More than just an electric vehicle manufacturer, NIO launches the battery as a service subscription model

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Recognized for its leadership position in the Chinese electric vehicle (EV) market, NIO (NYSE: NIO) spreads its wings. Today, the company announced the launch of its Battery as a Service (BaaS) subscription. Available with NIO’s ES8, ES6 or EC6 models and featuring a 70 kWh battery, customers who participate in the BaaS program will receive a deduction from the vehicle purchase price of 70,000 renminbi, or approximately $ 10,120, and pay a monthly subscription fee of 980 renminbi, or about $ 142. In addition, customers will still be able to benefit from tax incentives and government subsidies for EVs.

Discussing the benefits of the BaaS subscription, William Bin Li, Founder, President and CEO of NIO, said, “The successful launch of the BaaS model will allow NIO users to benefit from the lower initial purchase prices of our products, flexible battery upgrade options and battery performance assurance. According to Li, NIO has already “deployed 143 battery swap stations in 64 cities in China and carried out more than 800,000 battery swaps for our users.”

Image source: Getty Images.

Earlier this week, NIO, Contemporary Amperex Technology Ltd., otherwise known as CATL, and two other partners have formed a joint venture called Battery Asset Company. With an investment of 200 million renminbi – about $ 29 million – each, the four parties will each hold a 25% stake in Battery Asset Company, which will purchase and hold the batteries linked to the BaaS program, then lease them back to them again. subscribers.

Promoting the announcement, Li said, “The benefits of our rechargeable, exchangeable and scalable battery exchange technologies will continue to improve the competitiveness of NIO products, promote the conversion to our high-end smart EVs and create more of values ​​for our users. At first glance, this offer looks promising in lowering the barriers to entry for customers interested in purchasing Nio vehicles. Time will tell how well the product resonates with customers and how well Nio performs.



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