn't think twice and get the Windsor at almost a similar acquisition price and happily pay the BaaS charge which in my case would have worked out to about Rs. 75000 over a year.

What about insurance for the battery?
What about the time when you want to get rid of the car, you have to residual price of the battery (if any)?
Does RTO allow a RC to have two hypothecations?

Originally Posted by nuew

- EVs will eventually need a battery replacement anyway. It's sensible if it's under company ownership and maintenance and they undertake the replacement. Low mileage users will save quite a bit on that going the BaaS way.

I think you have not gone through the whole thread. The battery is getting financed to the customer. MG has no relation to it. It will be financed to you by 5 different financiers, you will be the owner of the battery. Please read these FAQs here (MG Cloud spotted testing in India. EDIT: Named Windsor)

Originally Posted by sse

Kudos MG for taking the entire discussion away from the car! I read this 24 page thread and have not come across a single discussion on the positives / negatives on the car.

Thanks for sharing this. It shows that the dealership were not even prepared by MG to answer to the customer questions. It couldn't have been worst managed. Atleast get the Sales team on boarded to the idea, make a kit for them, may be a small ppt with scenarios for people to understand.


The more I read about it more I feel, it is a borderline ponzi scheme. Where they are luring the customer with Rs. 9.99 lakh sticker price but as the customer gets into the details. He/She realizes what did they get into. All this to get the headlines like they got on teambhp as well "MG Windsor EV launched at Rs.9.99 lakh".

The biggest challenge MG has gotten themselves into is that they will now have to declare the price of the battery which is a grey area for all the other manufacturers

[PreludeSH]

Would BaaS work if there was no subsidy or discounts on road tax ? Looks like in future more focus will be on public transport for EVs.

[digitalnirvana]

The 9.99L base variant does not even have power foldable ORVMs. I think for most people the base variant would draw people to the showroom but actually the mid variant would be better, and I'm also looking at that. Except for the panoramic glass roof it seems to have all other goodies that are important for a car of this class. My usage is really low approx 35km per day 5 days a week and the first year free charging sweetens the deal, but I'm still trying to work on the maths.

[srh]

As long as the terms and conditions are clearly communicated along with financial obligations for owners, I think this scheme is great for people who have low running.

Between 2 options - buying an ICE vehicle and paying for fuel Vs buying the Windsor and paying per km for battery (with minimum obligation), a lot of people might choose the Windsor considering that it is much better equipped and offers much more space than an ICE car at same price point (9.99L). The Windsor is leagues ahead of versions of the likes of Fronx, Nexon, Sonet, Venue, Punch etc. which might be available at 9.99L

[Rohan.agar]

Originally Posted by mariner80

One advantage I can see is not having to pay 17% road tax on battery cost (assuming they price it away from ex-sh). The disadvantage would be GST on per km charge, uncertainty if they hike the per km charge (not sure why they would do that, since battery is one time cost at production, for which they already calculated a flat 3.5 per km).

Don't think their will be a GST change on per KM. Remember its a consumer loan that we are taking for a battery rather than the rental which MG is calling it. And as we know there is no GST on loan EMI payments.

If I am wrong then paying 18% GST on 3.5 Rs/KM vs 5% GST on Car+Battery cost will be losing deal for a customer.

[Contrapunto]

Originally Posted by sse

Kudos MG for taking the entire discussion away from the car! I read this 24 page thread and have not come across a single discussion on the positives / negatives on the car.

Anyway, I spoke to a confused sales manager in MG, Coimbatore.I managed to extract following details. He needed a week to clarify again, but I have summarised for easier understanding -

An acquaintance of mine just had a somewhat similar conversation with a sales advisor. He fulminated not just about the confounding BaaS scheme, but also about the "auto journalists" who have been singing paens right off the MG briefing sheet in multiple videos.....he had valid points....the auto journalists are supposed to better informed than us right? At least the mainstream journalists are expected to be skeptical and ask the right questions right?


All valid questions. I am afraid that many of these "singing high praises" videos will look a wee bit foolish in just a few months time, unless MG manages to over-communicate with crystal clarity in the next two weeks.

[guptad42]

Originally Posted by GoBabyGo

Hi, any marketing campaign for 3 months or 3 years, will not make BAAS attractive and beneficial for buyers.

I think it can be made to work now, but it needs:

a. a company genuinely interested in achieving high volumes at cut-throat margins.
+
b. a cheap source of long-term funding (e.g. Japanese insurance funds) not the high commercial finance rates charged by NBFCs.
+
c. a highly reliable product (so after-sales or warranty service does not become a huge cost drag)

With these 3 factors + 2 already existing ones (the low 5% GST on EVs+ the low running cost of an EV)

it is now possible to create a model where

• the initial EV purchase price is equal to or lower than a petrol car,
• and the total monthly cost is also lower than a petrol car.

for an EV with real life range of about 300km (approx. 43-45KWH battery) and ~1,000+ km monthly running.

In a few years, even this may not be needed and EVs may fall below the purchase price of ICE cars, but we are not there yet.

[mariner80]

Originally Posted by Rohan.agar

Don't think their will be a GST change on per KM. Remember its a consumer loan

If it was a loan, they could have simply made it a single vehicle loan with single EMI. Then no GST would be applicable. The "rental" talk, combined with mileage based pricing, smells like a lease rental.

Lease rental is only profitable for people who can deduct expenses, like companies/professionals. I am not sure about India specific rules, but usual lease rentals carry sales tax. That would be double whammy as the consumers would have to pay for NBFC profit margin+ GST.

Now, in case of lease, the financier would be the owner of battery pack, and they would certainly expect their assets to be insured by the lessee. Eventually, at the end of lease term, they would transfer the ownership of battery pack to lessee on payment of residual/salvage value.

The more I think about it, the more it feels like a lease rental.

[Dabhi73]

Please let me know if MG has mentioned about how are they going to count the distance. It seems they will fit GPS or other navigation system for this purpose. This will expose their customer's whereabouts and also all his commute which I think is a great threat to privacy. I will be very much sceptical to share this data and that too to Chinese company. I think this is very dangerous.

[MclarenBoii]

Originally Posted by McLaren Rulez

This more an EV problem than an MG problem. Most EVs from the Nexon to the EQS were launched at much higher prices than they sell for now.

Eh that has been only true recently, as a result of falling battery prices. Before 2024, the Nexon ev underwent several upward price corrections (even if we exclude facelifts)

[sunilkumarp89]

MG has provided more details on the BaaS program in their website. Seems it is kind of an emi scheme for a fixed tenure based on the finance partner we choose. They have onboarded some finance partners like Bajaj and the terms are different for each of them it seems.
Please check the below link
https://www.mgmotor.co.in/vehicles/w...india/baas-faq

[ron178]

Originally Posted by Dabhi73

It seems they will fit GPS or other navigation system for this purpose. This will expose their customer's whereabouts and also all his commute which I think is a great threat to privacy. I will be very much sceptical to share this data and that too to Chinese company. I think this is very dangerous.

Or…they could just be using the trip odometer? I can understand your concerns about privacy, but the allegations seem to be based on an assumption that’s not extremely likely to be true or untrue.

[sunilkumarp89]

Originally Posted by ron178

Or…they could just be using the trip odometer? I can understand your concerns about privacy, but the allegations seem to be based on an assumption that’s not extremely likely to be true or untrue.

They will fix some telematics device to calculate the kilometers as per the faq in mg motors website about BaaS program

[digitalnirvana]

Originally Posted by ron178

Or…they could just be using the trip odometer? I can understand your concerns about privacy, but the allegations seem to be based on an assumption that’s not extremely likely to be true or untrue.

The FAQ for BaaS says there will be a telematics device fitted. It'd be easier to implement as a standalone device like a GPS dongle, but lets see what they actually use.

[HillMan]

After this unfortunate dictate, I would rather be cautious of buying a Chinese car. The long-term future of these vehicles is unknown.

https://www.moneycontrol.com/automob...l?classic=true