Mild hybrids, however, are remarkably similar to gasoline-only powered automobiles when it comes to claims severity
San Diego—Claims frequency for repairable, collision-damaged battery electric vehicles (BEVs) rose to 2.5% in the U.S. and 3.94% in Canada in Q2 2024 — a year-over-year increase of 45% and 39% respectively.
According to the Alliance for Automotive Innovation, EVs represented 9.3% of new U.S. light-duty vehicle sales in Q1 2024, down from 10.2% in Q4 2023. Similarly, in Canada BEV sales fell to 9.2% last quarter, down from 10% in Q4 2023.
S&P Global attributes this “cooling off” period to “market saturation, consumers waiting for new models, or economic factors that might have influenced purchasing decisions.” It remains to be seen whether the decline in sales is temporary or, instead, reflects a broader shift in consumer sentiment.
“Although BEV sales have slowed in 2024, sales of mild and plug-in hybrid (MHEVs) automobiles remain strong,” said Ryan Mandell, Mitchell’s director of claims performance. “Like BEVs, these vehicles can be costlier to repair after a collision when compared to their internal combustion engine, or ICE, counterparts. However, with both an ICE and small electric battery, mild hybrids are remarkably similar to gasoline-only powered automobiles when it comes to claims severity.”
In Q2 2024, average claims severity for repairable MHEVs was $4,726 in the U.S. and $5,302 in Canada, according to the newly released Mitchell Q2 2024 Plugged-In: EV Collision Insights report. For vehicles with an ICE, it was $4,806 in the U.S. and $4,958 in Canada, a difference of $80 and $344, respectively. Since PHEVs rely on a larger, high-voltage battery in addition to a secondary ICE, their average severity is more closely aligned to BEVs at $5,059 versus $5,753 in the U.S. and $5,665 versus $6,534 in Canada.
*Difference between Q2 2024 and Q1 2024
Other notable findings in this quarter’s report include:
• Total Loss Frequency: The total loss frequency of BEVs and 2021 and newer gasoline-powered vehicles — which are comparable in their complexity and cost to repair — remains similar at 9.16% for BEVs in the U.S. versus 9.45% for ICE automobiles and 7.24% versus 8.52% respectively in Canada.
• Repair Operations: Although BEV collision-damage estimates have a higher average number of mechanical labor hours than ICE appraisals (5.21% compared to 8.18%), they are less likely to include frame labor. Frame labor is added when technicians use a hydraulic frame machine to straighten both full ladder frame components and unibody structures. The lack of this labor type on BEV estimates could mean that their design is more effective at preventing crash energy from damaging the vehicle’s structural components.
• Parts Utilization: OEM parts continue to be used more frequently in the repair of BEVs, with 89% of the parts dollars on estimates for repairable BEVs being OEM parts as compared to 65% for ICE automobiles.
To download the Q2 2024 report, visit the Mitchell website.
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