NIO Releases BaaS Battery Rental Service, Takes Lead in Business Model Innovation

(Source: NIO)

Chinese EV manufacturer NIO released the BaaS battery rental scheme on Aug. 20, including features such as separation of the car and electricity, battery rental, recharging, exchanging and upgrades. BaaS, short for Batteries as a Service, is regarded as a breakthrough innovation in technology and business models, Securities Daily reported.

According to Securities Daily, Li Bin, the founder of NIO, said that the introduction of the BaaS model will sharply lower the threshold for consumers wishing to purchase vehicles. Furthermore, after consumers buy an NIO car through the BaaS model, the cost will also be reduced. Baas will provide systemic solutions to problems that have always affected the market sales of electric vehicles, such as battery attenuation, inability to upgrade batteries, and major changes in vehicle retention rate.

Users who choose to purchase NIO vehicles through the BaaS model will enjoy a 70,000 yuan discount on the original cost, without the need to also purchase battery packs. The price of the battery pack is not included in the motor vehicle sales invoice price, Securities Daily reported.

SEE ALSO: Industry Regulators Take Charge to Promote EV Battery Swap Safety, NIO Set to Emerge as Biggest Winner?

By pay monthly service fees, users choose from a range of battery packs of different capacities corresponding to individual needs. In addition, users can obtain subsidies and tax exemptions according to a new policy implemented on April 23 this year to support the development of new business models with battery swap technology, according to Securities Daily.

Pandaily reported earlier that NIO is the only domestic EV manufacturer to still receive a government subsidy for vehicles above a threshold price of 30,000 yuan.