Almost all tech experts in the field of automobile opine that electric vehicles are the future of road transport. In the last two decades, we have seen how gradually EVs have taken a small space in the automobile sector.
By 2025, it is expected that the United States will have more than 6 million units of EVs which at present is close to 2 million. The rise of Tesla and other such companies have boosted the growth of EVs.
Starting from hybrid cars that have both fossil fuel and electric batteries to all electric vehicles, the world has reached much ahead in electric vehicle technology and execution. Now the issue lies only on how to make EVs more affordable and convenient to people in terms of issues like mileage, battery charging and maintenance.
Estimates show that EVs will constitute 10% of the total automobile market by 2025, 28% by 2030 and 58% by 2040. In 2020, 300000 units of EVs were sold in the USA which has a market of 0.65% presently.
With almost all estimates predicting the inevitable rise of EVs, there are also ancillary businesses that will prop up related to electric vehicles. They have large potential given the dominance of EVs in times to come.
Here is the list of ten businesses related to electric vehicles that you must consider
1. Electric Vehicle Battery Recycling
The biggest recycling market of EV batteries is in China. EVs generally use lithium ion batteries with cobalt as metal. The average life of such a battery is 10-20 years depending on various factors.
Close to 40, 000 batteries were recycled in 2018 globally. The figure will rise more as the use of EVs rises all over the globe. There is a lot of potential in recycling such batteries. It has to do with environmental factors, cost savings, source of employment and earnings for many.
Many governments have incentivized this recycling business and actively support it. The next 10 years are critical for this business. You can become part of this business by starting your own recycling business.
It is one of the most profitable businesses if one has proper strategy, network and market to exploit. The USA has 17 billion dollars of market dealing with battery recycling.
2. Mobile App Based Charging Stations
Two parts collaborate here to form a business. First is the mobile app and second is the charging station. It is not necessary for you to get into both the businesses. You can just create an app that is smooth and connect all the charging stations nearby.
The model is similar to that of nearby hotels, shops, and eateries. You just need to create an app, network with all the charging stations around you and start your business. You can earn the in between commission when a customer charges his car from the particular station.
In the coming future, this tech will be much popular and this is the right time to exploit the business opportunity lying ahead. One needs to work on efficiency, smoothness, utility and service of the app. Research more and you can do it.
3. Fast Charging Unit Installation Service at Home
Electric Vehicle Supply Equipment or EVSE comes in two levels; Level 1 and Level 2. Level 2 EVSE gives fast charging in comparison to level 1. Level 2 uses 240 V plugs giving 50-60 miles of run per hour of charging suitable for all EVs.
One can open a business for installing in-home fast charging devices including their repair and maintenance. Since the use of home charging will become obvious, given cars will remain parked after evening.
Secondly, home charging is convenient and cheaper in comparison to stations. Since there’s an inevitable rise of EVs in times to come, the future for such business is very bright. One needs to do right and extensive research and then invest in the business.
You will require supply of EVSE from the required company along with a group of electricians who will install the EVSE. Not a very complicated business yet has tremendous returns.
4. Electric Vehicle Rental Service
Just like any other renting business, one can also start electric vehicle renting services to rent electric vehicles. It will be not much different from other vehicle renting but just that charges will be incurred based on miles covered.
You can also build your own mobile app in order to build a platform from where you can target your customers. People generally rent vehicles for outing and business purposes. You can also render driver service as well with the car.
One will have to make networks with people who will give their car for rental services. You can earn the commission and difference earned between the money you pay from whom you have rented the car and the amount your customer paid for renting the car.
You can obviously offer different categories of car for different purposes with some attractive packages for your customers. Build your marketing strategy and you will do good.
5. App Based Electric Vehicle Mechanic Services
People owning electric vehicles will also someday need a mechanic. Since EVs are new in the market, getting the qualified mechanic will always be a task for the near future. You can build an app that offers clients to locate a mechanic in their neighborhood.
They can either go to the mechanic service station or they can book a visit of the mechanic to their location. You can charge based on the circumstances and standard rate prevalent for the time being.
You need to advertise and network with people involved in EV business. Advertise at places where you will find mechanics. Ask them to register with your portal and become a certified mechanic.
Ensure quality standard, punctuality and professionalism in order to build your business because luxation in service can lead to loss of customers.
6. Portable Power Bank of Emergency Charging
You can become a supplier, dealer, distributor or retailer of power bank batteries used for emergency charging in electric cars. Manufacturing them can also be an option but it can become too complex and challenging requiring lots of capital.
You can remain focused on dealership and retail sales as in the next few years you will be able to build a good business out of selling such products like portable electric chargers. You can also network and collaborate with electric vehicle dealers to whom you can directly supply your products as most customers would buy the charger at the time of purchase of car.
7. Solar Panels for Charging
You can also render solar panel installations at home for your customers who own an electric car. The cost of solar panels is falling rapidly and is highly incentivized by the government.
There are many aspects involved in this like the size of battery, the number of panels required to charge your car effectively, other accessories and the whole cost. Research on the business and try to find an effective charging solution for your customers.
Try to minimize the number of solar panels and cost in order to attract more customers. Because solar panel charging would save electricity which will save your bill and money involved.
8. Electric Vehicle Accessories Store
Electric Vehicles are a bit different from traditional vehicles that run on fuel. They have some different parts and accessories installed. In order to replace the older one, you will need a similar part like the old one to replace.
With the advent of electric vehicles, the business of accessories will also perform well as people will need those accessories now and then for replacement. Charger, adapter, portable batteries, jack, charging cable, etc. are some common accessories.
Accessories will also include the inner core parts of the vehicle installed that may require repairing or replacement from time to time. You can start your business by selling all such accessories with replacement and repairing services.
9. Electric Car Electrical Workshop
Car workshops are those from where you get your car services, repaired and some parts replaced with proper cleaning and care. One can open such a service workshop exclusively for electrical cars.
Since the market for electric cars is small but growing, there are only few service stations, mostly that of car dealers. Thus there is a wide possibility of exploring and expanding your business without any competition.
In the next five years, you will get competition and therefore starting at this point will give you leverage. You can hire mechanics, have accessories and car parts along with expertise to offer services.
10. Car Wash Business
There won’t be any major difference between a normal car wash and a wash for electric cars. You can open a general car wash for your customers in a nearby location which is on a road with regular traffic.
You can offer different types of car wash services like automatic one, full car wash including interior, automated car wash using conveyor belt and many others. One needs to build a car wash bay point with installation of conveyor belt, cleaners, washing pump, etc.
You will require washing staff, accountants and attendants for smooth functioning of your car wash business. Do due diligence and find a strategic location which is affordable and where you can get regular customers.
One can open a set of services related to electric cars. It can not only be limited to one service at a time but an array of similar services. Like having an EV workshop along with mobile app mechanic services, accessories, charging points, etc. will help you in your further growth.
Do due diligence, research, proper planning, write a business plan, set the required budget and then execute, there is a big market lying ahead for you to capture.