(Yicai) Sept. 23 -- Several Chinese new energy vehicle makers have gone bust after a period of market consolidation, leaving hundreds of thousands of car owners engulfed in maintenance difficulties.

Once carmakers halt production and operation, authorized repair centers nationwide gradually shut down. Even though some drivers can find repair shops in some regions, they still need to cover all expenses, as the lifetime warranty promised by automakers at the time of sale became meaningless.

Neta, the electric vehicle brand of Hozon New Energy Automobile, was the top-selling Chinese NEV startup that went bankrupt, having sold nearly 500,000 units between 2018 and 2024. Others include HiPhi, WM Motor, and Ji Yue, a joint venture between auto giant Geely Automobile Holdings and tech firm Baidu.

"Once a NEV manufacturer goes bankrupt, its established authorization system immediately collapses," Song Quanye, automotive after-sales service market expert, told Yicai.

"The sales, spare parts, service, and survey stores have no more spare parts," the owner of a Net electric vehicle told Yicai. "If you need repairs, you must go to ordinary repair shops and pay out of your pocket."

Moreover, owners of Neta cars recently reported losing access to vehicle telematics. The court-appointed administrators of Hozon Auto notified them that the third-party data provider had shut off services, so they had to purchase data plans on its WeChat account to access the Neta app, which enables remote vehicle control and in-car entertainment.

"Unauthorized repair shops vary greatly in repair quality, and their fees lack transparency," Song explained. "Since drivers have no other options, the repair costs become prohibitively expensive."

Even though the daily maintenance costs of most NEVs are not as high as those of fossil fuel cars, their chassis systems wear out quickly and have a higher likelihood of damage, Song noted, adding that when it comes to replacement, the expenses can be quite significant.

"Fuel vehicle manufacturers and insurance companies have been competing for decades, and with the high interchangeability of parts and competitive market, even if one goes bankrupt, the prices of components and repair services remain relatively reasonable," according to Song. In contrast, the maintenance costs for products from bankrupt NEV brands are much higher.

Editors: Tang Shihua, Futura Costaglione