NIO (NYSE: NIO) Officially Launches Battery as a Service (BaaS) Subscription Model in a Bid To Make Its EVs More Affordable

NIO (NYSE:NIO), ane of the largest EV manufacturers in Mainland china, officially launched its much-anticipated Battery as a Service (BaaS) subscription model today at a dedicated issue in Shanghai.

We noted in our post on the 23rd of July that NIO has been working toward launching this BaaS facility for the better function of half-dozen months and that its formal launch was imminent. Today, the company delved into the modalities of the plan in detail, noting in its printing statement:

"The BaaS model allows users to purchase electrical vehicles and subscribe [to] the usage of battery packs separately. If users opt to purchase an ES8, ES6, or EC6 model and subscribe to use the 70kWh battery pack under the BaaS model, they can bask the vehicle purchase price with an RMB70,000 deduction off the original price and pay a monthly subscription fee of RMB980 for the battery pack."

This substantially means that users will exist able to salvage RMB70,000 ($ten,116) on the purchase of NIO'south ES8, ES6, and EC6 models if they choose to rent their EV'south entry-level 70KWh bombardment pack, paying simply RMB980 ($141) per month as a subscription fee for the BaaS facility.

Apart from the reduced price, NIO's BaaS subscription model as well allows its customers to keep upgrading their batteries periodically while retaining the residue of the EV construct. This finer lengthens the useful life of a NIO EV.

At the same time, NIO is besides expanding its bombardment bandy service in China, whereby, a user does non have to endure a lengthy expect for the EV bombardment to recharge. Instead, the depleted battery tin can simply be exchanged with a fully charged one at ane of the many designated battery swap stations.

At the launch consequence today, NIO'southward founder William Bin Li disclosed that the company has already established 143 battery swap stations across lx Chinese cities, begetting a cumulative chapters of over 800,000 battery swaps per twenty-four hours.

Finally, NIO too revealed further details of a defended battery asset management company:

"On August eighteen, 2020, NIO, Contemporary Amperex Technology Co., Limited ("CATL"), Hubei Science Technology Investment Group Co., Ltd. and a subsidiary of Guotai Junan International Holdings Limited (collectively the "Partners") jointly established the Battery Asset Visitor. NIO and the Partners volition each invest RMB200 million and agree 25% disinterestedness involvement in the Battery Nugget Company respectively. The Battery Asset Company is dedicated to buy and own the battery avails, and lease the battery packs to users who subscribe to the BaaS model."

NIO is steadily gaining strength in China. According to the Chinese National Rider Car Data Exchange Clan (CPCA), the top 10 domestic EV manufacturers deemed for fourteen.1 percent of the full EV sales in People's republic of china during H1 2020. NIO accounted for 31 percent of the sales volume generated by the top ten manufacturers, having sold xiv,169 units during the menses. The launch of a BaaS facility will likely further aggrandize NIO's footprint across China.

Source: https://wccftech.com/nio-nyse-nio-officially-launches-battery-as-a-service-baas-subscription-model-in-a-bid-to-make-its-evs-more-affordable/

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