Recently, the issue of "sky-high repair costs" for power batteries has sparked widespread debate among electric vehicle (EV) owners. Several media outlets have reported that when an EV needs a battery replacement, the cost of the new battery often exceeds 50% of the vehicle’s original purchase price, leading to confusion and dissatisfaction among consumers. As one owner put it, "While electric vehicles save on fuel costs, the cost of repair negates these savings," and "You can afford to buy an electric car, but not repair it."

Reports highlight that the phenomenon of high repair costs has been recurring since 2022, coinciding with a period of explosive growth in the global EV market, which saw sales exceed 10 million units that year. From 2022 onward, the stark contrast between the high cost of repairs and the promise of "electric is cheaper than fuel" has created a contradictory experience for consumers.

With advancements in battery technology, battery costs have decreased significantly, helping reduce the price of electric vehicles. At the same time, innovations in fast-charging and battery-swapping technologies have alleviated some of the consumer anxiety around energy replenishment. However, the issue of aftersales service, particularly for power battery maintenance, has become a critical factor influencing consumers’ purchasing decisions. This highlights a pressing issue: as electric vehicles rapidly gain market share, the aftermarket services supporting these vehicles have struggled to keep pace, particularly in the areas of power battery maintenance.

The High Price of Battery Replacement: A Barrier to EV Ownership

Currently, the cost of replacing an EV battery is notably high. For mainstream A-B class electric vehicles, replacing a battery pack (ranging from 40 kWh to 100 kWh) can cost between USD11,430 and USD21,430, approximately 50% of the car's original purchase price. In the case of A0-class vehicles, battery replacement costs can represent an even higher percentage of the vehicle’s value. For instance, in late 2023, a car owner shared their experience replacing an A0-class battery pack, which cost around USD4,290 for the battery alone, with a total of USD5,715 when factoring in other fees. This amount is enough to purchase a brand-new car.

For early adopters of electric vehicles, the problem is more than just the high cost of battery replacement. Due to model updates and battery technology iterations, many older vehicles are unable to access replacement batteries from current production lines. Even when replacement batteries are available, they may be one or two years old, leading to performance issues due to battery aging. These challenges have become a new frustration for EV owners and highlight the deficiencies in the EV aftermarket.

The Lag in Aftermarket Electrification Transformation

It is important to acknowledge that despite the rapid growth of electrification, the aftermarket for electric vehicles remains relatively new. According to data from the Ministry of Public Security, by June 2024, the number of domestic fuel-powered vehicles had reached 345 million, while the number of electric vehicles (including pure electric and plug-in hybrid vehicles) stood at 24.72 million. Despite the impressive growth in EV numbers, the fuel vehicle market remains dominant, particularly in the aftermarket.

Unlike fuel-powered cars, electric vehicles face significant differences in repair technology, aftersales service, and network coverage. One of the main reasons for the high cost of EV repairs is the lack of specialized technical talent in the aftermarket, compared to the well-established workforce in the fuel car sector. Additionally, EV battery packs often utilize highly integrated CTP (Cell to Pack) technology, making it difficult to replace individual cells without replacing the entire pack.

Another key issue is the relative lack of aftersales service infrastructure for EVs. While many EV brands operate their own official service centers, their coverage and density are often insufficient compared to the widespread networks of fuel vehicle repair shops. In terms of maintenance, EVs require specialized attention, particularly with respect to battery health monitoring and comprehensive vehicle circuit checks to ensure safety. The electrification of the automotive industry has highlighted the inability of traditional aftermarket models, developed during the fuel car era, to fully meet the needs of EV owners.

Battery Manufacturers Enter the Aftermarket

Given the pain points in the EV aftermarket, it’s no surprise that battery manufacturers are stepping in to fill the gap. Leveraging their expertise in battery technology and talent, these companies are quickly expanding their presence in the automotive aftermarket. Leading the charge, CATL (Contemporary Amperex Technology Co. Limited) has developed a comprehensive aftersales service network under the “Ningjia Service” brand. CATL has already opened its first flagship experience center and plans to expand its presence in major cities, recruiting partners to open franchise service centers nationwide.

As of October, CATL had established 668 aftersales service stations in China and 219 abroad. Ningjia Service offers a wide range of services, including basic battery maintenance, diagnostic testing, battery recycling, vehicle transactions, and personnel training. Additionally, the company has launched a mobile app to provide users with convenient services like battery health monitoring, online consultations, roadside assistance, and exclusive discounts.

Other battery companies, such as EVE Energy and REPT, have also started recruiting for aftersales service stations. REPT’s GREEN CTP battery pack has addressed common challenges in the aftermarket, such as maintenance difficulties and high costs. By replacing traditional adhesive-fixed methods with mechanical structures, the new battery design allows individual cells to be replaced, making repairs easier and more cost-effective.

The Impact of Battery Companies on the Aftermarket

Battery manufacturers entering the aftermarket not only bring advanced battery technologies and professional services to the table but also help address the pain points of EV aftersales repairs, significantly improving the user experience. Furthermore, these companies are playing a crucial role in driving the development and standardization of the EV aftermarket, ensuring that the entire electric vehicle industry chain continues to evolve.

For battery companies, expanding into the aftermarket provides an additional layer of support for the growing EV market, accelerating the transition to electrification. In the process, these companies are also enhancing their brand recognition, which could help increase their market share in the long run. By playing an active role in the development of the EV aftermarket, battery companies are not only supporting the electrification movement but are also positioning themselves as key players in the sustainable growth of the EV sector.