Known for its leading position in the Chinese electric car (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 with a 70 kWh battery pack, customers participating in the BaaS program will receive a 70,000 yuan rebate on the purchase price of the car, or about $ 10,120, and pay a monthly subscription fee of 980 yuan, or about $ 142. In addition, customers will still be able to receive tax returns and government subsidies for EVs.
Speaking about the benefits of the BaaS subscription, William Bin Li, Founder, Chairman, and CEO of NIO, said, “The successful launch of the BaaS model will enable NIO users to take advantage of the lower initial purchase prices of NIOs. our products, flexible battery upgrade options and battery performance guarantee. “According to Li, NIO has already deployed 143 battery replacement stations in 64 cities in China, and has completed more than 800,000 battery swaps for our users.”
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Earlier this week, NIO, Contemporary Amperex Technology Ltd., otherwise known as CATL, and two other partners formed a joint venture called Battery Asset Company. With an investment of 200 million yuan – about $ 29 million – each, the four parties will each have a 25% stake in the Battery Asset Company, which will buy the batteries and own them related to the BaaS program and they then lease back to subscribers.
Touting the announcement, Li said, “The benefits of our rechargeable, replaceable and upgradeable battery-swap technologies will continue to enhance the competitiveness of NIO products, promote conversion to our premium smart EVs and create more value for our users.” At first glance, this offer shows promise in lowering entry barriers for customers interested in buying Nio cars. Time will tell how well the product resonates with customers and how well Nio performs.
