MG Hector Tomahawk EV BaaS Explained: Price, Payment Plan

JSW MG Motor India has launched a new electric SUV, the MG Hector Tomahawk EV. Like other MG electric cars, this 5- and 7-seater electric SUV is available with a Battery-as-a-Service (BaaS) programme. The Hector Tomahawk BaaS price range starts at Rs. 13.99 lakh, with a battery subscription charge of Rs. 4.90 per km. Its ex-showroom price starts at Rs. 19.49 lakh. If you are looking for a new electric SUV under the BaaS scheme, this comprehensive breakdown of the Hector Tomahawk EV BaaS will help you narrow down your options.

What is BaaS?

Essentially, Battery-as-a-Service, aka BaaS, is a dual-finance model that makes EV ownership more economical. In Battery-as-a-Service, the electric vehicle cost remains separate from its battery cost. You can buy the electric vehicle and pay a monthly fee to use its battery. The monthly payment to use the battery is more like a battery EMI, since it depends on the loan you take out for it. Meanwhile, you can buy the vehicle, whether on loan or in cash, without taking the battery’s price into account. Usually, the battery loan tenure is longer than the vehicle loan tenure.

So, with BaaS, instead of buying the most expensive part of an EV – the battery, you pay a monthly fee to use it. Excluding the battery’s cost, the electric vehicle’s upfront cost is substantially lower than its ex-showroom price.

MG Hector Tomahawk EV BaaS Prices

While MG has not revealed the variant-wise prices of the Hector Tomahawk EV, its BaaS price range starts at Rs. 13.99 lakh with a battery subscription charge of Rs. 4.90/km. Because a 69.2 kWh battery pack powers all Hector Tomahawk EV variants, the battery subscription cost should be the same for all variants. As far as the base Excite variant is concerned, its BaaS price slashes its upfront cost by Rs. 5.5 lakh.

Now, most MG finance partners base their EMIs on a minimum monthly running of 1,500. Therefore, with a Rs. 4.90/km battery subscription cost, you would need to pay around Rs. 4.90 x 1,500 = Rs. 7,350 every month to use the battery. Moreover, to drive 1,500 km per month, you need to cover 50 km per day.

Another key point to consider is that the per-kilometre charge does not include RTO tax, Insurance, TCS, or other statutory taxes. You will have to pay taxes on the full value of the vehicle because the battery is included in that value.

While the MG Hector Tomahawk BaaS scheme slashes Rs. 5.5 lakh from the upfront cost it asks, it adds up to nearly Rs. 7,350 to the SUV’s monthly expenditure. Moreover, if you finance the SUV at a 9% interest rate for 5 years, you would be paying around Rs. 23,000 as the monthly EMI for the vehicle alone. Therefore, to make the most of the MG Hector Tomahawk BaaS scheme, it would be best to make the highest possible down payment to keep the loan amount as low as possible. This is primarily because the interest rate on any loan can substantially increase the amount you repay to settle the loan.

Value Additions

The MG Hector Tomahawk comes with the MG e-Shield package, which offers the following benefits.

• Lifetime warranty on the battery pack for the first owner. However, if the car is resold, the warranty is reduced to 8 years/1,60,000 km for the second owner. Note that the 8 years / 1,60,000 km is calculated from the day the vehicle was bought as a brand-new model.
• 3-year unlimited-kilometres vehicle warranty, 3 years of free roadside assistance, and 2 labour-free services.
• Complimentary 7.4 kW AC Home Charging Box.
• Assured buyback plan – you can get 60 per cent of the car’s value after 3 years.

Final Thoughts

Without a shadow of doubt, the MG Hector Tomahawk EV is a great electric SUV for large Indian families, and its availability with BaaS offers an economic ownership option. However, it is important to bear in mind that BaaS is a dual-loan model that helps you take a separate loan for an EV’s battery. BaaS does not actually reduce the EV’s cost; it just reduces the price you need to pay upfront to own the EV. Meanwhile, if you take loans for both the vehicle and its battery, the aggregate EMI can be nearly the same as, or even higher than, the EMI for financing the vehicle as a single unit (battery + chassis). Therefore, while buying an MG Hector Tomahawk EV or any other EV with BaaS, it is imperative to estimate the overall running cost for the duration you intend to own the vehicle.

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