Vidyut partners with JSW MG Motor India to launch a battery rental program for electric cars • EVreporter

Bengaluru-based EV ecosystem startup Vidyut has partnered with JSW MG Motor India to launch a Battery-as-a-Service (BaaS) financing program for passenger cars, including the MG Comet EV, MG Windsor EV, and MG ZS EV, with a rental fee starting at INR 2.5/km (this fee applies only to the MG Comet EV; fees vary for other models) based on battery usage. This initiative aims to reduce the running cost of EVs by 40% compared to traditional internal combustion engine (ICE) vehicles. Founded in 2021, Vidyut offers battery subscription financing for EV ownership, while JSW MG Motor India, a joint venture between SAIC Motor and JSW Group established in 2023, focuses on developing a sustainable automotive ecosystem with a diverse vehicle range.

The BaaS model allows customers to purchase the vehicle without the battery, reducing the initial acquisition cost. After completing the vehicle’s financing tenure (excluding the battery) over 3-5 years, depending on the model, Vidyut will offer customers the option to continue renting the battery or purchase it. Customers can also exit the program at any time by paying the battery’s residual value.

Commenting on this partnership, Xitij Kothi, Co-Founder of Vidyut shared, “People think of battery as an asset, but we think 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.”

Speaking on the partnership, Gaurav Gupta, Chief Growth Officer, JSW MG Motor India, said, “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% buyback (The buyback program is part of a three-year maintenance package) value after three years of ownership, reassuring a seamless and confident ownership experience.”

In addition to the BaaS program, Vidyut has recently expanded into the sale and financing of used EVs, particularly targeting the resale of 3-wheeler commercial EVs in Delhi NCR, Bengaluru, and Hyderabad. The company operates in 30+ cities across India and partners with OEMs such as Tata Motors, Mahindra, and Altigreen. Vidyut has raised $14 million in funding, led by 3one4 Capital and supported by various investors.

Also read: JSW MG Motor India launches EV ecosystem initiatives at DriEV.Bharat