On March 14th, NIO held a strategic release event for long-lasting batteries. At the event, details about the new BaaS battery rental plan and the NIO sub-brand, Ledaow, were officially revealed.
NIO presents long-life battery solution in cooperation with CATL For electric vehicles, the battery has always been the core. Since the development of electric vehicles, the battery life has been a concern. Even by 2024, this will become a problem that many car owners cannot ignore. At the press conference, NIO founder Li Bin demonstrated that from 2016 to now, the cumulative number of new energy vehicles in China has reached nearly 20 million. Based on an 8-year battery warranty, new energy vehicles from 2016 will face warranty expiration this year. According to the new energy vehicle inventory at the end of 2023, it is estimated that nearly 20 million new energy vehicles will face battery warranty expiration by 2032. The expiration of the battery warranty means that car owners will need to take responsibility for replacing the battery and any quality issues. According to the data provided by Li Bin, the cost of battery replacement is undoubtedly significant. Based on the current market, the cost of replacing a battery has already exceeded 230,000 yuan (31960$). Even for a hybrid model with a 30kWh battery, the cost of replacing the battery is close to 60,000 yuan (8340$). For most electric vehicle owners, this is a significant expense.
In contrast, the current battery calendar life is lower than the actual vehicle usage period. The average vehicle usage period can reach 15 years, but the current industry average warranty period is only 8 years. Because of this, Li Bin called for urgent action to solve the battery life problem. Thanks to the unique advantages of the battery swapping system, NIO’s self-built charging and swapping network can operate the battery throughout its life cycle, covering the three major influences on battery life: temperature, intensity, and frequency, optimizing the life of the power battery within the swapping system and enhancing the total value of the battery. At the press conference, he first proposed the industry’s first long-life battery solution, using independent innovation in the full life cycle operation of the power battery and battery technology to achieve the technical and operational goal of using the power battery for 15 years and reaching 85% health, creating greater value for users. At the event, NIO also signed a cooperation agreement with CATL to jointly develop long-life batteries, and has achieved the above goals.
New BaaS policy released, further price reduction Nio’s BaaS is a battery rental service proposed by Nio in 2020, also known as “car-electricity separation”. Users can consider renting the battery in a subscription form when purchasing a new Nio car, thereby reducing the overall cost of purchasing a car. For long-life batteries, it is a long-term plan for Nio to have further adjustment space for BaaS. Nio believes that developing long-life batteries, combining with its own charging and swapping network for refined operation to extend the life of existing batteries, can extend the service life of the batteries, allowing Nio to further adjust the BaaS battery rental service space and bring greater benefits to users.
Under this logic, NIO has announced a new BaaS rental policy, with the standard battery pack rental reduced from 980 yuan (140$) per month to 728 yuan (100$) per month, and the long-range battery pack rental reduced from 1,680 yuan (230$) per month to 1,128 yuan (160$) per month. In addition, users will also enjoy a new gift voucher policy: for every BaaS bill payment, a 100 yuan (10$) gift voucher will be given, which can be used as a discount for a new car purchase! And before May 31, 2024, buying a NIO with BaaS will give 1 month free for every 4 months of battery rental service fee paid! 60 free battery swap vouchers will also be given.
NIO to launch “Leda” car brand in mid to late May NIO co-founder Qin Lihong revealed that NIO’s sub-brand Leda will be officially launched in early May. CEO Li Bin explained that the name “Leda” was chosen to bring joy to families and symbolize the joy of every journey. Leda is positioned as a more affordable but not low-end brand, targeting mainstream brands like Tesla.