Nine Departments Unveil New Policy to Break EV Repair Monopoly

Recently, the Ministry of Commerce and eight other government departments jointly issued the "Notice on Several Measures to Cultivate and Expand Automotive Aftermarket Consumption," unveiling 17 specific initiatives across six key areas, including vehicle modification and maintenance services. Among these, five targeted regulatory measures directly address monopolistic practices in the new energy vehicle (NEV) repair sector. For years, NEV manufacturers have restricted third-party repair shops from accessing diagnostic data and repair capabilities by controlling diagnostic protocols for the "three electric systems" (battery, motor, and electronic control), employing encryption technologies, and limiting access to specialized equipment. As a result, vehicle owners have been forced to rely exclusively on authorized 4S dealerships, often paying high prices for complete component replacements instead of opting for more affordable repair alternatives. Moreover, some automakers have tied restrictions on repair channels to exemptions from statutory warranty obligations, further exacerbating the problems of "difficult and expensive repairs." The new policy explicitly mandates the following: - Safeguarding consumers’ right to freely choose repair services and prohibiting automakers from imposing restrictive clauses; - Requiring automakers to grant third-party repair providers access to essential technical information and diagnostic tools; - Promoting a "repair-over-replacement" approach to reduce maintenance costs; - Establishing unified national standards and operational guidelines for NEV repairs; - Exploring a battery-separation insurance mechanism to alleviate owners’ financial burdens related to repairs. As of now, China’s NEV fleet exceeds 43 million units, yet the aftermarket has long remained dominated by original equipment manufacturers (OEMs). The implementation of these new measures is expected to reshape the automotive aftermarket landscape, creating growth opportunities for chain repair platforms, specialized NEV service centers, and auto parts distributors. Enterprises with high standardization levels and mature service systems will gain stronger competitive advantages, while smaller automakers that have relied on aftermarket monopolies for profits will face significant adjustment pressures. Additionally, the policy also covers niche segments such as vehicle customization and recreational vehicle (RV) camping, with initial rollout planned in 40 pilot cities before nationwide expansion. This move marks a strategic shift in China’s automotive industry—from scale-driven expansion toward high-quality operations—and is poised to unlock trillions of yuan in untapped aftermarket consumption potential.