Breaking the Monopoly in Electric Vehicle Maintenance: Challenges and Opportunities Ahead

The monopolistic control over electric vehicle (EV) repair services raises critical questions about its future. The new energy vehicle repair industry is currently facing a talent shortage and technological monopolization, which leads to increased costs being passed on to consumers, ultimately hindering fair competition and healthy development within the sector.

By 2025, the value of maintenance and repair services for new energy vehicles is expected to exceed 80 billion yuan, with the independent aftermarket poised to create a market space worth over 100 billion yuan.

However, the demand and supply in the EV aftermarket currently do not align. Automakers and suppliers of the three core components (battery, motor, and electronic control) are lagging behind in facilitating open access to technology and the circulation of spare parts.

Experts believe that opening the EV aftermarket requires coordinated efforts from the government, industry, and consumers to establish a highly specialized and well-managed service system, as well as to build the capacity for spare parts supply.

Independent repair businesses must innovate to seize opportunities, enhance their technical capabilities, and improve service quality to transition from survival challenges to growth opportunities.

In stark contrast to the substantial talent gap in the new energy vehicle sector, independent third-party EV repair services are often labeled as a “high-risk industry.” This is due to instances where non-authorized EV technicians have been taken to court by automotive brands. Behind this conflict lies the absolute control that new energy automakers have over the aftermarket service ecosystem. From core technical data to the supply of original parts, this monopolistic grip not only stifles independent repair businesses but also shifts high costs onto consumers, ultimately repressing normal competition and the healthy evolution of the entire industry.

As we look towards 2025, when the penetration rate of domestic new energy vehicles is expected to surpass that of traditional fuel vehicles, one must ask: when will the monopoly over EV repair services be broken?

Struggling Independent Aftermarket Services

Since 2016, China has implemented an 8-year or 120,000-kilometer warranty policy for core components of new energy vehicles. By 2024, the first batch of vehicles covered under this warranty will begin to exit the warranty period. This is just the beginning, as more “warranty-exiting vehicles” continue to hit the roads. Many owners, even those still under warranty, report feeling the financial burden when replacing core components, as seemingly minor battery failures can lead to repair costs soaring to tens of thousands of yuan, leaving owners lamenting that they can “afford to buy but not to repair.”

Industry data indicates that by 2025, over 3 million new energy vehicles will no longer be under the original manufacturer’s warranty. This significant figure implies that the demand for independent aftermarket services related to the three core components will see explosive growth, potentially leading to a market space worth over 100 billion yuan. This enticing market should ideally herald a new dawn for independent repair businesses. However, the reality is harsh.

Wang Hao, founder and CEO of Bolan Automotive Consulting (Qingdao) Co., stated that currently, there is a mismatch between supply and demand in the EV aftermarket, primarily because new energy automakers and suppliers are slow to open up technology and allow for the social circulation of spare parts. Some manufacturers exert strong control over technology, parts, and service channels, creating de facto monopolistic barriers that prevent the development of a socialized service capability in EV aftermarket services.

Since last year, there have been numerous cases regarding unauthorized EV repairs, where independent technicians have faced legal actions for unlocking restricted battery packs or posting repair videos online. Automakers maintain a tight grip on technology and parts, making it challenging for independent repair shops to access necessary resources. The rapid evolution of EV technology further complicates matters, as independent technicians often struggle to obtain critical technical information and training, leaving them unprepared to tackle complex electrical systems and intelligent control system failures.

In terms of parts supply, automakers impose strict restrictions on the distribution of original components, meaning independent repair shops either struggle to procure compatible parts or are forced to obtain them at exorbitant prices from unofficial channels, keeping their costs high. Additionally, automakers often leverage clauses about “unauthorized repairs affecting warranty” to pressure consumers, resulting in a scarcity of customers for independent repair enterprises.

The Impact of the Aftermarket on the Development of Automotive Power

At the 2025 China Electric Vehicle Forum held in Beijing this March, Hu Xiaodong, president of Tuhu Car Maintenance, stated that the new energy vehicle industry has completed the accumulation of “quantity” and is now transitioning to a “qualitative” change, with the EV aftermarket being a crucial element in China’s journey towards becoming a powerhouse in this sector.

To enhance the quality of after-sales services for new energy vehicles, in 2023, the Ministry of Commerce and eight other departments jointly issued the “Guiding Opinions on Promoting High-Quality Development of the Automotive Aftermarket,” which outlines seven policy measures. The first two measures focus on optimizing the automotive parts circulation environment and promoting the development of standardized, transparent, and efficient part circulation models.

The guidelines emphasize the importance of improving automotive repair services, accelerating the establishment of technical standards for EV repairs, strengthening after-sales training, developing green repair practices, and enhancing the digital service capabilities of repair services to better support the development of the new energy vehicle industry and protect consumer rights.

Wang Hao noted that some of the points mentioned in the guidelines are already being implemented. For example, the National Market Supervision Administration and the National Standardization Committee are working on drafting and implementing standards for automotive repair, while the China Automotive Maintenance Industry Association has promoted the establishment and implementation of professional skill evaluation standards for EV repairs. Training efforts are also underway, with the Ministry of Transport’s vocational qualification center working on certification for the “Transportation Professional Ability Evaluation Certificate” (for EV inspection and repair).

Specialized after-sales service companies, such as the “Electric Workshop,” have begun to develop a professional after-sales service guarantee system to meet market demands. However, it is essential to acknowledge that amidst the electrification wave, many traditional after-sales companies are actively enhancing their capabilities to service new energy vehicles, accelerating their transition to hybrid service models, forming strategic partnerships with EV manufacturers, introducing advanced diagnostic equipment, and even establishing dedicated service outlets.

Despite these efforts, the inability to gain technical support from automakers, access core diagnostic systems for EVs, and obtain critical data on battery management and electronic control systems, along with a lack of systematic training, leaves many independent repair businesses lacking the professional capabilities and consumer trust needed to thrive in the EV repair market.

Chained by Profit and Technical Limitations

Given the increasing maturity of the new energy vehicle industry and the growing number of out-of-warranty users, is there a possibility that automakers will gradually loosen their monopolistic control over the technical and resource aspects of EV repair services, thereby opening doors for independent repair businesses?

Senior expert in EV after-sales services, Wang Ligang, believes that while many automakers continue to provide after-sales services for out-of-warranty vehicles, these services often come at a higher price than for vehicles still under warranty. Companies operating direct sales models also keep track of out-of-warranty vehicles and offer additional services, such as on-site assistance and remote diagnosis, to retain customers.

“From the current development perspective, it seems that in the short term, EV manufacturers are unlikely to open their after-sales service systems,” he stated. “As of now, most EV manufacturers are not in a favorable profit situation, making it unlikely for them to relinquish any of their after-sales service profits.”

From a technical standpoint, the complexity and safety concerns surrounding the three core components, particularly batteries, make it improbable that manufacturers will open up these areas. Battery repairs are not simply about disassembly and module replacement; they require specialized procedures such as “live operation,” “module measurements,” and “balancing module distribution,” all of which necessitate systematic training and certification to ensure safe handling.

Indeed, there have been instances where an independent repair shop in Beijing was taken to court for servicing a certain model of the Seres brand. Feedback from vehicle owners indicates that this brand cancels warranty and battery swap rights if repairs are not conducted at authorized locations. Moreover, some brands require separate permissions for EV repairs, resulting in owners needing to travel long distances to authorized service centers for even minor issues. These trends suggest that automakers currently have no intention of opening their after-sales services.

Wang Hao believes that most manufacturers do not prioritize opening their after-sales service systems for two main reasons: the rapid technological changes in EV products lead to high fault rates, while many after-sales service businesses lack the technical expertise and service experience to adequately handle these challenges. Additionally, setting up and operating a specialized EV after-sales service network requires significant investment and a corresponding scale of service demand, which is challenging to achieve given current vehicle sales volumes and the significant regional disparities.

“As more businesses enter the EV repair market, it is likely that repair costs will decline, but the extent of this decline mainly depends on the smoothness of spare parts supply channels. If the supply channels for EV parts become more open and diversified, we can expect significant reductions in repair costs,” Wang Hao stated.

Breaking the Monopoly: Learning from Traditional Fuel Vehicles

In contrast, traditional fuel vehicle after-sales services have made significant strides in openness. Policy-wise, back in September 2014, the Ministry of Transport and ten other departments mandated that authorized companies should be allowed to sell original parts to non-authorized repair businesses or end-users, breaking the automakers’ monopoly on original parts circulation. Many automakers responded positively, with brands like Mercedes-Benz launching platforms for trading original parts, and Shenyang Automotive collaborating with JD Auto to allow original parts to be purchased through JD’s platform, while also authorizing JD service shops for after-sales services.

In terms of parts supply, numerous automakers ensure the availability of original parts even after discontinuing fuel vehicle production, such as BYD. This open model has provided independent repair shops with more channels to procure parts, giving consumers a wider range of repair options and enabling them to enjoy cost-effective, convenient, and transparent after-sales services. The traditional fuel vehicle aftermarket is thriving.

Will the openness in the traditional fuel vehicle aftermarket set a precedent for new energy vehicles? Wang Ligang believes that the openness of the after-sales service systems in traditional fuel vehicle manufacturers relies on the gradual improvement of laws and regulations that compel manufacturers to progressively open up spare parts, repair data, and repair channels. The large market share of fuel vehicles also allows for profitability while meeting diverse consumer needs.

Overall, the experience from the traditional fuel vehicle aftermarket can provide valuable insights for the development of after-sales services in the new energy vehicle sector. Although the current state of the new energy vehicle market does not fully meet the conditions for openness, the core issue remains the survival of EV manufacturers. However, as the number of new energy vehicles on the road increases and the pressure on manufacturers to generate profits decreases, it seems inevitable that the opening of spare parts, repair information, and service channels will become a trend.

Nevertheless, the challenges to openness extend beyond manufacturers’ willingness to concede. The entry barriers for third-party repair companies also play a crucial role. The qualifications of repair businesses and the professional certifications of technicians require further legal clarification. Currently, the only qualification for EV maintenance personnel is a low-voltage electrician certificate, which is insufficient to meet the demands of the new energy vehicle after-sales service sector. As EVs become increasingly intelligent, the technical requirements for repair personnel are evolving, necessitating not only mechanical and electrical knowledge but also proficiency in communication and computer technologies.

Furthermore, the hardware conditions of repair businesses must also be specified, particularly safety measures such as standards for live working conditions (insulating flooring, personal protective equipment, operational standards) and fire and explosion prevention facilities, all of which require clear regulations from relevant authorities. Therefore, whether the new energy vehicle aftermarket can be opened does not solely depend on manufacturers’ willingness, but also on the overall development of this market. Only when various issues meet objective demands will barriers be broken, and the market opened.

Exploring Keys to Breaking Barriers: Self-Innovation and Collaborative Governance

Indeed, the road to opening after-sales repair services for new energy vehicles is fraught with challenges, and independent repair businesses must embrace opportunities through self-innovation. The technical characteristics of new energy vehicles impose higher thresholds for after-sales repair, demanding rigorous requirements for the technical reserves and talent quality of repair firms. For independent repair businesses to overcome obstacles, their top priority must be to build a professional technical team. This can be achieved by collaborating with vocational schools and training institutions to cultivate skilled professionals in EV maintenance, as well as providing existing employees with regular training to ensure they master the latest repair technologies and industry standards.

Additionally, businesses need to invest in advanced equipment, such as battery testing devices and electronic control system diagnostic tools, to meet the repair needs of new energy vehicles. Enhancing service quality and management levels is equally crucial. Independent repair businesses should establish standardized service processes, ensuring that every step from fault diagnosis to repair completion is organized and transparent. Implementing a digital management system can help visualize service processes and build customer trust.

Furthermore, establishing a comprehensive customer service system to promptly address feedback is an important way to enhance competitive edge. Industry insiders widely agree that amid increasing market competition, independent repair businesses must actively enhance their technical capabilities and optimize service quality to firmly establish themselves in the evolving landscape of the new energy vehicle aftermarket.

Wang Hao also emphasizes that to establish a socialized service system for new energy vehicles, joint efforts from the government, industry, and users are essential. First, the government must advocate for legislation that requires automakers to open up technical resources and spare parts supply, while also controlling and supervising misleading practices related to purported lifetime warranties. Second, the aftermarket services need to continue developing a highly specialized and well-managed service system capable of providing safe and reliable support to new energy vehicle users. Additionally, consumers should learn to differentiate between manufacturer advertising and actual service, understanding their consumer rights under relevant automotive regulations to avoid falling into “gentle traps” set by some companies.