Xpeng's range is reduced through a software lockout, which allows consumers Nio to unlock the limited battery capacity for a fee.

Xpeng has yet to reveal how much power will be locked under the taster plan and how much it will cost to pay for the upgrade later. This information will be officially announced at the Beijing Auto Show.

For consumers, both Nio and Xpeng's battery rental service are sold on a "body and battery split" basis. They price the body and the battery separately, but the monthly price of the battery and the rental period are different.

Nio's body/battery split service is based on its own power exchange system, which allows the car and battery to be physically separated.

This means that if the consumer does not need the car for an extended period of time, it is possible that the battery can be returned to avoid paying the lease fees incurred while the vehicle is idle.

In addition, users can upgrade the battery pack for more advanced battery technology.

In contrast, Xpeng's current models do not have the ability to physically separate the body from the battery, so its proposed battery leasing service is more akin to selling the battery price to consumers in installments.

It's a financial service in disguise. At this stage, electric car makers are aiming to keep the price of their vehicles as low as possible in order to gain more customers.

For example, for a 70 kWh battery valued at RMB 70,000, after paying for the battery for more than 66 months, the consumer will pay more for the battery than the price of the battery itself.

(By contrast, Xpeng's battery rental service has a time limit, a total of 84 months). When that time expires, the owner then becomes the owner of the battery.

It seems like Xpeng's battery rental plan is a better value, but the life of a 7-year-old battery is significantly depleted, and Nio keeps the battery in relatively good condition with a battery swap.