KATHMANDU: Collision repair costs for electric vehicles declined in the third quarter, even as EV sales surged in the United States.
New data from Mitchell, an auto damage technology firm, shows repair costs are now at their lowest level since late 2024.
EV sales jumped 36% year-on-year in Q3, driven by buyers rushing to secure the USD 7,500 federal tax credit before it expired on September 30. The sales boost led to more EVs on the road and more visits to repair shops.
Mitchell reports that collision repair claim frequency for EVs rose to 3.21% in Q3. This marks an all-time high and a 4.2% increase year-on-year.
Despite higher claim volumes, the average EV collision repair cost fell 2.4% quarter-on-quarter. It is now at the lowest level recorded this year. The drop may ease concerns over high EV repair expenses.
Still, EVs remain the most expensive vehicles to repair after a crash. Average claim severity in the U.S. stands at USD 6,185. This compares with USD 5,529 for plug-in hybrids, USD 4,983 for mild hybrids, and USD 4,974 for ICE vehicles.
The cost gap is narrowing as the EV market matures. Mitchell says parts availability remains a key issue. OEM parts make up 85.13% of EV repairs, compared to 62.30% for ICE vehicles. Aftermarket options for EVs remain limited.
Repair ability also affects costs. Only 13.51% of EV parts are repairable after a collision. For ICE vehicles, the figure is 15.96%. More replacements lead to higher bills.
In the U.S., the Tesla Model Y leads EV collision repair claims with 30.57%. It is followed by the Tesla Model 3 at 26.68%. The Ford Mustang Mach-E ranks third with 5.77%. The Tesla Model S and Model X complete the top five.
In Canada, the ranking differs slightly. The Tesla Model 3 tops the list, followed by the Model Y and Mustang Mach-E. The Hyundai Ioniq 5 and Hyundai Kona EV rank fourth and fifth.
