As new energy vehicles (NEVs) now represent over 50% of car sales and the first wave of these vehicles moves beyond warranty periods, expensive and inadequate after-sales services have emerged as a significant concern. Cases of exorbitant repairs are becoming increasingly common, with battery replacements sometimes costing more than a new vehicle.

"The seismic shift in the automotive market has reshaped entire business models. During this transition, the NEV aftermarket has faced numerous challenges and pain points," said Li Wei, President of CATL's Quality System and Aftermarket Business Division, in a recent interview with Yicai. He specifically cited expensive battery replacements as a critical issue.

In recent years, the industry's push for higher volumetric energy density in power batteries has driven widespread adoption of CTP (Cell to Pack) battery technology. However, the high integration level of CTP designs makes repairs significantly more difficult, leaving the industry trapped in a "replace-only" maintenance paradigm.

Research from the China Insurance Automotive Safety Index reveals that among 59 pure electric NEV models, the average "parts-to-vehicle price ratio" for power battery packs stands at 50.96%. This means replacing the battery pack of a $28,200 NEV could cost over $14,100.

Cost-Effective Repair Alternative

To address this challenge, CATL's independent aftermarket brand "Ningjia Service" launched CTP repair services on August 10, coinciding with its first anniversary. An engineer at Ningjia's Shanghai flagship experience center explained that repair costs are substantially lower than full replacements—while new batteries typically cost around $14,100, repairs can reduce expenses to between $1,400 and $2,800. Currently, the service is limited to CATL batteries only.

Ningjia Service evolved from CATL's after-sales department established in 2015 and became an independent brand in 2024. It now operates more than 1,100 service centers across 75 countries, including over 800 in China, offering battery testing, maintenance, used-vehicle battery inspection, recycling, and second-life utilization services.

Growing Market Opportunity

The rapid growth of NEV ownership and associated market challenges have created a blue ocean opportunity in the NEV aftermarket. A CCID Consulting report estimates China's NEV aftermarket reached $262 billion in 2024, with projections exceeding $538 billion by 2027—representing a 25% annual growth rate. Cinda Securities predicts the NEV maintenance sub-sector alone will grow to $41.3 billion by 2025.

Besides CATL, other players including third-party service providers Tuhu and Tmall Auto Care, as well as auto parts giants Bosch and Mobil, are entering this space.

Li Wei noted that CATL's advantages in battery technology, market share, and ecosystem integration position it strongly in the NEV aftermarket. Ningjia Service aims to become CATL's "third growth curve."

The company stated that Ningjia Service enables a closed-loop battery ecosystem spanning "production-use-second life utilization-recycling." Future aftermarket services may expand beyond repairs to include charging/swapping infrastructure, low-altitude economy applications, marine uses, and zero-carbon construction projects.

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