As of now, the number of BaaS users who want to opt out of the plan and buy the battery is extremely small, said.

(Image credit: CnEVPost)

NIO (NYSE: NIO, HKG: 9866) said it will allow users who originally opted to purchase a car on the BaaS (Battery-as-a-Service) plan to opt out of the program. In its latest response, the company further explained the idea behind this.

NIO will offer the option because some customers have come forward with the idea of buying out their batteries, the company was quoted as saying in a Monday night report by local media outlet Auto Time.

NIO and its battery asset company, Mirattery, revised the terms of service after working together to offer an opt-out option that was generally well-received by users, the company said.

As of now, the number of BaaS users looking to buy out the batteries is extremely low, NIO said, according to the report.

If a user expects its vehicle to last for a long time, say six or seven years, then they are advised to go with the buyout option while purchasing the car. If the vehicle is expected to have a short lifespan, then the BaaS option is more appropriate for them, NIO said, adding that users are advised to choose the right purchase option for their situation.

NIO also stressed that it is working to ensure that vehicles initially acquired based on the BaaS plan can circulate smoothly in the used car market, including through partnerships with used car operators, to increase the residual value of such vehicles, according to the report.

On August 20, 2020, NIO launched BaaS, a battery rental service, which allows the threshold for vehicle purchase to drop by RMB 70,000 ($10,700) or RMB 128,000, but requires users to pay monthly battery rental.

Previously, once a user chose to purchase a car on the BaaS plan, he or she could not regain ownership of the batteries in the future.

Mirattery, which has ownership of those batteries, said on April 19 that it now has more than 6 GWh of battery assets under management. For comparison, that number was 0.04 GWh in September 2020, the company's second month of existence.

NIO recently said in its mobile app that subscribers will be allowed to terminate BaaS lease agreements if they decide to back out.

These users can get a brand new battery at the NIO service center, and in the case of a 70/75 kWh standard range battery pack, they will have to pay RMB 70,000 for the pack and an RMB 3,000 service fee.

For the 100-kWh long-range battery pack, the cost includes RMB 128,000 for the battery and RMB 3,000 for the service fee.

Those who choose the BaaS option will need to pay in full if they are sure they want to buy the battery, as the bank is unable to provide a loan for the battery pack purchase.