- Firefly launched BaaS car purchase plan, lowering starting price to RMB 79,800 ($11,120), a drop of over 30 percent from the starting price that includes the battery pack.
- Firefly originally planned to launch its BaaS pland on August 1.
Nio's (NYSE: NIO) sub-brand Firefly, which focuses on small electric vehicles (EVs), has launched a battery rental car purchase plan ahead of schedule as one of its main strategies to stimulate sales.
Firefly announced today the launch of its BaaS (Battery as a Service) purchase plan, reducing the starting price of its sole model, the Firefly EV, to RMB 79,800 ($11,120), a decrease of RMB 40,000 from the starting price that included the battery pack.
The Nio sub-brand had originally planned to launch the BaaS plan on August 1, and the early launch may indicate significant sales pressure at present.
Specifically, the starting price for the entry-level variant of the Firefly EV under the BaaS scheme has been reduced from RMB 119,800 to RMB 79,800, a decrease of 33.39 percent.
The starting price for another higher-priced variant has been reduced from RMB 125,800 to RMB 85,800, a decrease of 31.80 percent.
Consumers purchasing vehicles under the BaaS scheme will need to pay a monthly battery rental fee of RMB 399.
Firefly is offering a promotion for consumers who purchase vehicles by June 30, where every payment made for one BaaS bill will result in the next bill being waived, effective for three years.
Battery degradation affects the value of vehicles in the second-hand market, but under the BaaS model, the battery packs do not belong to the owners, so they do not need to worry about economic losses caused by battery depreciation, Firefly emphasized.
At the same time, the battery rental service company provides battery warranties, so users do not need to purchase additional battery insurance or worry about battery warranty issues, the brand said.
Firefly launched its first model, the Firefly EV, on April 19, announcing that its BaaS battery rental purchase plan would be available on August 1.
This move differed from the approach taken by Nio's main brand and its Onvo sub-brand that targets the family car market. Both brands announced their BaaS plans directly when launching new models.
The decision to launch the BaaS plan ahead of schedule may indicate that Firefly is facing pressure on sales.
Firefly began its first deliveries on April 29 and delivered 231 units in April.
In May, Firefly delivered 3,680 units during its first full month of deliveries.
Based on weekly insurance registration data, Firefly's volumes for the first two weeks of June were 500 units and 440 units, respectively.
($1 = RMB 7.1765)
