February 1, 2022
Electric engines have fewer moving parts and, thus, less wear and tear.
Overall, aftermarket maintenance costs for battery electric vehicles are expected to be approximately 40 percent lower than for conventional combustion engine vehicles.
This phenomenon, however, is not strictly a profit pool “shrinker” for aftermarket players, as opportunities exist in an investment in skill sets, offerings, and messaging that match the growing call for sustainability.
A battery failure does not always mean end of battery life - Batteries can also have failures and they can be repaired or replaced based which type of defect it is
• Capacity fade occurs naturally with use and time. Capacity loss can be reversed on nickel-based batteries affected by memory; some lead acid with sulfation can also be improved.
• Resistance increase is common with certain types of batteries such as nickel-based batteries.
• Elevated self-discharge reflects possible stresses endured in the field.
• Auxiliary parts defects are non battery related issues such as electronics, wiring and hardware which need to be replaced or repaired depending on defects
• Software defects are also non battery related issues such as coding bugs, or faults which impact battery optimisation algorithms
Different companies have varying approach to aftermarket service for batteries
• Batteries as Service is a new business model, based on supply of a constant power rather than selling battery and replacement modules periodically
• Nio (Chinese EV manufacturer) currently has an approach to replace charged and serviced batteries at replacement stations avoiding the lengthy charging process and simplifying battery service for its customers
• Tesla on the other hand has an extensive charging network and asks the battery to be replaced after 400,000Km. Tesla also used to collect batteries for disposal but has given up this practice
Rather than discarding a pack, ingenious entrepreneurs are discovering business models to grant retired batteries a second life such as Battery Matching Service, Battery Refurbishment and novel Business models in Battery maintenance.
