Over 10 Million NEVs to Exit Warranty in 2026, Pressuring Aftermarket Service Upgrades

Since 2016, Chinese passenger vehicle manufacturers have been required to provide a warranty of at least eight years or 120,000 kilometers for the core "three-electric" components of new energy vehicles (NEVs)—namely, the battery, motor, and electronic control system. In 2024, the first batch of vehicles covered under this policy has begun exiting warranty coverage, and it is projected that over the next three years starting in 2026, more than 10 million NEVs will cumulatively leave warranty. As aging issues with power batteries become increasingly evident, demand for post-warranty maintenance and repair of the three-electric systems is rising rapidly. Currently, the NEV aftermarket faces four major bottlenecks: high technical barriers to repairing three-electric systems; a dual-track authorization system that allows both OEM-authorized and third-party service providers; lack of unified industry standards for repairs and services; and insufficient coverage of professional service networks in lower-tier cities (Tier 3 and below). Compared with the single-track, one-stop after-sales model commonly adopted by joint-venture brands, this dual-track system fragments repair channels. Given that the three-electric systems account for approximately 70% of a vehicle’s total cost, this fragmentation further exacerbates maintenance challenges for consumers. Some have proposed adopting a “replace-only, no-repair” strategy for NEVs, but this approach could lead to significant social costs and resource waste. Industry experts believe that accelerating efforts to address these aftermarket service gaps is crucial to transforming NEVs’ sales advantage into sustainable industrial competitiveness.