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In recent years, China's new energy electric vehicle market has developed rapidly, and a number of brands including NIO have emerged. These companies are not only actively innovating in products and production processes, but also constantly exploring new models in terms of passenger car brand value, aftermarket services and marketing methods.
Due to the different ways of energy use, the convenience of energy replenishment is the focus of potential users, and the construction of energy supplement system is the key to ensuring the user's experience.
NIO battery swap has become a business card that distinguishes NIO from its competitors. However, to create this unique model, NIO needs to continue to invest significant resources. Set a price that will both satisfy users and ensure that the company's operations are sustainable.
1. NIO battery swap market and energy supplement system
One of the main reasons why new energy vehicles are being accepted by more and more consumers is their low cost of use. Even in the cold winter, when power consumption is higher, the driving cost of new energy vehicles is lower than that of fuel vehicles of the same level. In addition, the mechanical structure of new energy vehicles is relatively simple, and the daily maintenance cost is also lower.
However, due to the relative scarcity of charging infrastructure, users face the problem of inconvenient energy replenishment. The convenience of energy replenishment depends mainly on the duration of energy replenishment and the adequacy of equipment.
Recharge time is affected by factors such as battery capacity, charging pile power, vehicle of BMS for lithium ion battery and charging strategy. The method of replenishment and the adequacy of equipment are also crucial. At present, there are three main types of energy replenishment facilities.
Home charging pile: installed in a fixed parking space, easy to use, and something most brands give up when buying a car.
Public charging pile: It is an energy supplement facility built by charging operators, mainly in the parking lots of residential areas, shopping malls and public service centers. Some residential communities also install public charging facilities.
2. The current state of the NIO battery swap system
NIO's energy system has long been established – rechargeable, swappable and upgradeable. It's not hard to set up a system, but it's hard to implement it.
When it comes to battery swapping, most people can understand the advantage - fast energy replenishment. The battery replacement is very fast, and it is true that NIO has ensured the energy replenishment experience of NIO users in the stage from zero to one.
According to data provided by NIO, in June 2023, the proportion of users' battery swapping power exceeded the proportion of charging power, reaching 58.1%. But if the battery swap only has this advantage, it is not enough to support the continuation of this model.
On the one hand, with the continuous development of fast charging technology, the vast majority of people can actually accept a full battery in half an hour. On the other hand, the cost of battery replacement is still relatively high, at least for now. Therefore, battery swapping also needs to show more of its value.
3. Problems in NIO battery swap mode
- Battery life
In battery swap mode, there is no need for users to pay attention to the health and decay of the car battery life. Because as long as you change the battery, it is a different battery. Although some people have put forward the opinion that the new battery of their new car will be replaced with an "old battery".
However, in battery swap mode, even if there is a slight decrease in battery life, the impact on users is not great. What's more, under the battery swap system, every battery is under the management of NIO, and even if there is attenuation, the attenuation will not be too large.
- Security issues
Since before each battery swap, the battery swap station will perform a test on the battery. Therefore, the safety of the battery will be more guaranteed, and the battery in question can also be maintained in time.
- NIO battery swap station
Battery swapping is a way to replenish energy by replacing the power battery of an electric vehicle, similar to the gas station of a traditional fuel vehicle. NIO battery swap requires a vehicle design that supports the separation of vehicle and electricity and the use of a unified standard battery, and currently there are only a limited number of passenger models that support battery swap.
The advantage of NIO battery swap is that it can greatly save time for refueling. The user's battery swap process includes finding and making an appointment for a battery swap station through the APP, and the vehicle battery swap is carried out after arriving at the battery swap station, and the battery swap time is about 3 minutes.
In terms of fees, users need to pay for electricity, service and parking. The degree of battery swap is the difference between the power of the two batteries before and after the battery swap, and the electricity price is the industrial electricity price of the area where the battery swap station is located. Service fees and parking fees vary by location.
4. Business logic of NIO battery swap
Unlike traditional car companies that focus on product delivery, NIO focuses on serving users, and is committed to providing high-quality products, experiences that exceed expectations, and a harmonious user community, aiming to create a pleasant lifestyle for users. NIO battery swap strategy revolves around the entire life cycle of the user's vehicle, positioning it in the high-end market.
- Products and services
One of NIO's core product design concepts is "separation of vehicle and electricity." At the beginning of its establishment, it was found through user research that the main concerns of electric vehicle users were insufficient charging guarantees and high battery prices.
Therefore, NIO battery swap decided to adopt the model of "vehicle power separation, battery rental, rechargeable, swappable and upgradeable" to ensure that the user experience is better than refueling. Battery swapping is supported through NIO battery swap, which is currently exclusive to users.
- After-sales service
NIO has launched the NIO Service, which provides car owners with warranty protection, regular maintenance, roadside assistance and other services. Service specialists can pick up the car for repair or maintenance.
- User connections
Communicate with users through online and offline channels. There is the online NIO app, which provides functions such as car purchase, after-car services, peripheral products, and owner communication. In 2015, NIO established an energy business team and launched the NIO battery swap service system, gradually establishing a complete charging and battery swap network.
NIO users can choose between home charging piles, public charging piles, NIO battery swap stations, and third-party public charging piles for energy replenishment.
- Charging equipment
Users can get a 7kW AC home charging pile when they buy a car, and they can also choose to buy a 20kW home DC fast charging pile.
- Swap stations
NIO battery swap is a unique way to replenish energy. The battery replacement time was shortened to three minutes, and the service capacity reached 312 times a day.
The cost of battery swap stations includes investment costs such as land use, equipment, construction, and 12v 100ah lithium ion batteries, as well as operating costs such as power purchase, labor services, and equipment maintenance.
- User energy replenishment habits
Based on vehicle-electricity separation mode and battery swap station network. When buying a car, users can choose not to buy battery ownership, but to rent a 75kWh or 100kWh battery pack and pay a monthly service fee.
- Endurance
Second, battery swapping solves a major problem for electric vehicles in long-distance travel. Previously, many manufacturers had launched pure electric vehicle products with a range of more than 1,000 kilometers. Although the battery life is long, there are two problems.
First, the way to improve 12 volt 200ah lithium battery life is usually to increase battery power, but the cost and price of large batteries are too high. Second, large batteries will usually weigh more, and the vehicle's power consumption will increase. However, in the NIO battery swap mode, users only need to replace the large battery before a long trip to solve this problem.
5. Conclusion
Finally, there is more to be discovered than ever before. Simply put, the battery swap station is used as an energy storage facility, discharging when the power grid is under high pressure and charging when the pressure is low.
Of course, this is not only a social contribution, but also brings a considerable amount of income to NIO, so that the battery swap model can be operated better.
In addition, under the Nio battery swap, NIO will also have lower battery maintenance and recycling costs. After all, it is much more convenient to go to every battery swap station to maintain the battery than to go to every user for maintenance.
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