Shrinking Collision Claims for BEVs in America for the First Time, Surging Hybrid Claims
In the second quarter of 2021, the electric vehicle (EV) and hybrid market in North America underwent significant changes. Here's a summary of key findings from the Mitchell report.
The percentage of parts repaired on battery electric vehicles (BEVs) slightly increased over the previous quarter but still lagged behind internal combustion engine (ICE) automobiles, accounting for 14% of the total. In contrast, mild hybrid electric vehicles (MHEVs) witnessed a nearly 2% increase in value.
OEM parts continue to dominate BEV repairs, with 83% of the parts dollars on estimates for repairable vehicles designated for OEM parts. The average severity for repairable BEVs remained the highest in the U.S. at $5,903, and in Canada at $6,633 (CAD).
The total loss market values for BEVs saw a 2% decrease in the U.S., averaging $30,172, while PHEVs experienced a 3% decline. The number of BEV claims in the U.S. decreased by 7%, but MHEV claims increased by 2% and 9% in the U.S. and Canada, respectively.
Auto manufacturers increased BEV pricing discounts, reaching an all-time high of nearly $8,500 per vehicle in the second quarter. The report also highlighted a 6% year-over-year reduction in new BEV purchases in the U.S. due to the impending expiration of federal tax incentives in September.
On a positive note, the collision claims frequency for repairable BEVs decreased in the U.S., while MHEV claims continued to rise, reaching approximately 5% in the U.S. and 4% in Canada. The Mitchell report also examined the impact of changes to government incentive programs on consumer adoption of BEVs on both sides of the border.
Two major developments in the battery production sector were also noted. Panasonic opened a $4 billion lithium-ion battery plant in De Soto, Kansas, aiming to employ 4,000 workers by the end of 2026. Additionally, Tesla opened a new lithium-ion battery pack factory in North America with a production capacity of nearly 32 GWh, and plans to employ at least 4,000 workers by the end of 2026.
The Environmental Protection Agency proposed to repeal current greenhouse gas emission regulations, which could potentially influence the future of the EV and hybrid market. As the industry continues to evolve, the Mitchell report provides valuable insights into the trends and challenges facing the sector.
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