In response to recent rumors that it's car owners' free battery swap benefits will be drastically reduced or even cancelled, Chinese EV maker Nio today denied.

Sina Tech quoted Nio's response as saying that the free lifetime battery swap policy has not been cancelled and new car buyers will still be able to take advantage of the service.

In August 2019, Nio announced that on top of the free lifetime warranty (no expiration date, no mileage limit), owners of the first batch of Nio ES8 and ES6 will be entitled to free lifetime battery swap from August 24, 2019.

Under Nio's battery swap system, owners who drive to a battery swap station are eligible for free lifetime battery swap service in China.

The rumors may arise because of the recent talk about Nio's Battery as a Service (BaaS) business model.

Li Bin, said Nio's founder, chairman and CEO, during its earnings call on Tuesday that Nio's(BaaS) business model has made significant progress, with the first BaaS vehicle having completed validation of insurance, loan and registration processes.

Nio has completed all the product announcements and certifications required to sell complete vehicles and batteries separately, a major breakthrough in Nio's technology and business model innovation, he said.

Currently, Nio is still finalizing preparations to officially offer Baas mode services and will officially release the implementation plan in the third quarter, Li Bin said.