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(Yicai) March 28 -- Chinese vehicle repair garages that specialize in gasoline-powered cars are under pressure due to a lack of business as although the number of autos on the road in China has grown rapidly in recent years, many of these are electric cars which require a completely different set of skills and specialized equipment to fix.
Business has dropped by at least 30 percent from the good old days, the owner of a small auto repair shop in Zhengzhou, central Henan province told Yicai.
The workshop used to employ five or six apprentices and workers, but now it’s just him and his family running the business, he said. When things were busy, there were more than 10 similar garages around him, and they were all struggling to keep up with demand. But now, everything has changed.
Working on electric cars feels like a "different universe," said the shop owner, who is skilled in gearbox repairs. The knowledge and experience he has accumulated over the years no longer apply.
Repairing fossil fuel-powered cars is all about fixing mechanical parts and the technician's experience is very important, he said. But when something goes wrong with the computers, data or chips in NEVs, mechanics like him really can’t do much.
The shop owner said he did look into shifting focus to electric cars, but the cost to buy the necessary tools for one work station would come to over CNY150,000 (USD20,650). Plus, he would need to requalify in electrical operations, which he feels is too much for him to handle at his age.
Repair shop owners who can’t keep up are shutting down or selling their businesses. In Zhengzhou alone, almost 100 auto repair shops are listed for sale on asset trading websites, according to Yicai research. In larger cities such as Chengdu and Chongqing, the number of such garages up for sale is around 200.
Car manufacturers haven’t yet designed universal decoding equipment and fault-reading devices for NEVs which are available to third-party repair garages, said Li Yi, chief operations officer of Tmall Auto Care. This makes even basic tasks like changing air filters and routine maintenance difficult for independent shops to handle.
Traditional repair garages should seek new business opportunities, Li said. NEV owners are generally younger than gasoline car owners and are more concerned with their vehicle's appearance, which means that they are willing to spend in these areas.
Therefore, services such as car washes, exterior painting, waxing and tire replacement present new opportunities for repair shops. Tmall Auto Care’s franchise stores are already providing these services as a starting point to gain a foothold in the NEV maintenance market, he added.
Editor: Kim Taylor