What is the perfect solution for electric car users?

In addition to great savings from the initial car purchase price and maintenance costs during operation, the electric car battery rental policy like the way of Vietnamese car company VinFast according to the assessment will help users really feel secure because the production shall bear all risks.

Buy outright battery – expensive solution for invisible benefits The biggest benefit of buying outright batteries is not in the material value but in the spiritual value. It’s a feeling of ownership. But to get that intangible benefit, customers will have to trade it with a relatively large financial burden. The battery is by far the most expensive component of an electric vehicle, accounting for about 30-40% of the cost, according to UK-based research and consulting firm GlobalData. In the foggy country, most electric cars are still at least $13,000 more expensive than a comparable internal combustion engine car. “The biggest barrier to owning an electric car is cost,” Rod Dennis of RAC, the UK’s leading car service, told The Guardian. Although there has been a “revolution” in battery production costs, falling from $1,000/kWh in 2010 to about $150-200/kWh in 2020, according to James Frith, head of Energy Finance column. New Energy (NEF) of Bloomberg news agency, “for electric vehicles to be as cheap as internal combustion engine cars, the battery price must be brought back to the threshold of $100/kWh”. However, according to Bloomberg, the increase in raw material prices on a global scale can create a “bottleneck” that makes the goal of lowering the price of the “energy heart” of electric vehicles more difficult. “It is not a wise choice to spend thousands of dollars more just for the ‘feel of ownership’. Not to mention, the user will be responsible for all risks with the battery block if any, “said an automotive expert. Swap batteries – more risks, more costs To reduce costs for customers, some electric car manufacturers offer a battery swap policy to separate the battery from the price of the car. Specifically, instead of buying outright, customers will rent the battery pack from the manufacturer or a 3rd party. When the battery is almost depleted, the customer will bring the car to the service workshop to replace the fully charged battery. In August 2020, NIO launched a BaaS (Battery as a Service) battery exchange service with a subscription fee from 980 yuan / month (150 USD). According to “Tesla of China”, the BaaS service helps the company reduce the price of cars by about 70,000 yuan (more than $10,000). For customers, refueling the car also becomes as quick as refueling. However, every coin has two sides, the battery swap policy also shows many inadequacies. Before NIO, the battery swap model was tested in the French and Taiwanese markets, but was not really successful. In 2019, French car company Renault had to stop this policy. “Battery swapping will be more suitable for two and three-wheeled vehicles, using low voltage, usually 48V, and small battery capacity, from 1.5kWh to up to 4kWh”, said CV Raman – Head of Engineering of the company. Maruti Suzuki India, analysis. Raman also said that this is the reason why Maruti Suzuki did not enter the electric car battery swap business. “Car batteries use high voltage, are integrated with many technologies and involve the cooling system. Frequent swapping compromises integrity, creates insecurity and increases the risks associated with electrical contact,” he said. On the other hand, Omprakash Upadhyay, an electric vehicle expert at TATA AutoComp (India), said that swapping batteries does not completely reduce the cost burden for customers. This model requires large, complex and expensive infrastructure as service shops have to keep a large stock of pre-charged batteries at all times. “Invisible medium, each car must have at least two sets of batteries – one set inside the vehicle and one available in the battery replacement station. This increases the cost of the car a lot, given the fact that the battery is the most expensive component in an electric vehicle,” Upadhyay said. Battery subscription – optimal for economy, maximum for safety The battery subscription policy that some companies like VinFast apply can be considered a perfect solution, helping to balance both the advantages and limitations of the two forms of outright purchase and swap. In economic terms, instead of having to spend “a lump” of thousands of dollars to buy batteries, customers will be leased batteries by manufacturers. The monthly subscription fee is offered by the company based on the calculation of the average distance traveled. With the VF e34 model, VinFast applies a subscription fee of 1.45 million VND/month for a distance of 1,400km, meeting the average travel demand well. “Operating costs, including battery rental and electric charging, are equal to the cost of gasoline consumption, and the price and features are superior to gasoline cars,” said Ms. Thai Thi Thanh Hai – General Director of VinFast. . According to estimates by GlobalData, the cost of buying a battery pack is equivalent to the total subscription fee for more than 8 years. The form of “split” cost over time is currently quite popular with technology products and services such as phone, television or Internet packages. In particular, the indispensable advantage of the subscription form is that the manufacturer will be responsible for the battery throughout the product life cycle, even to the recycling stage, bringing absolute peace of mind and peace to customers. row. Like VinFast, the company is committed to replacing customers with a new battery pack when the battery’s ability to receive charge drops below 70%. This is a “super benefit” that customers who buy the battery outright do not get. “Battery rental helps car owners benefit more when the battery is checked, maintained and serviced in a timely manner by the manufacturer. This model will be the key for electric vehicles to develop on a large scale, “said GlobalData.