NIO will offer rental of batteries for electric carsAugust 20, 2020
The NIO ecosystem promises to succeed where others have failed.
NIO has never been afraid of thinking outside the box. The Shanghai-based premium electric vehicle manufacturer has already proven this with its highly successful battery swap business model. But the firm does not stop there and now NIO will begin offering another service unique to the industry: Battery as a Service or BaaS.
Soon, the automaker will give its customers the choice of buying a car with a battery from those available or, if the customer prefers, they can purchase a car without a battery and rent the battery separately.
To date, NIO has built 143 battery replacement stations in China. He has performed over 750,000 battery replacements and is currently replacing about 4,000 batteries every day. Since NIO designs and builds battery pack vehicles and offers several models (three) that use the same battery packs, it has a clear advantage.
In addition, NIO may increase the number of battery replacement stations in regions where more vehicles are sold. Its battery replacement stations are not permanent structures and can be moved as demand increases or decreases.
This scheme is largely justified. First, many Chinese residents live in apartment buildings and do not have the ability to charge an electric car overnight in their home. Therefore, their dependence on public charging infrastructure is of paramount importance. NIO Battery Changing Stations deliver a fully charged battery faster than any DC fast charger. However, NIO does not stop there and takes “battery safety” to the next level. NIO’s new Battery as a Service (BaaS) program does several things that customers will appreciate.
Secondly, the cost of a car without a battery is about 20% lower. The ES6 starts at RMB 358,000 (roughly $ 52,000) when you buy it with a 70 kWh battery. With BaaS, the car costs 287,000 yuan (about $ 42,000). The buyer then leases the battery separately from the newly formed company, which is a joint venture between NIO and its battery supplier CATL. The monthly rental for the 70 kWh battery pack is $ 140 per month. Prices for the 100 kWh battery pack will be slightly higher and will be announced in November.
Third, it offers security so you never have to worry about wasting battery capacity and offers the buyer the option to rent a larger battery whenever they want. If a customer has a 70 kWh package and wants to rent a 100 kWh battery for a long trip, they can do so. They just pay to rent a 100 kWh package for that month and change it back when the month ends. If they like the increased range, they can simply keep a larger battery and continue to pay a higher monthly rent.
In addition, when NIO has even larger battery packs in the future, customers will be able to rent them for one month, or they can keep it for themselves and pay the rent for that battery if they wish. Replacing the battery and BaaS makes NIO electric vehicles even more attractive.
NIO is a premium brand in China that competes with brands such as Mercedes, BMW and Audi. The ES6 is a luxury SUV like the BMW X3, Mercedes GLC and Audi Q5. All of these vehicles are comparable in price to the NIO ES6 when sold with a battery. However, apart from the cost, a battery with BaaS and ES6 costs about $ 10,000 less. These savings, plus the assurance that you never have to worry about battery life, should attract customers.
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