Car repair costs for electric vehicles remain high, gap between costs and traditional fossil fuel automobiles narrows
In Germany, the shift towards electric passenger cars is gathering momentum. As of April 1, 2025, over 1.7 million electric cars were registered, marking a significant increase of more than five times since the beginning of 2021 [1]. This growing trend is also reflected in the repair industry, as repair costs for electric vehicles (EVs) are gradually approaching those of conventional internal combustion engine (ICE) vehicles.
According to Anja Käfer-Rohrbach, deputy CEO of the German Insurance Association (GDV), the narrowing gap in repair costs is a positive sign for the acceptance of EVs [2]. The analysis by the GDV suggests that full coverage damages for pure EVs are, on average, 15 to 20 percent more expensive compared to comparable ICE vehicles. However, this figure represents a decrease from last year's difference of 20 to 25 percent [3].
Several key factors contribute to this development. Firstly, increased experience among repair shops and service providers is lowering labor costs and repair times for EVs [1]. As EVs become more prevalent, mechanics and technicians gain practical knowledge and efficiency in repairing EV-specific systems.
Secondly, the broader EV model range and volume are making EV servicing more routine, leading to lower marginal repair costs through experience and economies of scale [1][2]. The sharp rise in EV registrations means more repairs occur regularly, which helps reduce the complexity and expense traditionally associated with EV repairs.
Thirdly, insurers and repair shops are adapting to EV technologies, leading to better pricing and management of repair claims [1]. This adaptation pushes EV repair costs closer to those of ICE vehicles.
Lastly, the stabilization of parts supply and service networks is reducing component costs and availability issues [1][4]. As EVs become mainstream, the supply chains for replacement parts and specialized EV service kits scale up, making these components more accessible and affordable.
These trends are not unique to Germany. They reflect a global trend towards parity in vehicle repair economics [1][2]. However, it's important to note that EV repairs still generally cost somewhat more than ICE repairs, but the cost difference is decreasing steadily as the EV market matures and infrastructure for maintenance expands [1].
In conclusion, the decreasing disparity in repair costs between EVs and ICE vehicles is a testament to the growing acceptance and maturity of the EV market. As the industry continues to evolve, it's expected that repair costs will continue to converge, further fostering the adoption of electric vehicles.
References:
[1] KBA. (2025). Number of registered electric passenger cars in Germany.
[2] GDV. (2025). Analysis of repair costs for electric and internal combustion engine vehicles.
[3] Käfer-Rohrbach, A. (2025). Interview with Die Zeit.
[4] Käfer-Rohrbach, A. (2025). Comments on the narrowing repair cost disparity between electric and internal combustion engine vehicles.
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