Chinese electric vehicle industry warranty and service risks

Chinese electric vehicle (EV) manufacturers have utilized lifetime warranties for core components, such as batteries and motors, as a competitive strategy against Japanese and Korean rivals. However, these warranties are often highly restrictive, applying only to the original owner and excluding those who use vehicles for commercial transport. For example, BYD terminates coverage upon a change of ownership, while brands like XPeng and GAC Aion impose annual mileage limits and mandate official service center maintenance.

This landscape has shifted as several manufacturers, including WM Motor, Aiways, HiPhi, Ji Yue, and Neta, have faced bankruptcy, restructuring, or significant reductions in after-sales operations. The exit of these companies has created critical gaps in spare parts supply, authorized repairs, and warranty fulfillment. The crisis is compounded by ‘data hegemony,’ where the digital nature of modern EVs requires proprietary software and manufacturer-specific authorization for repairs, making it difficult for independent services to maintain vehicles once the original manufacturer is no longer operational.