Without the “three major items” of fuel vehicles, new energy vehicles were once considered as the choice of low maintenance costs, but from the feedback of the current market, this is not the case.
Earlier, the news that Polestar 2 pure electric vehicle owner in Ningbo had “sky high maintenance costs” shocked the circle. After a traffic accident, the vehicle’s headlights and chassis parts were damaged, and the battery panel was sunken inwards. The owner was told that the maintenance price would be as high as RMB 540000. Maintenance costs are more than twice the price of new cars.
The reason is a manufacturing design problem, and the aluminum plate casing that wraps the battery pack cannot be repaired alone, and the entire battery pack must be replaced.
Not only that, the deeper impact of high maintenance costs also exists in later insurance costs.
“The oil price has risen several times. I thought it would save money to run an electric vehicle, but I failed to save my own money in the end.” A new energy car owner said: “Last year, the price of insurance was more than RMB 8000, during which there was an accident. When the insurance was launched this year, the insurance company’s quotation would be nearly 15000 yuan. It seems that the rest of the oil money was finally handed over to the insurance company.”
Since this year, the topic of new energy vehicle after-sales has emerged endlessly. Through observation, it is found that the current dispute points of new energy vehicle after-sales in terms of maintenance and insurance have never been resolved, and there is a deep correlation between the two.
The analysis believes that the current maintenance problems of new energy vehicles are not only due to maintenance costs brought by high-tech configuration, but also due to insufficient after-sales service capabilities and insufficient market competition. With the recent introduction of new energy vehicle after-sales service regulations and more and more car companies involved in the insurance field, can the situation of “not cheap maintenance” and “increasing premiums” be improved?
Sky high maintenance cost: a disaster caused by high integration and high technology?
“Among the new energy vehicles that come here for maintenance, the problem of high maintenance costs for single vehicle is common, because the maintenance involves too much higher process difficulty and material costs than traditional fuel vehicles.” This is what a staff member of a company that provides after-sales service for new forces of car building said.
According to the report released by the data agency We Predict, through the research on the service and maintenance of about 19 million vehicles between 2016 and 2021, it is found that the maintenance cost of electric vehicles is 1.6-2.3 times that of fuel vehicles.
Zhou Dajun, chairman and president of Huasheng Group, an automobile maintenance chain, once said that most of the new energy vehicles currently under maintenance are only about one year old, with a single vehicle maintenance cost of more than 5000 yuan, and the maintenance labor costs are generally high.
According to industry analysis, there is a big difference between new energy vehicles and fuel vehicles. There are many intelligent parts on the body of new energy vehicles. The use of advanced manufacturing technology may lead to an increase in maintenance costs. There are four aspects:
First, intelligent accessories. The higher the intelligent level of new energy vehicles, the higher the maintenance cost.
Previously, the media reported that the maintenance of a single laser radar of Xiaopeng P5 was up to more than 9000 yuan. However, due to the special location of the lidar, even if the vehicle is slightly scratched, it may incur high maintenance costs.
The second is the integrated die casting process of the car body. If the car body is damaged, the whole large casting needs to be replaced, which is equivalent to returning to the factory for reassembly.
It is understood that the integrated die-casting process is to redesign multiple independent parts that need to be assembled in the original design, and use a super large die-casting machine for one-time die-casting to achieve the original function. The advantage is to reduce 70% of the body parts and improve the tensile stiffness of the frame. However, “all are damaged”. If it is damaged, the entire large casting needs to be replaced, which is equivalent to returning to the factory for reassembly, and the cost is high.
Third, the cost of the battery is not cheap. If the battery pack needs to be replaced, it can cost as little as RMB 60,000 or RMB70,000, or as much as RMB100,000.
Previously, a Tesla ModelS owner went to Tesla for official maintenance due to battery failure and was told that the tax included cost for replacing a pair of battery packs was RMB 80000, while the cost for replacing 16 battery packs of the vehicle was RMB 640000.
Previously, a Tesla ModelS owner went to Tesla for official maintenance due to battery failure and was told that the tax included cost for replacing a pair of battery packs was RMB 80000, while the cost for replacing 16 battery packs of the vehicle was RMB 640000.
Similar to the integrated die casting process, the electric core is integrated into the chassis, making it a part of the vehicle chassis. Although the heavy battery pack shell and module shell can be thrown away, it is also a high maintenance cost of “all damage”.
Previously, a Tesla Model Y accidentally hit the rear wall when reversing, causing damage to the rear right side of the car. The maintenance cost of this Model Y, which was originally priced at 280000 yuan, was up to 200000 yuan. According to the analysis of the insiders, the ultra-high maintenance cost of the car is related to Tesla’s new integrated die-casting technology, and the integral rear floor of the body built under this technology can only be replaced as a whole.
However, the “pot” with high maintenance costs should not only be backed by “high-tech and high integration”.
In addition to the above four aspects, it should be noted that new energy vehicles are also new things. In terms of market share, the number of new energy vehicles in China only accounts for 3.23% of the total number of vehicles. Under the background of small size, the maintenance of new energy vehicles can only be carried out at the after-sales outlets built by the manufacturer or a few authorized third-party maintenance outlets.
That is to say, because manufacturers and suppliers hold key technologies, it is difficult to find brand parts with equivalent quality in the market, so consumers lack bargaining power.
In addition, at the specific maintenance level, the industry is facing difficulties due to rapid technology update and lack of talents. For example, some new energy vehicles on the market are equipped with nearly 100 controllers on the whole vehicle, which many technicians still need to learn. It is estimated by insiders that the annual talent gap for after-sales personnel of new energy vehicles is 100000.
A person in charge of an auto repair chain store said that at present, the maintenance cost of new energy vehicles is generally higher than that of traditional fuel vehicles. “It is not recommended to buy a small number of vehicles. It is difficult to get spare parts for vehicles with small sales, and the repair price of such vehicles is often higher.”
Insurance premium rises: there is no room for reducing the compensation cost
Another consequence of the high maintenance costs of new energy vehicles is the rise in insurance premiums.
Relevant personnel in the insurance industry also said that this year’s new energy vehicle insurance premiums generally increased by 10% year-on-year, especially for models over RMB 250,000, the premium increase was even greater. Taking Weilai ES8 as an example, its auto insurance in 2021 is almost RMB 7,434, which has risen to about RMB 8,131 this year, and the Tesla Model 3 has risen from RMB 6,200 to RMB 7,272.
In response to the issue of rising premiums, Cheyun.com consulted with personnel from exclusive insurance companies for new energy vehicles, including Ping An Property & Casualty, China Pacific Property & Casualty, and PICC Property & Casualty. The general reply is that the adjustment of new energy vehicle insurance costs is related to the accident situation, vehicle condition and personal situation.
However, based on the current industry status and feedback from some car owners, in addition to consumers’ own reasons, the reasons for the rise in new energy vehicle insurance premiums are mainly related to word-of-mouth complaints, maintenance costs, raw material prices, and car companies’ own market size and other factors.
First of all, it is a market consensus that new energy vehicles have a high accident rate and a high loss rate.
According to data from China Banking Insurance Corporation, from 2016 to the first half of 2020, the overall accident frequency of new energy vehicles was 3.6% higher than that of non-new energy vehicles, and the accident rate of household new energy vehicles was 9.3% higher than that of non-new energy vehicles. The average indemnity for energy vehicles was 2.7% higher than for non-new energy vehicles.
As mentioned above, the maintenance cost of new energy vehicles is higher than that of fuel vehicles, and its insurance premiums will inevitably rise.
“In 2021, the insurance company found that the compensation for new energy vehicles is much higher than that of normal fuel vehicles, and the premiums are almost the same.” Mr. Liu, the owner of Weima, said: “The simplest example is that I went to the 4S store for maintenance a few days ago. A Weimar EX5, which was licensed in July 2021, traveled 17,000 kilometers and hit the isolation pier when making a U-turn. The main damage to the vehicle is the deformation of the motor unit and battery pack. If it is a fuel vehicle, the proportion that may be repaired is 30%. % is fine, but new energy, especially batteries, are dangerous goods, which are higher than fuel vehicles in terms of transportation timeliness, and the insurance company directly pays the total loss premium, not maintenance.”
Some people in the industry said: “When a fuel vehicle encounters a traffic accident such as a hang-up, the owner can go to the 4S shop or go to the repair shop outside, while the new energy vehicle can only go to the repair point designated by the manufacturer. For example, underpinning Collision accidents, such accidents often damage the battery, and the core of the new energy vehicle lies in the three-electric system, when the battery component fails, the car manufacturer’s repair station may require the entire vehicle’s battery pack to be replaced.”
In addition, the increase in premiums is also related to the supply chain crisis and the expansion of new energy insurance liabilities.
Li Wenzhong, deputy director of the Insurance Department of Capital University of Economics and Business, said that there are certain differences in the risks of insured vehicles of different brands and models, and the records of accidents and violations of different vehicles are also different. At the same time, affected by the supply chain crisis, the supply prices of some vehicle spare parts have soared, especially some imported vehicles. This will increase the cost of vehicle repairs, and insurance premiums will naturally increase with it.
More importantly, due to the high risk of spontaneous combustion of new energy vehicles, the high damage rate of motors, batteries, and electronic control systems, as well as the risk of accidents that are prone to occur during charging frequency and charging, are covered by the exclusive insurance coverage. The additional insurance also adds the corresponding protection content of external power grid failure loss insurance, self-use charging pile loss insurance and self-use charging pile liability insurance.
And for the price is similar but there are differences in premiums between different brands. Analysts believe that the difference may exist in the market size of car companies. Generally speaking, due to the larger and more stable parts supply chain of traditional car companies, their maintenance costs are relatively more controllable, and the corresponding insurance amount is relatively low, which may also be one of the criteria for insurance companies to measure premiums.The contradiction between maintenance costs and rising insurance premiums is mainly because risks and compensation costs do not leave enough room for fee reductions.
Securities analysts said, “For the underwriting of new energy vehicles, small and medium-sized enterprises have limited pricing power, and their combined cost ratio exceeds 110%, while leading companies rely on their natural advantages in pricing, customer reserve and manufacturer cooperation. breakeven.”
Remediation of “electric dads”: industry policy and OEMs join forces
It can be seen that with the development and growth of the new energy vehicle market, the development “pain points” extended from this are also constantly exposed. In view of the current situation of the industry, to solve the current problems of high maintenance costs and rising insurance premiums for new energy vehicles, it is necessary to work together at the policy level and car companies themselves.
In order to promote the standardization and convenience of after-sales service of new energy vehicles, the “Specifications for After-sales Service of Electric Passenger Vehicles” (hereinafter referred to as the “Specifications”), which have been reviewed and approved by the China Automobile Dealers Association Group Standards Review Committee, will be released from January 2023. It will come into effect on the 1st of the month.
Experts from China Automobile Circulation Association pointed out that many experiences in the aftermarket of fuel vehicles are worth learning from new energy vehicles. The technology of traditional fuel vehicles has the characteristics of inheritance and universality. The market is highly standardized. The OEMs rarely monopolize the technology and spare parts. There is an opportunity for external maintenance plants to flourish and provide consumers with reliable auxiliary parts and more favorable maintenance solutions.
Experts agreed that the Code has a reasonable structure, scientific content, universal applicability and strong operability, reaching the domestic advanced level.
According to the above person in charge of China Automobile Circulation Association, the highlights of the Code are: combing the requirements of existing regulations, standards and relevant documents, and sorting out the obligations and responsibilities of after-sales service providers; It distinguishes the requirements of vehicle and power battery maintenance site, equipment, personnel, process, safety, etc; The annual hidden danger inspection of power battery is proposed, and the health status inspection is carried out regularly.
At the same time, the Code also pays attention to the troubleshooting of hidden dangers of power batteries, the supplement of fire protection measures in battery maintenance, and the recovery and storage of batteries in after-sales service.
The above person in charge said that the introduction of the Specification can provide scientific theoretical basis and technical guidance for relevant production and service enterprises, and will help after-sales service providers of electric passenger vehicles regulate their after-sales service behavior, step by step improve their after-sales service ability and service level, and at the same time help to improve the safety awareness of consumers, better use of automotive products, and rational choice of more reassuring and high-quality automotive after-sales service.
Of course, the Specification is just a breakthrough in the service standard of new energy vehicles circulation link from 0 to 1, and the regulation of new energy vehicles after-sales market still needs the participation of enterprises.
Cui Dongshu, the secretary-general of the National Passenger Car Market Information Joint Conference, also said that in order to avoid the phenomenon that the insurance cost of new energy vehicles is too high and the car owners “can’t afford to buy”, it may be possible to let “car enterprises establish their own insurance varieties” and let all major car enterprises participate in the joint standard setting.
Cui Dongshu pointed out that the premium of new energy vehicles is higher than that of fuel vehicles of the same level, mainly because the insurance historical data of new energy vehicles is less accumulated. With the rapid improvement of new energy products in recent years, compared with the old products in the historical data, the technology and safety of new energy vehicles have been improved rapidly. The failure probability of some old models in the early stage is relatively high. Therefore, due to the large fluctuation of historical data, the historical data of some high failure models in the early stage was brought in, which affected the reasonable cost and guarantee of high safety and low failure after model improvement.
In fact, since this year, many automobile enterprises represented by BMW and Weilai have striven to enter the insurance market. The layout of the insurance industry seems to be “killing two birds with one stone” for car enterprises.
On the one hand, this is based on the strategic layout of developing new energy vehicles; On the other hand, it is conducive to extending its own auto and financial service chain, increasing customer stickiness, and further tapping the stock market to improve profit margins. In the long run, insurance companies and auto companies will develop together, and auto insurance risk management and customer service capabilities are expected to be optimized.
According to the sales, ownership, underwriting quantity and average vehicle premium of new energy vehicles, some securities institutions have estimated the premium scale of new energy vehicle insurance in the next ten years.
It is estimated that by 2025, the sales volume of new energy vehicles will exceed 10 million, reaching 10.46 million, and the ownership will reach 35.65 million; The average vehicle insurance premium remains relatively stable. Affected by the comprehensive reform of vehicle insurance, the average vehicle insurance premium of new energy vehicle insurance is expected to drop to RMB 4200/vehicle in 2022, and the proportion of new energy vehicle insurance premium in the overall vehicle insurance premium scale is expected to increase from 4.1% in 2021 to 15% by 2025.
Xie Yuantao, dean of the School of Insurance of the University of International Business and Economics, said that auto insurance is just in demand, but traditional auto insurance has become saturated, and is also vulnerable to restrictions from traditional channels such as 4S stores, with a high comprehensive cost rate.
New energy vehicle insurance is an important incremental space in the vehicle insurance market. At the same time, new energy vehicles are very different from traditional vehicles in terms of risk points and intelligence. Risk measurement of many core technologies is not mastered by traditional insurance companies, and it is difficult to standardize. Therefore, new energy vehicle manufacturers involved in insurance intermediary business can better control risks and costs, achieve value-added services, and the vertical integration model is also conducive to the promotion of automobile brands.
Summary of Che Yun
On the whole, the main reason for the high maintenance and premium of new energy vehicles is that the current vehicle volume is limited and the industry development mechanism is not sound. In order to make car owners “affordable” and “repairable”, the standardized guidance of policies and the establishment of “exclusive” insurance by car enterprises seem to be a solution.
On the one hand, formulating rules according to the actual development path of new energy vehicles can optimize and innovate the after-sales service of new energy vehicles, and promote the industry’s unified new energy vehicle service standards that meet the modern development; On the other hand, many new energy vehicle enterprises have held users in their own hands from the very beginning, which is the easiest way to get through the whole life cycle of vehicle owners. In addition, they have also cultivated new business models and growth space by doing a good job of online insurance, claims settlement and maintenance closed-loop, and cultivating new connections between owners and vehicle enterprises.
Comments