EV repair costs average 1.7 times that of gas cars; nine ministries urge automakers to open up repair access

September 28, 2024 — A recent industry survey has revealed that the average repair cost for new energy vehicles (NEVs) in China has reached 1.7 times that of traditional fuel vehicles. More than 90% of core repair resources are tightly controlled by vehicle manufacturers, leading to a clearly unreasonable imbalance in the aftermarket repair ecosystem.

Root Cause: Limited Repair Capabilities

The core issue stems from the fact that only 2% of independent auto repair shops in China possess the full capability to repair NEV three-electric systems (battery, motor, and electronic control). In response, nine government departments, including the Ministry of Commerce, have jointly issued a directive requiring automakers to gradually open up repair technology authorizations and implement an industry-wide "repair instead of replace" after-sales policy, aiming to reduce vehicle owners' maintenance costs.

Shocking Repair Costs: A Case in Point

A NEV owner recently shared an eye-opening repair experience on social media: replacing just one exterior rearview mirror cost nearly 6,000 yuan. The owner lamented that while many electric vehicles are affordable to purchase, the cost of repairs when something goes wrong is simply unaffordable for ordinary people.

According to the 4S shop's inspection report, the rearview mirror integrated over a dozen complex functions, including electric adjustment, auto-folding, mirror heating, and blind-spot monitoring. The failure was caused by damage to internal precision components. The after-sales solution offered no option for partial disassembly and repair — the entire mirror assembly had to be replaced. Combined with costs for cross-regional allocation of proprietary parts, the total quote exceeded 5,700 yuan.

Industry-Wide Problem: "Replace, Don't Repair"

Industry insiders point out that the overall repairability of NEVs is extremely poor, and high repair costs are an undisputed reality across the sector. A widespread unwritten rule in the NEV aftermarket is "replace only, no repair," directly driving up routine maintenance costs for ordinary vehicle owners.

Technology Driving Up Costs

Many industry analysts note that NEV manufacturers, in their pursuit of competitive differentiation, have continuously added advanced intelligent components. From high-level autonomous driving assistance systems to full-stack smart cockpit interactive devices, a wide range of cutting-edge customized intelligent parts are being mass-produced, further raising the baseline cost of vehicle components.

While these advanced proprietary components offer driving experiences that traditional fuel vehicles cannot match, they also mean that when failures occur, the cost of replacement parts naturally rises. These technologies carry high upfront R&D and custom production costs, and some customized parts have lower production yields than standard industrial components. All these costs are ultimately passed on to the repair stage, meaning that any non-cosmetic core component failure in a NEV starts from a much higher cost baseline than in fuel vehicles.

Manufacturer Monopoly Worsens the Situation

The monopolistic control of resources by automakers further inflates repair costs across the industry. Most NEV companies operate a closed-loop model of "vehicle sales + after-sales repair," tightly controlling repair data, specialized diagnostic equipment, and core parts supply channels. This creates monopoly barriers that ordinary third-party repair shops find nearly impossible to break.

On one hand, manufacturers are reluctant to share vehicle repair data and diagnostic permissions with third-party shops. Even if a third-party shop has the hardware capability to perform repairs, it cannot access fault codes, calibration parameters, or other critical information needed for efficient and accurate repairs.

On the other hand, supply channels for core components are entirely controlled by manufacturers. Third-party shops have almost no legitimate way to source original parts and must resort to aftermarket parts of inconsistent quality. Some automakers also impose restrictive clauses — such as "private battery disassembly voids the entire vehicle warranty" — to indirectly limit owners' freedom to choose third-party repair services.

Profit Shift to After-Sales

More concerning is that as profit margins on vehicle sales continue to shrink, many automakers have turned to after-sales repair as a new core profit source. By inflating parts pricing and mandating full assembly replacements for faulty components, they generate high margins. This business model — offering discounts on vehicle sales while recouping profits through repairs — essentially treats vehicle owners' routine maintenance needs as a dedicated profit reservoir.

Government Intervention

The nine-government-department directive to open up repair authorizations and promote "repair instead of replace" directly targets the core problem in the NEV aftermarket. Only by gradually breaking manufacturers' monopolistic control and allowing third-party repair shops to compete fairly in the aftermarket can the inflated repair costs be brought down — relieving vehicle owners of the burden of expensive repairs.