Electric Batteries May Be More Expensive to Replace Than Buying a New Car? “Ningde Times” Breaks Through, New Energy Market Opens Up for a Billion-Dollar Cake Battle
“The used car value is 16 million yuan, and the battery replacement price is 22 million yuan!” With the increasing number of new energy vehicles in circulation, similar news stories like “replacing batteries costs more than buying a new car” are no longer rare.
According to the Automotive Research Institute's study on the automotive battery system index, among the 59 pure electric new energy vehicle models, the average value of battery replacement is 50.96%. In post-sales maintenance, a 20-million-yuan new energy vehicle has a battery replacement price that exceeds 10 million yuan.
“The dynamic battery occupies about 40% to 50% of the overall value of the vehicle, is the key point of after-sales service, insurance compensation, and technical maintenance,” explains Wang Hao, founder of Carpo Automotive Consulting Services (Qingdao) Co., Ltd. regarding the high cost of battery replacement.
Apart from price, the complexity of the battery itself is a major issue. As it involves multiple disciplines such as mechanics, physics, chemistry, and electrochemistry, the technical threshold is relatively high. To solve the problem of battery replacement, Ningde Times and other battery manufacturers are setting up layouts, while third-party automotive after-sales service providers like Tuhu Car Service and Tianmao Car Service are also seeking to obtain authorization for three-electric maintenance.
Battery Replacement Trapped in "High Price" Dilemma
“The price of replacing the battery is not only high but also has a certain logic,” said Li Wei, general manager of Ningde Times' quality system and after-sales business department. For example, if the production line for this battery pack has been cut off, it will be necessary to set up a new production line, which will increase costs.
As the market demands higher energy density of batteries, CTP (Cell-to-Package) integration is increasing, making it more difficult to repair and replace batteries. Once an issue arises, it may be necessary to replace the entire battery pack, which can trap the battery in a "replace but not repair" maintenance dilemma.
To address the concerns of car owners, manufacturers often provide “eight-year warranty services.” However, these services usually come with various limitations, such as usage frequency and after-sales scenarios, and are only applicable to the first owner. According to Li Wei, Ningde Times' return-to-factory center is specifically designed for some “out-of-warranty” scenarios.
Authorized Maintenance Challenges
Technical challenges aside, the main issue is the authorization required by manufacturers. As batteries are critical components of vehicles, they require standardization and consistency in maintenance and repair. However, this also means that only authorized service providers can access the necessary technology and spare parts.
Source: Zhang Jian, Photographer for Every Day Economic News
“Manufacturers often provide short-term (5-6 years) or long-term (8-year or lifetime) warranty policies, which means that battery manufacturers must also provide the same period of warranty coverage. As a result, component suppliers have become the main role in fulfilling warranty obligations.”
“Only authorized service providers and manufacturers can meet the factory's requirements for standards and technical support,” Wang Hao said.
In this context, Li Wei also discussed Ningde Times' layout of NINGDE SERVICES. “Because batteries are originally produced and supplied by Ningde Times, if there is a problem with the manufacturer's battery, it belongs to the original factory after-sales,” Li Wei said.
Players in the New Energy Market
Despite the challenges, the market is still attractive. As new energy vehicles gradually enter the post-sales peak period, a large number of “off-warranty” vehicles will soon flood into the after-sales market, making it an attractive blue ocean for various players to explore.
According to the report by Saeed Consulting, in 2024, China's new energy vehicle after-sales market exceeded 19 trillion yuan, and is expected to break through 39 trillion yuan in 2027, with an average annual growth rate of 25%.
Apart from market scale, government and industry policies are also driving the rapid upgrading of new energy after-sales markets. In March 2025, the “Regulations on the Safety Performance Inspection of New Energy Vehicles” came into effect for the first time, incorporating battery systems into annual inspections to drive detection demands.
“New energy vehicle maintenance is indeed a professional requirement that needs advanced technology, massive data, and rich case studies. Currently, new energy after-sales markets are building all standards related to lithium-ion battery replacement, diagnosis, and other services,” Li Wei said.
Except for these challenges, Li Wei also revealed that Ningde Services is in talks with insurance companies to develop more insurance products suitable for new energy vehicles, such as battery guarantees, battery degradation, and extended warranty services.