NEV Startup Bankruptcy Sparks Car Maintenance Concerns for Owners

Select Language:

Several Chinese electric vehicle manufacturers have gone bankrupt following a period of market consolidation, leaving hundreds of thousands of owners facing significant maintenance challenges. Once these companies cease production and operations, authorized repair centers across the country gradually shut down. Although some drivers may still find repair shops nearby, they often have to pay full costs out of pocket, as the lifelong warranties initially offered by automakers become meaningless.

One of the leading electric vehicle startups, which had sold nearly 500,000 units from 2018 to 2024, filed for bankruptcy. Other impacted brands include HiPhi, WM Motor, and Ji Yue—a joint venture between a major automaker and a tech company.

“Once a NEV manufacturer goes bankrupt, its authorized service network quickly collapses,” said an automotive after-sales expert. “Spare parts, service, and survey stores no longer have stock, so owners needing repairs have to rely on general repair shops and bear the costs themselves.”

Additionally, owners of Neta vehicles have reported losing access to vehicle telematics. The court-appointed administrators notified owners that a third-party data provider had shut down services. As a result, owners must purchase data plans through the company’s WeChat account to access the Neta app, which allows remote vehicle control and in-car entertainment.

“Unauthorized repair shops vary widely in quality, and their pricing lacks transparency,” the expert explained. “Because owners have few alternatives, repair costs can become unreasonably high.”

While regular maintenance costs for most electric vehicles are generally lower than those for traditional gasoline-powered cars, their chassis systems tend to wear down rapidly and are more prone to damage. Replacement expenses can also be quite costly, the expert noted.

“Traditional car manufacturers and insurance companies have been competing for decades, and thanks to high parts interchangeability and a competitive market, repair and component prices remain reasonable—even if a company goes bankrupt,” he added. In contrast, maintenance prices for vehicles from bankrupt NEV brands are significantly higher.