Why EV Repairs Are So Expensive (and How to Avoid Big Bills)

 

Key Points

• Research suggests EV repairs are costlier due to proprietary technology and limited technician access in India, with insurers often applying high depreciation.

• It seems likely that insurers globally use tactics like lower write-off thresholds for EVs, potentially inflating costs for owners.

• The evidence leans toward OEMs like Tesla restricting repairs, though EU laws are pushing for more access, unlike India’s lack of right-to-repair laws.

• Controversy exists around insurer transparency, with Indian policies often hiding exclusions, while global practices vary by region.

Electric vehicles (EVs) are changing the way we drive, but their repair costs can be a shock. From high battery replacements to insurance loopholes, here’s what every EV owner needs to know.

Why Are EV Repairs So Expensive?

Battery Costs Dominate

EV batteries can cost 40–60% of the vehicle’s value.

For example:

Replacing an Ola S1 scooter battery costs ₹1.2 lakh (about $1,440) [E-Vehicle Info].

A Tata Nexon EV battery replacement can hit ₹7 lakh ($8,400), with insurers covering only half due to depreciation [Cartoq].

Few Trained Mechanics

Only 12% of Indian mechanics are EV-trained, forcing owners to rely on expensive brand service centers [Mobility Outlook].

Proprietary Tech Lockouts

Brands like Ather Energy require authorized service centers for software fixes, charging ₹7,500 for issues that cost₹500 for gas scooters [RushLane].

 Insurance Pitfalls in India

Hidden Depreciation Clauses

Insurers like Bajaj Allianz apply 50% depreciation on battery claims, often buried in policy fine print. For a ₹6 lakh battery, you might pay ₹3 lakh out of pocket [MyInsuranceClub].

Exclusions for “Manufacturing Defects”

When Ola S1 scooters caught fire in 2022, insurers denied claims, blaming defects excluded in policies. Owners had to rely on Ola’s warranty [Hindustan Times].

Regulatory Gaps

India’s 1988 Motor Vehicles Act doesn’t address EV risks like battery fires or software failures. Standard policies may exclude software glitches as “mechanical breakdowns” [Business Today].

Structural Challenges

• Absence of Right-to-Repair Laws: Unlike the EU, India has no legislation mandating OEMs like Ola, Tata, or Ather to share repair tools, software, or manuals with independent garages.  

• Skill Gap: A 2023 report indicates only 12% of Indian mechanics are trained for EV repairs, exacerbating reliance on OEM service centers.  

• Regulatory Gaps: The Motor Vehicles Act, 1988, does not address EV-specific risks like thermal runaway or software glitches. Software failures are typically excluded by insurers as mechanical breakdowns. There is also a lack of EV-tailored insurance products.  

• Unorganized Recycling: India's unorganized recycling sector lacks standards, affecting the reliability of refurbished batteries.  

 Real-Life Case Studies

Ola S1 Fires (2022–2023)

Multiple scooters caught fire due to battery defects. While Ola replaced batteries under warranty, out-of-warranty costs hit ₹1.2 lakh. Insurers like ICICI Lombard denied claims [Hindustan Times].

Tata Nexon EV Battery Costs

One owner faced a ₹7 lakh bill after warranty expiry. Insurers covered only half, leaving a ₹3.5 lakh gap [Cartoq].

Global Lessons: What Other Countries Are Doing

Tesla’s “Walled Garden” in the U.S.

A U.S. lawsuit accused Tesla of inflating costs by blocking third-party parts. Repairs often cost 50% of the car’s value [Bloomberg Law].

Tesla restricts third-party repairs, leading to sky-high costs. A $700 repair was quoted at $16,000 [CleanTechnica].

Hertz sold 20,000 Teslas in 2024 due to repair costs [Ars Technica].

EU’s Right-to-Repair Law

Starting in 2024, the EU requires brands to share repair tools and manuals, cutting costs by 30% [European Parliament].

China’s Battery Swapping

NIO’s Battery-as-a-Service lets users lease batteries, reducing upfront costs and shifting liability away from insurers [NIO].

Comparative Analysis

A comparison of key factors affecting EV repairs in India and globally reveals:

Factor	India	Global (U.S./EU/China)
Repair Access	OEM monopoly restricts independent repairs	EU mandates tool sharing; U.S. faces Tesla’s restrictions
Battery Costs	40–60% of EV value, import-dependent	China’s localized swaps reduce costs; U.S./EU costs high
Insurer Tactics	50% battery depreciation, defect exclusions	Software exclusions, lower write-off thresholds, parts pairing
Consumer Awareness	Low, leading to unexpected costs	Growing, with lawsuits challenging OEM practices
Cost Drivers	Imported batteries (GST, duties)	OEM monopolies (Tesla), high battery costs
Insurance Loopholes	Hidden depreciation clauses	Parts pairing, software exclusions
Policy Gaps	No EV-specific insurance products	Germany offers battery degradation coverage

How to Protect Yourself as an EV Owner

Ask Insurers Tough Questions

• Demand written details on battery coverage and depreciation rates.

• Check if software or manufacturing defects are excluded.

• Push for Right-to-Repair Laws

• Support policies like the EU’s model to break brand monopolies.

• Consider Refurbished Batteries

• Startups like Lohum offer refurbished batteries at 30% lower costs [Lohum].

• Keep Detailed Records

• Document vehicle maintenance and repairs to strengthen insurance claims.

The Future of EV Repairs

• AI Diagnostics: Startups are developing tools to simplify repairs and reduce costs.

• Battery Insurance: Standalone policies for batteries could ease replacement costs.

Additional Subtopics

• Telematics Data: Insurers use EV driving data, like MG ZS’s connected tech, to assess risk and deny claims for policy violations Swiss Re.

• Aftermarket Solutions: India’s nascent EV retrofit market contrasts with U.S. startups like LKQ Corporation recycling Tesla parts Reuters.

• Government Subsidies: FAME-II focuses on EV adoption, not repair infrastructure, unlike China’s battery swap networks JATO.

Actionable Insights

• Demand Transparency: Request written details from insurers on battery coverage, depreciation rates, and exclusions for software or manufacturing defects.  

• Advocate for Right-to-Repair: Support initiatives for right-to-repair laws to break OEM monopolies, similar to the EU’s model.       

• Explore Refurbished Batteries: Consider refurbished battery options from startups like Lohum to save costs.  

• Keep Detailed Records: Maintain thorough records of your vehicle’s condition to support insurance claims.  

• Monitor Telematics: Understand how driving data affects claims and maintain safe driving habits.  

Future Trends

• AI Diagnostics: Startups are developing AI tools to streamline EV diagnostics, potentially reducing repair costs and addressing skill gaps.  

• Battery Insurance: Insurers are trialing standalone battery coverage, which could address high replacement costs.  

 Key Takeaway

EV repairs are expensive due to battery costs, limited repair access, and insurer tactics. While India faces regulatory gaps and import taxes, global examples show solutions like right-to-repair laws and battery leasing. Stay informed, ask questions, and advocate for fairer policies to avoid nasty surprises.

Sources:

Mobility Outlook: India’s Right to Repair Steps

RushLane: Ather Electric Scooter Service Cost

E-Vehicle Info: Ola S1 Battery Cost

Policybazaar: Total Loss in Car Insurance

Inc42: EVs vs ICE Vehicles Cost Comparison

Business Today: EV Fire Insurance Coverage

Bloomberg Law: Tesla Repair Monopoly Lawsuit

European Parliament: EU Right to Repair Law

NIO: Battery as a Service Launch

Electrify News: EV Total Loss Rates

Ars Technica: Tesla Insurance Exclusions

Circularise: EU Battery Passport Regulation

Lohum: Battery Recycling in India

Swiss Re: Insuring Electric Vehicles

Reuters: EV Battery Total Loss

JATO: Battery Swapping in China

CleanTechnica: Tesla Repair Costs

Ars Technica: Hertz EV Fleet Sale

Qover: Insuring Electric Vehicles

Hindustan Times: Ola Electric Scooter Fire Incidents

Cartoq: Tata Nexon EV Battery Replacement Cost

MyInsuranceClub: Insurance for Electric Vehicles

Team-BHP: Right to Repair Act in India

Thunderplus Blog: Electric Car Battery Replacement Cost