Data from the Ministry of Public Security shows that by the end of 2024, the total number of pure electric vehicles in China was 22.09 million, accounting for 70.34% of the total number of new energy vehicles. However, like anything in rapid development, electric vehicles also have "growing pains".

 

The rate of regret among electric vehicle buyers in some lower-tier regions has increased. Recently, Cui Dongshu, the secretary-general of the Passenger Car Market Information Joint Branch of the China Automobile Dealers Association, pointed out when releasing the operation situation of charging piles in March.

 

Coincidentally, the newly released "2025 McKinsey China Auto Consumer Insights" report by McKinsey (hereinafter referred to as the "Report") shows that in the past year, more than 30% of pure electric vehicle owners regretted buying electric vehicles and expressed their intention to return to the "fuel party" when making their next purchase. This "rate of regret" is significantly higher than that of plug-in hybrid and extended-range vehicle owners. A previous research report released by McKinsey indicated that the proportion of consumers who regretted purchasing electric vehicles in 2023 rose significantly compared to 2022, surging from 3% to 22%. It can be seen from this that the "rate of regret" data in the McKinsey report has been increasing year by year. So, what are the reasons that make electric vehicles unpopular?

 

The root cause is the unreasonable configuration of charging piles

 

Overall, the "regret rate" data shows that users in some large and medium-sized cities have given relatively good feedback on the usage experience of electric vehicles, while the experience of electric vehicle owners in lower-tier cities and counties still needs to be further improved. McKinsey's previously released data for 2023 shows that the "regret rate" of electric vehicle owners in third - and fourth-tier cities is as high as 54%, far exceeding the 10% in first - and second-tier cities.

 

I bought a pure electric vehicle in 2023 with a range of 420 kilometers. During holidays, I go on self-driving trips. Generally speaking, it's easier to find charging piles in large and medium-sized cities and their nearby roads, while there are relatively fewer in third - and fourth-tier cities and their surrounding areas, making charging not very convenient. Lu Yang, who runs an individual business in a county in the mainland, told the reporter that the reason he bought an electric vehicle was that it was more cost-effective than a fuel vehicle. However, after purchasing it, he found that there were very few charging piles in the county and its vicinity.

 

Even if he found a charging pile, he had to queue up. Although charging is more cost-effective than refueling, the time cost of finding charging piles and queuing for charging is very high, and the convenience is not as good. He said that nowadays there are more and more electric vehicles, but the construction of charging piles in county towns is clearly lagging behind.

 

Some electric vehicle users in the north are dissatisfied with the "reduction" of the driving range in winter. In the winter in the north, the driving range of electric vehicles is shortened by nearly half. If the air conditioning and heating are turned on, the driving range may have to be halved again. Cheng Bin, an owner of an electric vehicle in Shaanxi Province, said that using the air conditioner in summer also consumes a lot of electricity. If it weren't for his family and children in the car, he wouldn't use the air conditioner most of the time. No matter how you choose, the experience is not good. He said, "Why has the problem of fast battery consumption and inconvenient charging remained unsolved for so many years?"

 

In fact, the construction of charging infrastructure in our country has developed rapidly in recent years, and a charging infrastructure system with the largest number, the widest service coverage and the most complete types in the world has been established. Cui Dongshu stated that currently, the charging utilization rate of public charging piles is three times that of private ones, which is a 3:1 relationship. From January to March 2025, the sales ratio of charging infrastructure to pure electric vehicles reached 0.95%, basically a 1:1 relationship. Due to the sharp increase in the number of public charging piles installed, the overall increase in the vehicle-to-charging pile ratio has reached a relatively reasonable level of 1:1. But the problem lies in that this 1:1 ratio is not balanced. At present, there are still problems with the charging infrastructure, such as incomplete layout, unreasonable structure, backward technology of old charging piles, unbalanced services and non-standard operation. Cui Dongshu believes that the increase in the rate of regret among electric vehicle buyers in some lower-tier regions is due to the existence of these problems.

 

The report indicates that due to various unpleasant experiences in charging, some pure electric vehicle owners are considering reverting to using fuel vehicles, and the proportion of such owners has increased. However, at the same time, plug-in hybrid/extended-range vehicles are steadily increasing in popularity among consumers due to their more convenient charging and advantages in alleviating range anxiety and other aspects. The sudden rise of plug-in hybrids and extended-range vehicles not only brings positive impacts to China in the global development pattern of electric vehicles, but also buys time for the gradual improvement and optimization of the public charging network.

 

In addition, the driving range of some brands of electric vehicles still fails to meet the standards, and the compatibility of many brands' charging piles is insufficient, which also makes consumers feel that it is not cost-effective. An industry expert who preferred to remain anonymous said that some electric vehicle owners regret their purchases, mainly within 1 to 3 years of purchase. The reasons are no more than "false labeling of driving range", a 50% reduction in driving range in winter (with an average decline of 40% to 50%), poor compatibility with public charging piles, and untimely maintenance of some charging piles after faults occur. All these have caused some concerns among consumers.

 

At present, most charging piles still use slow charging methods, and the waiting time for charging is relatively long. Consumer Hang Chen said that although fast charging piles in big cities are becoming more and more convenient, the charging piles in lower-tier cities are still mainly slow charging piles. It takes several hours to wait for a single charge. Such an experience gap has not yet alleviated the "charging anxiety".

 

Battery life remains a concern.

 

What also troubles some electric vehicle owners is the replacement of power batteries.

 

The cost of replacing the battery is close to 40% to 50% of the total cost of purchasing a car, and it is even enough to buy a new car. Su Qing, the owner of an electric vehicle, told the reporter that his electric vehicle has been in use for six years and the battery feels clearly not working well. However, when he inquired at the store, he found that the cost of replacing the battery was too high. Replacing a 60kWh battery plus the handling fee would cost 130,000 yuan. At this price, he can now buy a hybrid model or a fuel vehicle. But because the old car has no other problems and is driving smoothly, He is very torn about whether to change the battery or the car. "If only I had bought the electric vehicle a few years later. The new cars now offer better value for money." " He said.

 

Hang Chen also said that the quotation for replacing the battery of his Tesla Model S exceeded 200,000 yuan because it had passed the warranty period. Replacing the battery would cost nearly 40% of the vehicle price. He believes that this not only exceeds the price of some domestic brand electric vehicles, but also is much more expensive than replacing the engine of a fuel vehicle. For the fuel vehicles he used to drive, replacing the engine of a 2.0T fuel engine assembly cost less than 40,000 yuan, and its lifespan is generally 10 to 15 years, which is much longer than the 8-year or 160,000-kilometer warranty for the power batteries of ordinary electric vehicles. This is just like what is said in the car owners' group: "Save a little money on daily car maintenance, but spend half a car on battery replacement." Hang Chen said that many people regret buying electric vehicles.

 

According to the information obtained by the reporter, the standard for replacing power batteries is that the battery capacity drops below 70% of the initial capacity. However, when this red line is reached, the power battery is often beyond its warranty period, so it needs to be replaced at one's own expense. So many consumers think that the warranty is just a formality. Even during the warranty period, the brand has all kinds of ways to prevent you from getting out of the warranty.

 

Nowadays, there are more and more fast-charging piles, and the battery life is very likely to be shortened. However, for the replacement of power batteries caused by this reason, the manufacturer does not consider it within the warranty period. Cheng Bin said that some manufacturers have strict requirements for the warranty of power batteries. If the battery needs to be replaced due to frequent use of fast charging methods, it is often impossible to go through the warranty period and consumers have to replace the battery at their own expense. However, many consumers are not familiar with the relevant terms and conditions. They often only find out about this when it comes to battery replacement. This reason has also led to a continuous increase in the "regret rate" of electric vehicle purchases in recent years.

 

Not only that, there are also some open secrets in the industry regarding quality assurance. Suo Tong, an electric vehicle maintenance technician, told reporters that some electric vehicle brands calculate battery capacity by charging rather than discharging during the battery warranty period. The result of this is that although the battery's actual driving range decreases during use, the test results still show that it has not met the replacement standards. However, after the warranty period, the opposite approach is adopted, that is, the battery capacity is calculated by the discharge method. Such test results usually indicate that most power batteries need to be replaced. In addition, the testing environment can also affect the battery test results. For instance, laboratory tests are usually conducted under conditions of a constant temperature of 25℃, slow charging, and low discharge intensity. However, actual vehicle usage scenarios may include fast charging in winter, exposure to high temperatures, and frequent use, which can lead to a rapid decline in the battery's health during actual use.

 

The unnamed industry expert mentioned above pointed out that the problem of high battery replacement costs mainly occurred among users who purchased electric vehicles in the early days. In recent years, with the advancement of battery raw materials, technology and processes, the costs have decreased. Therefore, nowadays, electric vehicles have longer driving ranges and cheaper power batteries. However, regarding the warranty restrictions of car manufacturers mentioned by consumers, there are indeed some hidden and unreasonable terms in reality. For instance, designated testing institutions are required for the warranty inspection of power batteries, and the cost of battery replacement should include service fees such as debugging and labor. These requirements have made consumers, who are already complaining about the high cost of battery replacement, even more dissatisfied.

 

The situation learned by the reporter is that some car owners are forced to choose to replace the original factory batteries at a high price, while others choose to sell their cars or even switch back to fuel vehicles. Some people choose "second-hand batteries" or third-party repairs, but this situation faces certain safety risks.
Compared with pure electric vehicles, some people I know have begun to choose hybrid models and fuel models instead. Hang Chen said that because hybrid models can use fuel during long-distance driving, they also extend the battery life to a certain extent and reduce the economic pressure of battery replacement.

 

The residual value of second-hand cars has not increased but decreased instead

 

The decline in the residual value of used electric vehicles is also a major problem plaguing electric vehicle owners.

 

The Tesla Model X, which was sold at a price of over 900,000 yuan a few years ago, could only be sold for over 200,000 yuan after driving 65,000 kilometers. It depreciated by nearly 700,000 yuan in four years, and its residual value was only over 20%. Hang Chen stated that the overall retention rate of second-hand electric vehicles is not high, and the retention rate has been declining year by year, resulting in a market inversion where "new electric vehicles sell better and better, while second-hand ones lose more and more when left unused". The retention rate of fuel vehicles during the same period is generally around 65% to 75%, with a significant gap between the two. This is also one of the reasons for the rising regret rate among electric vehicle owners.

 

At present, compared with the second-hand fuel vehicle market, the second-hand electric vehicle trading market still has many "blind spots". The second-hand fuel vehicle market has long had a relatively mature assessment system. It is easy to assess the vehicle's age, mileage, maintenance records and market conditions, as well as its approximate value. The transactions are also relatively smooth. However, the second-hand electric vehicle market is still in the exploratory stage. The above-mentioned industry experts believe that the current second-hand electric vehicle market still lacks a complete evaluation system. Some professional second-hand vehicle appraisers do not have sufficient experience to accurately judge indicators such as the health condition of batteries, which makes second-hand car dealers reluctant to purchase electric vehicles easily and consumers also lack understanding of second-hand electric vehicles. A variety of factors have led to a relatively low retention rate of second-hand electric vehicles.

 

It is worth noting that in recent years, the "price war" in the new energy vehicle market has intensified. The frequent price cuts of new electric vehicles have directly impacted the used car market. For instance, the Model 3 has dropped from 279,900 yuan a few years ago to around 230,000 yuan, resulting in an average monthly decline of 5% to 8% in the prices of used cars in the same year. Meanwhile, domestic brand electric vehicles are also reducing their prices through various means such as direct price cuts, fixed prices, and rights adjustments, making second-hand electric vehicles the victims of the price war. The balance of consumers' choice between "buying new or old" electric vehicles continues to tip in favor of "buying new".

 

The reason of technological progress also affects the second-hand electric vehicle market. At present, the driving range of electric vehicles is increasing rapidly year by year, which is also accelerating the elimination of old models, resulting in a low residual value of second-hand electric vehicles. Cheng Bin gave an example, saying that in 2018, the range of mainstream electric vehicle models was only around 300 kilometers. By 2024, the range of most newly launched electric vehicle models had exceeded 600 kilometers. The range competitiveness of older electric vehicle models at the same price has sharply declined, leading to a continuous decline in the residual value of used cars.

 

In this situation, used car dealers are extremely afraid of electric vehicles, creating a vicious circle. Pure electric vehicles will not be accepted unless the price is particularly low. As Xia Yun, a used car dealer, said, most used car dealers know that this is an open secret in the industry. Surveys show that in the first half of 2024, the number of used new energy vehicles entering the inventory decreased by 23% year-on-year, and the circulation cycle was extended to over 90 days, which was three times that of fuel vehicles in the same period. The acceptance of the terminal consumer market is sluggish. Consumers' core concerns are mainly focused on battery safety (about 58% of consumers), charging convenience (about 32%), and subsequent maintenance costs (25%). This predicament of electric vehicles, where "it's hard to get them and even harder to sell them", has led to a situation in the used car market where "the less people get them, the less people buy them; the less people buy them, the less people get them".

 

In addition, the insurance cost is higher than that of fuel vehicles, which is also one of the "complaints" that electric vehicle owners make fun of. The premium for a fuel vehicle priced at 150,000 yuan is approximately 4,000 yuan. For pure electric vehicles of the same price range, the premium directly surges to 6,500 yuan. If no claims are made within three years, the premium only drops by 500 yuan. Meanwhile, the discount for fuel vehicles during the same period can reach 30%. Lu Yang said that the average annual premium for pure electric vehicles is 20% to 50% higher than that of fuel vehicles of the same price range. The full insurance coverage for some high-end models such as Tesla can reach 8,000 yuan, and even the first-year premium for some popular electric models easily exceeds 10,000 yuan, approaching or even surpassing the premium level of more expensive luxury fuel vehicles. How could this situation of "saving on fuel costs when buying a car and subsidizing the price difference when renewing the warranty" not make electric vehicle owners feel regretful?

 

In response to this, not only are car owners complaining about the high prices, but insurance companies are also "complaining bitterly". Data released by the Financial Regulatory Authority shows that the comprehensive cost ratio of new energy vehicle insurance for the entire industry reached 109% in 2023. This means that for every 100 yuan of new energy vehicle insurance business underwritten by insurance companies, the total cost is 109 yuan. As a result, insurance companies suffered a loss of 6.7 billion yuan in new energy vehicle insurance underwriting in 2023, with a claim ratio of 84%, which is about 10 percentage points higher than that of fuel vehicles.

 

Cui Dongshu believes that the high level of integration of electrification and intelligence in electric vehicles leads to higher maintenance costs, which in turn affects higher insurance premiums. At the same time, from the current perspective of the electric vehicle maintenance system, due to the relatively conservative overall maintenance technology, external maintenance is rather difficult and internal maintenance costs are relatively high. These factors also lead to relatively high premiums. In addition, in terms of the use of electric vehicles, as it is difficult to distinguish between ride-hailing vehicles and private cars, and ride-hailing vehicles have a higher mileage and a relatively higher probability of malfunction, the overall premium for electric vehicles has been raised.

 

However, the industry is gradually exploring feasible solutions to the above-mentioned problems. In the view of Liu Chunsheng, an associate professor at Central University of Finance and Economics, as technology advances and vehicle safety continues to improve, the accident rate will decrease. In addition, insurance companies are also improving their data to achieve precise pricing based on data. This can not only solve the problem of high premiums but also better control risks. Meanwhile, the participation of automakers in after-sales maintenance to reduce losses and the gradual maturation of the maintenance market to lower costs will all lead to a decline in insurance claim ratios and gradually help them get out of the predicament of high premiums.

 

Despite the various "growing pains" that electric vehicles face, the industry remains confident about their future. Over the past decade, the Chinese market has made remarkable progress in the transformation of automotive-related fields and has also become a "testing ground" for global electrification and intelligence transformation. These huge changes are continuously influencing and shaping the preferences of Chinese car consumers. The preferences of consumers are also influencing, urging and compelling the Chinese automotive industry to embrace electrification and intelligence more closely and accelerate related investment. Guan Mingyu, a senior global director and partner of McKinsey and the head of McKinsey's automotive consulting business in China, believes that this mutually reinforcing effect not only determines the future of China's automotive industry but will also gradually influence the international automotive market.

 

Originally published on China Auto News Network on May 19, 2025