Nio, a Chinese start-up focusing on electric vehicles (EVs), wants to get more of a foothold in Europe. To do so, the company is launching wants to offer batteries for EVs via a leasing model to European customers. These batteries can be swapped by customers through battery swap stations in Europe, allowing them to continue driving immediately when the battery is flat.
This reports Qin Lihong, director and co-founder of Nio, to Reuters news agency. Nio is a Chinese manufacturer of EVs. The company has been operating in China since 2014 and aims to have a global presence in 25 countries by 2025. Nio will offer its first model on the Dutch market, among others, from the end of this year. It is the ET7, an electric sedan with a length of 5.1 metres long, width of 2 metres and a wheelbase of over 3 metres.
Compete with Tesla Model S
The company will compete with the Tesla Model S, among others, with the ET7. The powertrain features two electric motors. One of these produces 245 hp on the front axle, while the second one produces 408 hp on the rear axle. This brings the total power output to 653 hp, while the vehicle has 850 Nm of torque on board.
Nio promises that the vehicle accelerates to 100 km/h in 3.8 seconds. Braking distance at this speed is 33.5 metres. The range based on the China light-duty vehicle test cycle (CLTC) is 1,000 km, reports the Chinese start-up. This range applies if the vehicle is equipped with a 150 kWh battery pack. The ET7 is additionally available in China with a 70 or 100 kWh battery pack; it is unclear whether these battery packs will also become available in Europe.
Cost savings for customers
With a battery leasing model, Nio aims to achieve cost savings for customers. Because the battery is not included in the selling price of its EVs, Nio can market its vehicles more cheaply. European customers will therefore spend less on buying an EV, although they will have to pay for the use of the battery.
Leasing a battery, by the way, is not compulsory. Customers can also opt to buy the battery, of which they become full owners. By comparison, the purchase of the 75 kWh battery costs about $8,700, Qin reports to Reuters, while the lease amount per month is about $135.
1,000 battery swap stations outside China
As part of its leasing programme, Nio aims to offer some 1,000 battery swap stations outside China by 2025. Most of these stations will be aimed at Europe. Nio recently opened its first factory outside China in Hungary. At this factory, the start-up will build battery switching stations, among other things. The company deliberately chooses to manufacture in Europe in view of the transport costs of such equipment, Qin reports.
At a battery swap station, Nio customers can have their EV's battery swapped in just a few minutes. In practice, this means they replace a dead battery for a full one. This allows them to continue driving immediately. Nio thus aims to offer a faster alternative to current charging stations, to which vehicles have to be connected for some time to charge their battery. Nio plans to partner with a European asset management company to finance the leased batteries.
Leasing model already available for some time in China and Norway
The model is not new, by the way; Nio has been offering China batteries via a leasing model for some time. It works in the Asian country with battery giant CATL, which buys battery packs and offers them via a leasing model.
The company has also been experimenting with battery leasing for its ES8, an electric SUV, in Norway since earlier this year. Currently, Norway has two battery swap stations. In total, some 800 units of the ES8 have been sold in Norway. Almost all of these customers chose a leasing model for their vehicle's batteries, Qin reports. In China, this is about half of all customers. Qin reports to Reuters that the Norwegian experiment has proved so successful that the company wants to roll out the model in other countries as well.
Author: Wouter Hoeffnagel
Photo: Nio
