Tata, MG offer free charging, battery rentals to lure EV buyers

India’s leading electric vehicle (EV) manufacturer, Tata Motors, is offering free charging and discounts to attract consumers, while rival MG Motor has launched a pioneering battery rental plan. These efforts aim to address slowing sales growth in the EV market, which currently accounts for 2% of India’s 4.2 million annual car sales.

Sales growth has stalled, with analysts pointing to high vehicle prices and insufficient charging infrastructure as key barriers. To combat this, MG Motor has introduced the world’s first “Battery-as-a-Service” plan. This innovative plan makes EVs more affordable by allowing customers to rent the battery, one of the most expensive components, for Rs 3.5 per km, with a minimum monthly charge covering 1,500 km.

Meanwhile, Tata Motors, which saw a 15% year-on-year drop in EV sales in August, has responded by slashing prices on its Punch and Nexon models by 10% to 20%. The company is also offering six months of free charging at 5,500 stations operated by its power unit, Tata Power. This brings the price of Tata’s best-selling Nexon EV to approximately $15,000, aligning it with the cost of its gasoline and diesel counterparts.

Despite the challenges, major automakers such as MG Motor, BYD, BMW, and Mercedes-Benz continue to launch new EV models in India, targeting affluent buyers. MG Motor’s latest offering, the Windsor EV, priced at Rs 999,000, includes features such as a panoramic glass roof, reclining rear seats, six airbags, and a year of free charging at select stations.