Nio said China’s revised vehicle purchase tax policy favors its battery swap models, as the Shanghai-based EV maker prepares to unveil its newest generation of battery swap stations.
“Starting January 1, 2026, the vehicle purchase tax incentive will be adjusted from full exemption to a 50% reduction,” Nio wrote in a WeChat post Thursday. “The new policy favors battery-swap models with vehicle–battery separation.”
Under the EV maker’s Battery as a Service program, customers purchase the vehicle without the battery and pay a monthly subscription fee for battery access, resulting in a lower vehicle purchase price and therefore lower purchase tax.
The company, founded and led by William Li, opened 679 stations in China in 2024 and 681 stations in 2025. This year, it plans to build at least 1,000, Li said on Thursday.
“Purchasing Nio, Onvo, or Firefly models using the BaaS battery rental plan allows buyers to enjoy additional purchase tax reductions, saving between RMB 1,770 and RMB 9,558, depending on the vehicle price,” the company added in the post.
Battery Supply Expansion
Separately, Nio said on Thursday it will add more than 4,200 long-range battery packs in January, including 1,200 units of 100 kWh packs and over 3,000 units of 102 kWh packs.
“Going forward, the battery swap system will continue to supplement long-range battery packs based on user demand,” the company said.
The expansion comes after Nio prioritized battery supply for vehicle production over its swap stations in recent months.
In September, Nio said it would prioritize 100 kWh battery packs for production of the third-generation ES8, rather than for battery swap stations, to accelerate deliveries of the SUV.
The company said at the time the decision would temporarily affect battery supply at some swap stations.
The EV maker delivered 40,000 ES8 units in 100 days and over 20,000 in December alone.
Nio compensated new ES8 customers affected by the constraint: those receiving deliveries by December 31 received a 400 yuan ($57) charging subsidy.
Bottleneck Easing
The battery pack additions are expected to ease supply constraints that have limited deliveries of Nio‘s best-selling model.
Founder and CEO William Li said earlier this month that battery supply had become the primary bottleneck limiting ES8 deliveries, adding that the constraint was expected to ease in January when production capacity would exceed vehicle output.
“When resources for the 102 kWh battery are in short supply, everyone needs to wait a bit,” Li said at an event in China, referring to the three-row SUV.
“Right now, one of the main bottlenecks for ES8 deliveries is batteries. The number of batteries that can currently be produced determines how many vehicles we can deliver,” the CEO added. “So even our delivery speed is affected.”
Nio Group‘s main battery suppliers are CATL — its partner, investor, and the world’s largest battery maker — and CALB.
