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With the market for vehicles rapidly changing, many repair shop and fleet owners are asking how they will thrive in the new economy. With batteries as the new engines, servicing and reconditioning hybrid and electric batteries is the answer.
Consider this: Hybrid electric vehicle sales in the US grew by 76% from 2020 to 2021 and hit a record high. Electric vehicle sales in the US grew by 83% from 2020 to 2021. In a recent poll, 56% of respondents are “likely” to buy an HEV or EV as their next car purchase. And, 40% of all car sales in Europe are now hybrid or electric. The trend will continue. To date, six major automakers have committed to 100% zero-emissions new car and van sales by 2040. These include GM, Ford, Mercedes, BYD, Volvo, and JLR.
And you are still changing oil, spark plugs, and brakes—all of which will be obsolete as the vehicle revolution accelerates. Adding a battery reconditioning line to your business will grow your business in a growing market segment and attract new customers. What's the ROI (Return of Investment)?
The numbers for shops.
Let’s run a simple example for small to medium-sized shops using the Toyota Prius, which is one of the most popular HEVs on the road with over 15 million sold. Assume there are 21 working days per month, and each day you process one battery with 30 battery modules. Within the month, you have processed 630 battery modules. Not all modules can be reconditioned. On average, about 65% of the modules can be reconditioned and 35% must be replaced. So, 65% of 603 is 409 modules. The margin per pack is $700, and over a month, you can process 14.6 packs for a total of $10,220 in profit.
The NuVant EVc-30 has a list price of $36,000, which means your break even on the equipment acquisition is three and a half months. A full-time EVc-30 is fully paid off in 3 1/2 months! After three months, this monthly revenue is all gross profit as the EVc requires no consumables and operating costs are minimal. Lease and financing options are also available.
"A full-time EVc-30 is fully paid off in 3 1/2 months"
The numbers for fleets.
For owners of large fleets using hybrid vehicles, such as taxi fleets, your ROI is even greater. Fleet vehicles are run much longer and harder than consumer vehicles. Most hybrid vehicle batteries have a 100-150k mile warranty and significantly degrade in performance at about 300k miles. Yet, it’s not uncommon for hybrid taxis to do over 500k miles in their first five years of service. Fleet owners are forced to buy new OEM batteries, which, given the depreciation of the vehicle, represents a huge percentage of the vehicle’s cost. By setting up a battery reconditioning facility to service the fleet, or purchasing reconditioned batteries directly from A3 Global, fleet owners often save 20-40% over a new OEM battery, which saves millions of dollars over time and avoids supply chain challenges. What’s more, the reconditioned batteries perform at or near the same level as a new OEM battery and come with a new warranty if purchased from A3 Global.
"Fleet owners often save 20-40% over a new OEM battery"
The equipment.
The NuVant EVc-30 is the world’s most popular battery hybrid vehicle battery reconditioning & cell balancing, with hundreds deployed worldwide. How is your business going to adapt to the vehicle revolution? Let us help you get started. To speak to one of our experts, contact +1.445.3GLOBAL or info@a3global.com
For more on the NuVant EVc-30 or to purchase remanufactured batteries, check us out by clicking here.
