Axis Bank and JSW MG Motor India have introduced a new financing model aimed at making electric vehicles more affordable for Indian buyers. The initiative, based on MG’s Battery-as-a-Service (BaaS) concept, allows customers to take two separate loans—one for the vehicle and another for the battery.
The Dual Loan structure reduces the upfront price of an EV, addressing one of the biggest barriers to adoption. Under the program, buyers can access up to 100% on-road funding, while the battery loan can be extended for up to eight years, giving consumers the option to convert fuel expenses into predictable long-term payments.
Axis Bank’s Executive Director Munish Sharda said the partnership aims to expand flexible financing options in the EV segment. “We are delighted to partner with JSW MG Motor India on the pioneering Dual Loan program, which enhances the EV financing ecosystem by offering smart and flexible solutions. We believe this collaboration will help make greener choices more accessible,” he said.
JSW MG Motor India Managing Director Anurag Mehrotra said separating the battery and vehicle costs helps consumers adopt EVs with greater financial ease. He compared the model to subscription-based technology services, adding that BaaS offers “smarter economics” and lowers the entry barrier for buyers.
MG introduced its BaaS model in September 2024 to cut initial EV costs by keeping the battery out of the purchase price. The new financing approach builds on that idea, giving buyers the flexibility to upgrade vehicles or shift between models without being tied to battery cost structures.
Axis Bank and MG have partnered since 2019, and the Dual Loan initiative expands their collaboration across retail and channel financing. The companies say the model is expected to widen EV access, support the transition to clean mobility, and strengthen India’s growing electric vehicle ecosystem.
