Shanghai (ZXZC)- On March 14, NIO unveiled significant updates to its Battery-as-a-Service (BaaS) offering, marking a new chapter in its innovative approach to electric vehicle (EV) ownership.

The adjustments include a reduction in the monthly subscription fee for the standard-range battery pack from 980 yuan to 728 yuan, and for the long-range battery pack from 1,680 yuan to 1,128 yuan. In an appealing move for both existing and new customers, the rent paid can now partially offset the cost of eventually purchasing the battery outright. Moreover, for every payment cycle, customers are rewarded with a 100-yuan voucher, which can be used as a discount when buying a new vehicle.

NIO's power swap station; photo credit: NIO

Adding to these enticing changes, NIO announced a time-limited offer effective immediately until May 31. Customers opting for the BaaS model will benefit from a "pay for four, get one free" subscription deal and receive 60 complimentary battery swap coupons, enhancing the overall value of choosing NIO's BaaS plan.

These strategic pricing adjustments are made possible by NIO's unique battery swap system and its precise operation of power batteries throughout their lifecycle. NIO has established a comprehensive battery health management system that monitors temperature, intensity, and frequency of use—three key factors affecting battery lifespan. By leveraging big data for the operation and scheduling of batteries, NIO has extended the lifecycle and value of batteries within its ecosystem, providing the leeway to revise its BaaS pricing.

Battery lifespan is a crucial component of NIO's BaaS business model. On the same day, NIO introduced a 15-year long-life power battery solution, collaborating with its battery partners to advance the development and application of long-life batteries. NIO said this initiative not only fosters the growth of NIO's BaaS service but also offers substantial benefits to users, propelling advancements in battery longevity across the industry and contributing to the development of the new energy vehicle sector.

Since its inception in August 2020, NIO's BaaS service has catered to over 100,000 users, significantly lowering the entry barrier for EV ownership and enhancing the efficiency of customers' capital utilization, the automaker added. With these policy updates, NIO's BaaS offering becomes even more competitive, significantly reducing battery rental expenses for users and further optimizing capital efficiency.

In a parallel effort to bolster the second-hand EV market, NIO has introduced incentive measures for used car dealers handling BaaS-equipped vehicles. These measures aim to facilitate the circulation of BaaS second-hand cars, improve their resale value, and protect the interests of BaaS users, underlining NIO's commitment to comprehensive service innovation in the EV ecosystem.