Auto Repair Veteran Shifts Focus to Electric Vehicles

Liao Jianghua, left, is explaining new energy vehicle repair issues to a young technician at the JD Auto Service store on Longxi Road in Chongqing. (Photo by Qiu Xiaoya/Visual Chongqing)

Chongqing - The rapid growth of new energy vehicle sales has changed the automotive repair market, and some traditional fuel vehicle repair shops have begun to transition into new energy vehicle maintenance. Liao Jianghua is one of them.

After more than 20 years in the automotive repair industry, Liao never expected that one day, he would be speaking confidently about circuit boards. 

Twenty-three years ago, when the domestic automotive repair industry was just emerging, Liao was one of the pioneers. He started with a 50-square-meter repair shop and later became the owner of seven chain repair shops. Four years ago, as more and more new energy vehicles appeared on the streets, Liao sensed that the repair industry's shift from gasoline to electricity was imminent.

Changing demand 

In the early 20th century, China's automotive market entered a period of rapid growth, and the automotive repair industry was full of business opportunities.

In 2001, after working as an auto mechanic for four years, Liao started his own business and opened a repair shop in Jiangbei District, Chongqing, covering less than 50 square meters.

Liao had four years of experience repairing various models. At that time, there were few auto repair shops in Chongqing, and business was good, Liao said. The following year, he expanded his operation by leasing the adjacent shop.

Starting in 2006, China’s automotive market experienced explosive growth for 10 consecutive years. Car sales soared, the number of vehicles rapidly increased, and the auto repair industry saw the rise of 4S stores and repair chains.

Over 10 years, Liao expanded from one shop to seven in Chongqing, with great success.

However, after 2016, everything started to change quietly. That year, the China Association of Automobile Manufacturers reported that China's production and sales of new energy vehicles exceeded 500,000 units.

"Since then, some of our regular customers who used to drive fuel-powered cars switched to new energy vehicles, and they stopped coming to us," Liao recalled. From 2017 onwards, business at his shop began to decline year by year.

To address this, Liao tried various solutions, such as joining JD Auto Service, to increase visibility, improve professional services, and reduce supply chain costs. Despite these efforts, the downward trend in the traditional repair industry continued.

As the number of green-plated new energy vehicles increased on the streets, while business at his shop was not as booming as in previous years, Liao began to consider: should he hit the brakes on traditional fuel vehicles and shift into the new energy vehicle industry?

"Starting in 2020, more and more new energy vehicle owners came to ask if we could repair electric cars, but we didn't have technicians skilled in new energy vehicle repairs, nor the equipment to do so. We could only suggest that customers go to other shops, losing business in the process." Liao realized that with the surge in new energy vehicles, no one could go against the trend.

At the end of 2020, Liao decided to select the JD Auto Care store on Longxi Road in Chongqing as a pilot for the transition from fuel vehicle to electric vehicle repairs.

Technology shift

In theory, traditional fuel-powered vehicles have complex mechanical components, while electric vehicles have a relatively simple structure. They lack the three main parts of an engine, transmission, and fuel system. However, this has become a roadblock for many auto repair shops transitioning to electric vehicle maintenance.

"Because electric vehicles lack these 'traditional issues,' car repair is no longer based on experience but relies more on professional knowledge and equipment," Liao explained.

For decades, traditional auto repair shops were built around the power systems and complex mechanical structures of fuel vehicles, while electric vehicles have completely disrupted this model with their batteries and electric motors.

The first step in the transition was talent development. At the end of 2020, Liao sent five young technicians to Shenzhen for training and joined them for further learning.

After putting down the wrench for many years, Liao said he had to explore the new industry trends.

From the basic structure of new energy vehicles to the drive motors and control technologies, and even the electric-controlled engines and chassis, these are all aspects the technicians need to master and learn the repair skills, Liao added.

In addition to talent development, Liao also purchased the necessary equipment for repairing new energy vehicles, including diagnostic computers, oscilloscopes, and electric compressors.

"The cost is considerable. A repair station for a new energy vehicle costs between 150,000 to 200,000 yuan ($20,459.25 to $27,279), several times more than a fuel vehicle station." Liao remarked, realizing that the transformation of traditional auto repair shops wasn't as easy as he had imagined.

After over six months of preparation, Liao's first pilot shop for NEV repair officially opened.

Liu Chaoxu, an experienced 43-year-old technician at Liao's shop, felt somewhat unfamiliar when working on new energy vehicles for the first time.

"New energy vehicles mainly require repairs on integrated electronics and battery modules. Additionally, the vehicles currently use high-voltage systems ranging from 200V to 750V. During the repair process, we must have electrical certificates, wear insulated gloves and shoes, and use insulated tools like insulated wrenches," Liu explained. With the insulated mats in the work area, Liu felt he had transformed from a mechanic into an electrician.

Market change

The year the transition was implemented, the store on Longxi Road saw a 25 percent increase in business.

With this momentum, Liao's transformation journey became even more solid. He followed up by transitioning the JD Auto Service store in the Dazhulin area into an electric vehicle repair shop.

It proved that Liao's decision was correct. In 2024, of the seven auto repair shops Liao owns, only the two pilot stores that adopted the transition experienced business growth.

"Currently, most of our new energy vehicle repair orders come from ride-hailing cars and those that have entered the 'out of warranty' period after the battery warranty has expired," Liao said.

"Being in the auto repair business, the market's condition is closely tied to car sales. The better the sales, the greater the demand for after-sales maintenance," Liao explained. From the sales data of new energy vehicles in recent years, he noted that auto repair businesses should adapt to the trends of the times.

According to the five-year pattern of after-sales lagging, the repair demand for new energy vehicles' batteries, motors, and electric control systems will peak in the next three to five years. The maintenance market demand will continue to grow.

The white paper on China's automotive maintenance industry shows that the market size for new energy vehicle maintenance and repair is expected to reach 300 billion yuan.

However, according to the Ministry of Industry and Information Technology plan for manufacturing talent development, by 2025, the total talent required for energy-saving and new energy vehicles is expected to reach 1.2 million, with a talent gap of 1.03 million. Among this, the new energy vehicle repair sector will face an 80 percent talent shortage.

Faced with the significant market gap, many companies in the auto repair industry are also seeking transformation. For example, in June last year, JD Auto Service announced plans to establish over 100 industry-education integrated schools in the next three years, aiming to train 5,000 new energy vehicle repair professionals.

"I am glad we decided to transform four years ago. Over the next five years, the development of the new energy vehicle repair industry will continue to improve," Liao said.

(Qiu Xiaoya, a reporter from Chongqing Daily, contributed the Chinese version of this report.)