6 minute read
Conversion Revolution for Heavy Vehicles
from Future Auto NT 2024
by Boylen
Jared Archer, Managing Director of Archer Heavy Equipment Repairs & Archer Retail Group, is pivoting his heavy vehicle diesel repair business now to avoid being “left behind”.
Archer Heavy Equipment Repairs has partnered with NSW battery electric solution provider Janus Electric, becoming that company’s first authorised dealer in SA to convert diesel trucks to battery electric systems.
But it’s not a decision he made lightly.
“As we all know, if you don’t move with the times, the times don’t stop for you,” Jared said.
“We wanted to be an early adopter of the technology – we wanted to be a market leader.
“Obviously our industry is pretty flooded with different brands and dealerships, so opening another dealership with the only point of difference being “brand” seemed like a dead end.
He said it was an opportunity to launch not only a different brand but an entirely new industry locally, as well as having the opportunity of being a leader in the country for battery electric technology.
“We saw battery electric as a feasible option. When we learned about Janus Electric’s business model and the way we could change batteries, we got a little excited and thought people would be able to implement that into their business straight away, versus waiting for charging infrastructure.
“We then approached Janus and after carrying out their due diligence, we were selected as the Adelaide dealership for the conversions to take place from our workshop.”
“We’ve been on board assisting with the conversions for the last few years.”
Financial case
Janus provides Jared with the batteries and the conversion kit and his business does the rest.
The conversion is usually completed within four weeks at a cost of $175,000.
It sounds like a large investment but it’s just a fraction of the price of a new battery-electric vehicle which costs anywhere between $750,000 to $900,000.
Once a vehicle is converted, batteries can be swapped at designated Janus recharge stations for $125.
Bigger companies have the option to purchase their own recharge stations but the public stations are far more economical for smaller companies and owner operators.
“Your fuel costs are reduced almost exponentially, which for an owner-operator is huge,” Jared said.
“They fall by about 30 per cent. So if you’re running a fleet of trucks and you’ve got a fuel bill of $100,000 a month as a mid-size operator, to have an extra $30,000 in your pocket every single month is massive. This doesn’t factor in your reduction in maintenance costs either.”
The range of the batteries varies greatly depending on the truck’s size, weight, how it is driven, as well as any prevailing headwinds or tailwinds. The same variables go for diesel too.
But a battery typically delivers between 300-600 km before it needs replacing.
Janus’ battery network remains in its embryonic stages, with only about 25 trucks on the road, all still restricted to short runs.
As the network expansion is rolled out, Jared said it would “help to decrease that ‘range anxiety’ which people have with anything electric at the moment.
“But I don’t think that’s an issue for trucks as much as it is for cars.
“Unlike cars, trucks generally have preset routes. You can plan your routes easily and together with Janus’ live analysis and infrastructure, you can find out where and when the batteries are available and when they will be fully charged. It’s all smart integrated.
As an example, a 700 km route might require two battery swaps en route, each taking four minutes. As Jared said – “like the blink of an eye; you’re in, you’re out.”
Robotics
Charging stations are presently staffed with a forklift working the changeover but already, those days are numbered.
“When the robotic chargers start going in, people won’t know what’s hit them.
“When companies start seeing the profits they are missing out on running diesel and they start getting comfortable with the idea of battery electric, any business owner would be silly not to make the switch.”
Business owners who are sceptical may hesitate to commit and invest in batteries, but Jared is firmly convinced that this is just the beginning.
“I am a diesel mechanic and automotive electrician. While diesel engines are my main focus and concern, it’s important to note that electric motors, despite causing some apprehension, have actually been around for a longer time than diesel motors.”
Thomas Davenport is credited with inventing the electric motor in 1834, predating the diesel engine by 59 years.
“The issue people face is their resistance to change, but I believe that mindset is outdated.
“In this generation, most people are familiar only with diesel engines; they associate them exclusively with trucks and anything requiring substantial torque. I may not witness it in my lifetime, but as a forward thinker, I see a future where diesel might not exist. Diesel has reached its pinnacle, and further improvements seems unlikely.
“Those familiar with market dynamics understand the importance of not investing at the market’s peak. You want to ride the upward wave, not catch it on the way down from its peak. Now, battery electric vehicles (BEVs) are at the start of this wave, and their advancements are inevitable.
“So, for us, it would be unwise to not establish a business in this direction.”
Emerging generation
“The choice is either to embrace change or face the risk of perishing,” Jared said.
“Similar to how Blockbuster overlooked Netflix, Nokia overlooked Apple, and Kodak overlooked the digital camera, these major corporations failed to recognise that change is unavoidable.
“Despite our confidence in understanding how the world operates, in 30 years, it will be our children who are in charge.
“Their disregard for diesel is not based on its functioning or history; instead, they view it as impractical because of the pollution it causes on our planet.
“I’ve noticed my kid’s asking questions that never crossed my mind when I was their age.
“Their mindset is different, and it won’t be too long before they’re the ones making decisions, leading to a shift where outdated practices like diesel may fade away completely.”
Tipping point
“This change is happening gradually for us. Even though most of our work still revolves around diesel repairs, we have secured commitments from Diamond Bros and Symons Clark in Adelaide for these trucks, with Diamond Bros’ truck set to be delivered shortly.
“Once these guys are up and running, everyone else won’t have a choice.
“The choice is between letting these companies boost their bottom line, leading to increased size and industry dominance, or becoming part of the movement. In my view, joining is unavoidable, so we predict a significant increase in demand, keeping us fully booked for up to two years.”
