China EV market sees rise in aftermarket battery installations

A growing market for aftermarket battery installations is emerging in China as early electric vehicle (EV) models face battery degradation and expired warranties. Many vehicles from the 2016 expansion period are reaching the end of their battery life, particularly those used in high-mileage ride-hailing services.

These third-party services offer to extend driving range by 100 to 400 kilometers for approximately 15,000 to 20,000 yuan, a significantly lower cost than official manufacturer replacements. However, experts warn of serious safety risks, as these aftermarket batteries are not integrated into the vehicle’s original Battery Management System (BMS), potentially leading to fire or explosion risks due to unmonitored thermal and voltage fluctuations.

In response, the Chinese government is tightening regulations. New standards, including the ‘Lithium-ion Battery Code Regulation’ set for 2025, aim to track batteries from production to recycling. Additionally, upcoming 2026 regulations will require manufacturers to share technical information with qualified third-party repairers to improve the legitimacy of the service market.