For those who initially chose to purchase a car under the BaaS option, Nio will offer them an option they can regret.
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For Nio (NYSE: NIO, HKG: 9866) customers who chose to purchase a vehicle under the BaaS (Battery-as-a-Service) option, previously they were unable to switch to buying that battery. Now, Nio is going to offer them the option to reverse their decision.
Nio plans to allow users who have opted for the BaaS service to buy out the vehicle's battery, according to the information posted in the Nio app.
As background, Nio's vehicles support the separation of body and battery, so consumers can choose the BaaS plan to purchase a vehicle, buying only the body and renting the battery. Of course, they can also opt-out of the BaaS option in order to purchase a vehicle that includes a battery.
If consumers choose the BaaS option, the purchase threshold for a standard range model with a 70/75 kWh battery pack is reduced by RMB 70,000 ($10,700), and the monthly battery rental fee is RMB 980.
For the 100-kWh long-range battery pack, the cost of vehicle purchase is reduced by RMB 128,000 and the current monthly battery rental cost is RMB 1,480.
It is worth noting that previously, once a customer chose to purchase a car on the BaaS plan, they were unable to regain ownership of the batteries in the future.
The ownership of the batteries belonged to Nio's battery asset management company Wuhan Weineng, or Mirattery, and users who chose to lease the batteries had to pay monthly rent.
Under Nio's latest plan, users will be allowed to terminate their BaaS lease agreement if they decide to reverse their initial decision.
These users can get a brand new battery at the Nio service center, and in the case of a standard range battery pack, they will have to pay RMB 70,000 for the battery pack and RMB 3,000 for the service fee.
If it is a long-range battery pack, then the cost includes RMB 128,000 for the battery and RMB 3,000 for the service fee.
They need to pay the full price if they are sure they want to buy the battery, as the banks are unable to provide loans for the battery pack purchases.
If they do not need to replace the battery with a brand new one, then the service fee of RMB 3,000 can be waived.
This option is cost-effective for consumers who have not been using the BaaS service for a long time, but not for those who have been leasing batteries for a long time, as the monthly rent they previously paid cannot be used to offset the cost of the battery purchase.
However, for Nio users, an additional option that they can regret is certainly welcome.
If a customer chooses to buy out the battery, then the value of his or her vehicle will change and insurance arrangements will be involved. Nio has taken into account the matter and will communicate directly with the insurance company without the user having to deal with it.
Nio has already conducted a small-scale communication with users about the plan, and a formal announcement is expected to be made soon.
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