THE North American trucking industry is grappling to find ways to lower total cost of ownership (TCO) for customers. Fuel, lease, repair and maintenance costs contribute to over half of a truck’s TCO and are the key components to be tackled.
Nikola Motor Company is offering a distinct value proposition with its Nikola One heavy-duty linehaul tractor unveiled December 1 and 2 in Salt Lake City, Utah. The electric class 8 tractor, backed by hydrogen fuel cell range extenders, will come with lower-than-market fuel prices, free maintenance, a compelling lease plan, and ultimately lower TCO.
The potential market impact of Nikola One is detailed in a new Frost & Sullivan analysis—Nikola Motor Company: A Disruptive Force in North American Trucking Industry (http://frost.ly/179), which reveals how the company plans to address key industry challenges and drive growth.
“Tightening emission and fuel efficiency standards will increasingly push all the major original equipment manufacturers in North America toward an electric-hybrid alternative,” said Marshall Martin, a Frost & Sullivan mobility industry analyst. “Nikola Motor is expected to pioneer the penetration of electric-hybrid trucks in the heavy-duty, long-haul segment, taking on big players in the heavy-duty truck sector.”
The innovative technology is expected to be bolstered by a seemingly robust business model that would see Nikola Motors lease out its trucks for a flexible monthly amount inclusive of lease payment, unlimited miles, warranty, maintenance, and fuel. The amount could change according to demand, customer requirements, competition, and business environment.
“Nikola One trucks are expected to offer annual savings of $21,127 on lease purchase over an average class 8 diesel truck,” Martin said. “For no additional cost, a new Nikola One truck could be traded every seven years or 1,000,000 miles. This business model and value proposition is set to drive growth in the market and enable Nikola Motor to gain significant future market share. However, rival OEMs, which are already well established in the market, have strong plans in place for this segment and could compete on an equal footing in the future with Nikola Motor.”