As electric vehicles evolve from niche products to mainstream choices in China, the rapid growth of the new energy vehicle (NEV) market is becoming a widely accepted reality. Recent data released by the Ministry of Public Security shows that in the first half of this year, China’s NEV ownership reached 24.72 million, accounting for 7.18% of the total number of vehicles. Notably, pure electric vehicles make up 73.35% of this figure, totaling approximately 18.13 million.
Despite the increasing prevalence of these vehicles, concerns have arisen regarding safety and reliability, particularly following incidents of spontaneous combustion. According to relevant regulations, NEVs are classified as motor vehicles and are subject to annual inspections in accordance with the Implementation Regulations of the Road Traffic Safety Law of the People’s Republic of China. Recently, both NEVs and gasoline vehicles have followed the same inspection protocols.
Zhang Xiang, a researcher at the Innovation Research Center for the Automotive Industry at Beifang University of Technology, noted that NEVs include key components such as the battery, motor, and electronic control systems, for which there currently are no unified inspection standards, and many detection devices are still under development. “At the same time, NEVs exhibit higher accident and claim rates,” Zhang remarked. He indicated there is a strong call within the industry for regular inspections of NEVs, particularly their three electrical systems, highlighting the urgent need for tailored safety performance inspection standards for these vehicles.
Recently, the national standard titled “Inspection Regulations for the Operating Safety Performance of New Energy Vehicles” was officially announced, set to take effect on March 1, 2025. This new regulation outlines inspection procedures, items, and requirements applicable to pure electric vehicles and plug-in hybrids, with other types of NEVs following suit.
A detailed reading of the regulation reveals that it builds upon existing inspection standards for motor vehicles, while introducing specific scrutiny for the power battery, drive motor, electronic control systems, and electrical safety performance of NEVs. Additionally, the regulation includes more precise guidelines concerning the inspected vehicles, inspection environment, equipment, methodology, and outcomes.
“Incorporating the three electrical systems into the annual inspection not only ensures the safe usage of NEVs but also gives owners peace of mind,” Zhang analyzed. He emphasized that the publication of these inspection regulations marks a step towards a more mature and standardized NEV industry in China.
For NEV owners, the introduction of these new inspection standards is largely viewed as a positive development. Enhanced scrutiny means that potential safety issues will be identified more readily, thereby increasing the safety of drivers and others on the road. “After the new standards are implemented next year, I’ll make sure to get my vehicle inspected as soon as possible,” said Wu Qing, an NEV owner from Beijing. “I want a clearer understanding of my vehicle’s basic safety condition, so I can drive with confidence.”
However, some NEV owners expressed concerns about passing the new inspection standards. Drivers of ride-hailing electric vehicles noted that their high usage frequency raises challenges for battery lifespan and performance. “My NEV has to be charged at least once a day to meet operational demands,” shared Li, a ride-hailing driver in Harbin. “I’m really worried that a decline in battery performance could lead to an ‘unsatisfactory’ inspection result, which would seriously affect my job.”
Upon reviewing the inspection regulations, it appears that battery capacity density is not a specific inspection criterion; mandatory inspections focus on battery safety and electrical system security, with a breakdown into sub-items that assess charging and discharging conditions. Battery capacity retention is optional, indicating that capacity density is not a primary concern within the new inspection framework.
According to Ouyang Minggao, an academician at the Chinese Academy of Sciences, battery safety is of utmost importance. “Thermal runaway is the main cause of spontaneous combustion in NEVs,” he explained. If a battery’s temperature rises uncontrollably due to various triggers, it can lead to rapid flames and high temperatures within the battery pack, ultimately causing the entire vehicle to catch fire.
As of June this year, 387 recalls related to NEVs have been documented in China, affecting approximately 7.017 million vehicles, with specific concerns related to the fire risk posed by design flaws in power batteries. Regulations governing the operation of lithium iron phosphate and ternary lithium batteries specify a maximum charging temperature of 65°C and 60°C, respectively, aligning with safe operating temperatures and falling below levels that trigger thermal runaway.
The new regulations also introduce safety checks for the drive motor and electronic control systems as optional testing items. Zhang sees this as a positive step, allowing owners to better understand their vehicles while also pushing testing companies to develop the necessary capabilities and technologies.
The release of these regulations, keenly anticipated by the automotive testing sector, has attracted considerable attention, with several companies already preparing for the upcoming changes. For example, 24 testing stations under Dulong Technology are among the first approved pilot units for the safety inspections of NEVs.
Amid the ongoing growth of the NEV market, vehicle insurance for electric cars plays a critical role in assuaging consumer concerns and facilitating broader adoption. However, some NEV owners report that their insurance premiums significantly exceed those of traditional gasoline vehicles, sometimes rising even in the absence of claims. Additionally, challenges with parts availability have led to circumstances where insurers may refuse coverage.
Wu Qing articulated this frustration: “I bought an NEV to save on travel costs, only to find that the savings on fuel went into my insurance premiums instead.” Data from the China Banking Insurance Regulatory Commission indicates that the average insurance premium for NEVs is about 21% higher than for conventional cars, with claims ratios approaching 85%.
This situation has drawn the attention of regulatory bodies, leading to a directive aimed at reforming the insurance sector, especially regarding NEVs. Pan Helin, an expert with the Ministry of Industry and Information Technology, noted that the implementation of the new regulations could alleviate these disparities. He believes it will lower NEV insurance premiums and enable insurers to achieve more stable and reasonable returns, thus addressing significant profitability challenges within the sector.
“Given the new inspection requirements, insurers will be better positioned to develop specialized insurance products tailored to the unique risks associated with NEVs, such as policies focused on the power battery and drive motor,” Pan suggested. As manufacturing costs decline and repair technologies improve, it is anticipated that NEV insurance premiums will become more reasonable.
Moreover, these regulations are also expected to positively impact the used NEV market. According to a staff member at Dongche Di, challenges in assessing the condition of key NEV components have previously hindered transactions, affecting resale values. “With the upcoming implementation of the new inspection regime and advancements in testing technologies, these issues will be effectively addressed, promoting healthier development of the used NEV market,” the staff member noted.
It is important to highlight that the new regulations impose several obligations on automotive manufacturers. They must enhance the research and testing of critical components to ensure compliance with the updated inspection standards and tighten controls across the production process.
“The new inspection policies will usher a significant number of NEVs into the maintenance realm, posing a challenge to manufacturers’ after-sales service networks. Companies need to establish more comprehensive maintenance and service systems to effectively manage the anticipated increase in NEV maintenance requirements,” Zhang cautioned.
