November 15, 2023 / by Sonia Javed
Unveiling the Cost Dynamics: EVs Face Higher Repair Bills Than ICE Models in Global Study
Solera Holdings, LLC, a global leader in vehicle lifecycle management, has unveiled a pioneering study that compares repair costs between electric vehicles (EVs) and internal combustion engine (ICE) vehicles. This landmark research offers insights into the evolving landscape of the auto industry as it shifts towards electrification.
Study Overview: A Comprehensive Analysis Across 20 Countries
Data Source: The study draws on Solera’s extensive global claims database, examining approximately 92,000 repair estimates from January 2021 through August 2023.
Focus Model: The Hyundai Kona, awarded the 2023 Subcompact SUV Editor’s Choice by Car and Driver, U.S., serves as the study’s model for comparison in both its EV and ICE variants.
Key Findings: Understanding the Cost Dynamics
1. Higher Repair Costs for EVs: On average, EV repair costs are 29% higher than ICE vehicles globally.
2. Parts Cost Disparity: EV parts are, on average, 48% more expensive, including components like high-voltage batteries and control units.
3. Notable Part Costs: EV battery systems represent the highest part cost item, significantly surpassing costs for components like headlights.
4. Frequency of Replacements: Certain parts like rear bumper absorbers and reinforcements show notably higher replacement rates in EVs.
Industry Implications: A Path Toward Innovation
In-Depth Insights: Solera’s research provides a first-ever look at the factors driving higher EV repair costs, aiming to enhance industry understanding.
Optimization Opportunities: These findings are crucial for optimizing business practices in the collision repair industry.
Collision and Liability Claims: The study also highlights differences in collision and property damage liability claim frequencies and severities between EVs and ICE vehicles.
As the automotive industry continues to evolve with electrification, studies like Solera’s not only highlight current challenges but also pave the way for innovative solutions and improved understanding. This research marks a significant step in adapting industry practices to the realities of EV maintenance and repair.
About Solera: Solera stands as a global provider of integrated vehicle lifecycle software, data, and services, catering to over 300,000 customers in 100+ countries.