Stepping up the competition in the electric vehicle (EV) market, JSW MG Motor on Wednesday launched its electric crossover sport utility vehicle (SUV) Windsor with a new and ‘aggressive’ pricing model, an assured buyback plan, a lifetime battery warranty, and free public charging for one year.
Under this new battery-as-a-service (BaaS) pricing model, customers can purchase the Windsor at a starting price of Rs 9.99 lakh (ex-showroom) and then pay a battery usage fee of Rs 3.5 per kilometre (km).
The Windsor is a 4.29-metre-long crossover SUV, positioned in the same segment as Tata Motors’ recently launched Curvv electric SUV, which measures 4.31 metre.
The Curvv EV is priced from Rs 17.49 lakh (ex-showroom).
Parth Jindal, director, JSW MG Motor India, indicated the firm is not satisfied with being a small player in India and has introduced this pricing model and other benefits to disrupt the electric car market.
“Majority of car sales in India are happening in the below Rs 10 lakh segment.
"We want to create an evolution. We want EV penetration to increase in this country.
"That is what MG stands for. We don’t think we can do that if we are playing in that higher-priced segment. We need to play in that Rs 9-11 lakh segment,” he explained.
“If you want to sell just 1,000-1,500 cars per month, you can badge the car at a higher price.
"We don’t want those numbers. We want to compete with the Rs 9 lakh internal combustion engine (ICE)-run cars and see how many (volume) sales they are doing per month.
"That is our ambition... We don’t want to be a 1.8-2 per cent market share company.
"We don’t want EVs to be 2 per cent of the total sales of the automotive industry.
"We have to be aggressive and bring these concepts, otherwise the Indian consumer will never take to EVs,” he added.
High acquisition costs, battery life concerns, and uncertainty about the resale value of electric cars have been top concerns for customers.
To address these, JSW MG Motor announced on Monday that Windsor buyers will receive a lifetime battery warranty.
Additionally, the company will buy back any three-year-old Windsor at 60 per cent of its value, provided the customer had taken the three-year annual maintenance package at the time of purchase.
The company will also offer a free vehicle maintenance warranty, free roadside assistance, and scheduled servicing for three years.
The Windsor is the first car to be launched by the company after JSW Group acquired a 35 per cent stake in March.
Jindal told reporters that Windsor should not be just a big-city phenomenon.
The Windsor is the third electric car in JSW MG Motor's stable in India after the ZS and Comet.
JSW MG Motor India intends to move away from conventional ICE vehicles as it focuses on new energy vehicles (NEVs) for the future.
Jindal explained how the total ownership and running cost of a compact ICE car, priced at Rs 9 lakh (ex-showroom), is still more than the much more spacious and feature-loaded Windsor.
“The current EMI for a Rs 9 lakh ICE-run car is about Rs 25,000 per month.
"Considering an average mileage is about 12 km per litre, your running cost comes to about Rs 8 per km.
"If you run this car for 1,500 km per month, then your fuel expense comes to about Rs 12,000 per month.
"On top of this, you spend an average of Rs 1,000 per month on oil changes, servicing, etc.
"So, Rs 38,000 is your out-of-pocket monthly expenditure if you are buying a Rs 9 lakh ICE-run car,” he said.
“If you buy a Windsor at the starting price of Rs 9.99 lakh, your EMI comes to around Rs 29,500 (without the battery).
"Since the battery fee is Rs 3.5 per km, and if you pay Rs 1 per km for charging the total fuel cost is Rs 4.5 per km.
"If you run the Windsor for 1,500 km, you end up paying Rs 6,750 as the total fuel cost.
"So, Rs 36,250 is your out-of-pocket monthly expenditure if you are buying a Windsor using the BaaS scheme," he said.
“So, Windsor, which is much bigger than any ICE-run compact car and has many more features, is equivalent to the end customer to a Rs 9 lakh ICE-run car,” he added.
