Nio Launches Battery-as-a-Service in China and Reduces EV price Tag

Electric vehicle (EV) manufacturer NIO has launched Battery as a Service (BaaS) in China.

The company, headquartered in Shanghai, says its NIO BaaS users can purchase a car without the battery – a move that will make EVs much more price competitive while also providing the flexibility to change battery capacity depending on the needs of the vehicle owner. BaaS users are also entitled to NIO’s Power Swap and flexible battery upgrade services, as well as the national NEV subsidies and purchase tax exemption enjoyed by users who purchased batteries.

The company claims that BaaS represents a solution to the ‘long-existing challenges for EV penetration, including battery degradation, battery upgradability, and lower resale value’.

With the battery price not included in the vehicle sales price, nor in the finance payments, the costs are significantly lower to switch to an EV. Users who choose to purchase NIO cars with BaaS can benefit from RMB 70,000 (about $AU14,000) off the car price across all NIO models, and subscribe to a 70kWh battery pack for RMB 980 ($AU195) per month.

For users who do not subscribe to NIO’s Worry-Free Service Plan – which includes no usage limits on repairs and maintenance within the plan’s duration, door-to-door pick-up and delivery, a free courtesy car, and free cellular data, amongst other things – there’s a battery guarantee fee of RMB 80 ($AU16) per month.

BaaS is based on NIO’s battery swapping technologies and national network of 143 Power Swap stations and services, and the company says it has already completed over 800,000 swaps for users.

The company currently manufacturers three EV SUV models – the EC6, ES8 and ES6 – and has plans for more.

Source: Motor Trader E-magazine (September 2020)

17 September 2020

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