Original by New Energy View (ID: xinnengyuanqianzhan)

In recent years, the competition in the new energy vehicle market has become increasingly fierce, with some automakers leading the trend and others being left behind.

According to incomplete third-party data, the number of bankruptcies among new energy automakers is increasing year by year. By the end of 2023, only over 40 new energy automakers were operating normally in this sector, a decrease of over 90% compared to the peak in 2018.

Between 2020 and 2023, a number of new energy automakers, including WM Motor, Aichi, Skywell, Byton, Youxia, Yundu, Ziyou, Leading, Hanlong, Lifan, Bojun, Saleen, and Qiantu, have closed down.

High-end automakers like HiPhi and HeChuang are struggling on the "life and death line." Those automakers with monthly sales below 1,000 vehicles may eventually be eliminated by the times.

Currently, most of these bankrupt automakers no longer have after-sales service centers. A small number have been taken over by partners, while others choose to establish dedicated after-sales service teams after delisting to protect the rights and interests of car owners.

According to statistics from the China Automobile Dealers Association, domestic new energy automakers that have filed for bankruptcy or have not produced for a long time involve more than 160,000 existing car owners. This means that such a large group may face doubled repair time, lack of matching parts, and even no place to repair their cars every day.

"The quality warranty promised by the manufacturers has always sounded attractive, but it becomes meaningless once the company goes bankrupt." "Spare parts for niche new energy brands are hard to find, so I won't buy them again." "Used new energy cars are more or less the same, and bankrupt brands may offer better value."...

New Energy View has contacted several car owners, including first-hand and second-hand owners, who have different perspectives on "out-of-print" cars.

So, what happened to consumers who bought "out-of-print" cars?

1. First-hand owners: The ultimate victims

Tuanzi, from Jiulongpo District, Chongqing, welcomed the delivery of her first new energy vehicle in her life, and unwittingly became a witness to Hengchi's struggle towards bankruptcy.

Tuanzi said, "I picked up this 2022 model Hengchi 5 in December last year. When it first went on the market, I did some research and found that its configuration and functions were decent within 200,000 yuan. So, even though I later heard that the Hengchi market was not optimistic, I didn't waver and still wanted to buy it."

Image/Hengchi 5

Source/Screenshot from the internet, New Energy View

At this point, Tuanzi couldn't help but laugh bitterly. When she bought the car, her family members tried to dissuade her, thinking that such an unpopular brand was unreliable.

"They were right. This Hengchi 5 has had issues with its seat ventilation and heating functions," said Tuanzi. Her car comes with a lifetime warranty, and there are still three after-sales service centers in Chongqing, but honestly, sometimes the repair wait time is too long.

For such "out-of-print" cars, some consumers believe that without the automaker, a lifetime warranty is useless, just a blank check.

Owners of WM Motor cars, numbering over 110,000, may be the best proof of this statement.

Mr. Yuan drives a WM E5 and complained to New Energy View that this car has never given him a day of peace since he bought it. Within a week of picking it up, the fault light kept coming on. After finally fixing the fault light, the windshield wiper malfunctioned, and in general, there were constant minor issues.

Image/WM E5

Source/Screenshot from the internet, New Energy View

However, there is still an official after-sales service center, so Mr. Yuan tolerated it.

In October last year, after WM Motor announced bankruptcy, its dealers and after-sales service stores gradually withdrew from the market.

Mr. Yuan said, "Now I have to find a third-party platform for vehicle maintenance and repairs. That's not the most troublesome part. It's hard to find original car accessories, like the windshield wiper that broke recently. I bought one online that wasn't quite the right length, but I'll make do with it."

Owners of cars from bankrupt or near-bankrupt automakers like Skywell, Leading, and Aichi have similar experiences.

Early in April, Mr. Huang's Aichi U5 taillight was cracked in an accident. He immediately went to the store and was told that they were dealers and could help contact the manufacturer, but there was no guarantee, and he would have to pay the normal repair fee. As of now, Mr. Huang's taillight has not been repaired. "I used to drive a Ford Fiesta, and when the taillight broke, I could just find any repair shop to fix it. But with this Aichi car, it's really finicky. I can't find matching taillight parts outside the dealership."

Image/Aichi U5

Source/Screenshot from the internet, New Energy View

Compared to hardware, issues with intelligent software maintenance have also become a headache for car owners. Several WM Motor owners said that the accompanying WM app has long been useless, with functions like the infotainment system and remote mobile control not working properly.

As a result, some "out-of-print" car owners have put their cars up for sale on second-hand car platforms to escape this ordeal.

"The cost of repairs is too high. At first, I wanted to save money by buying a new energy car, but now it's becoming a money pit. Selling it is the best option. Just finding replacement parts is enough to drive me crazy." Tuanzi, who is about to move to Shanghai for work, also listed her car on a second-hand car platform at her family's urging. Recently, she sold her car, which had only traveled over 7,000 kilometers, for 100,000 yuan.

Some car owners believe, "Selling it now might mean taking a 2-3 discount, but it's not worth much anyway. Just be careful not to bump it and drive it for a few more years before scrapping it."

2. Second-hand owners: Delighted?

Some are happy, while others are sad. Compared to the frustration of first-hand owners, some consumers who bought "out-of-print" cars in the second-hand market are delighted, like finding a treasure.

Zhou Xingzhi is an active member of a second-hand car platform. Since his first car purchase, he has changed five or six cars, all of which have one thing in common: they are second-hand and cost no more than 100,000 yuan on average.

Now, the 2018 model WM EX5 he owns, originally priced at just over 200,000 yuan, was purchased for 65,000 yuan half a year ago, equivalent to a 70% discount. He said he considered buying one after hearing about WM's bankruptcy.

Image/2018 model WM EX5

Source/Screenshot from the internet, New Energy View

Regarding the complaints of first-hand WM owners, Zhou Xingzhi seems to take it in stride. "My WM has now traveled 73,000 kilometers and has had minor issues like the fault light coming on. It's indeed inconvenient to find a place to repair it. If it can't be fixed and doesn't affect travel safety, I just let it go. After all, it's cheap."

Obviously, there are not a few new energy car "players" like Zhou Xingzhi.

Lu Ke has been eyeing the Hengchi 5 for a long time but was deterred by its nearly 200,000 yuan price tag. When he visited the second-hand market earlier this year, he found a Hengchi 5 with only 10,000 kilometers on the odometer and a 50% discount, so he made the purchase.

"I dealt directly with the owner and didn't go through a second-hand platform. The owner was nice and told me where the locally operating after-sales service center was, but I don't actually need it. Regular maintenance like changing the air filter and gear oil costs less than 100 yuan and can be done at an ordinary repair shop, saving time and effort. Why go to a 4S shop?"

Undoubtedly, Lu Ke benefited from the "out-of-print" car, as his car has been delivered for less than two years.

Data from the Passenger Car Association shows that the resale value of three-year-old new energy vehicles exceeded 50% in May this year, with pure electric vehicles at 53%.

Image/Resale value of three-year-old new energy vehicles

Source/Screenshot from the internet, New Energy View

For second-hand car owners, models whose prices have been significantly discounted due to the bankruptcy or impending bankruptcy of new energy automakers are like finding a treasure.

However, not all second-hand car owners are satisfied. "How hard is it to find suitable small parts for the car?" "I pray to encounter a scrapped car of this model soon so I can dismantle a suitable part." "Why does it keep showing that the charging is not suitable?"... Complaints are never lacking in car owner groups.

A salesperson from a second-hand car platform also revealed to New Energy View, "Models from bankrupt automakers are discounted by more than twice the normal brands. We rarely handle cars like WM Motor because they are difficult to replace and easy to get stuck with."

In the face of this phenomenon, industry insiders remind that second-hand cars from bankrupt automakers may have quality assurance issues, and future maintenance costs may be higher. Some car owners may choose to purchase them for economic reasons, but regardless of the purchase factors, they should fully understand the condition of the car.

3. Self-rescue efforts in various ways

In fact, automaker shutdowns are not limited to new force brands.

Joint ventures like Acura and Mitsubishi, which were once popular in the Chinese market, have also withdrawn. However, compared to new force brands without a "backer," they often have the financial resources and systems to continue providing after-sales and other services, ensuring that consumers do not have a cliff-like driving experience.

Tian Tian, a girl born in the 1980s, plans to buy a new car soon. She said, "I like to buy niche cars, but I probably won't choose a new force brand. After all, even if a brand like Acura goes bankrupt, there's still GAC to provide after-sales service. But if a new force brand goes bankrupt, there's really nowhere to go. They say they offer eight years of free warranty, but how long can some brands survive?"

Industry insiders said that there are already regulations in the automotive industry requiring bankrupt automakers to ensure 10 years of parts supply. If an automaker only stops producing a certain model, it will manufacture some extra parts and store them in the warehouse. For example, Toyota and Honda's parts supply periods must not be less than 13 and 15 years, respectively.

Image/Excerpt from "Implementation Measures for the Sales Management of Automobile Brands"

Source/Screenshot from the internet, New Energy View

However, very few new force brands can fulfill this promise. After all, most of them go bankrupt due to financial constraints, poor sales, and other reasons, making it difficult for them to allocate funds to protect their sold vehicles.

So, are car owners who have already bought cars from bankrupt new force brands doomed?

It is understood that these "out-of-print" car owners have already formed a new habit. When encountering problems, they first open their location and find the nearest private new energy vehicle repair shop instead of contacting the automaker's official customer service.

At the same time, in the car owner groups of these bankrupt automakers, over 80% of the car owners have united and help each other when someone seeks help in the group.

Since joining the national WM car owner group, Zhou Xingzhi has always eagerly shared his car repair tips. "You can first go to a new energy repair shop. Some parts are interchangeable. If it doesn't work, you can try second-hand platforms like Xianyu. You can always find people selling parts because they don't need their cars for various reasons. Of course, there are also those who specialize in reselling used car parts."

And HiPhi car owner Zhang Qiang said that HiPhi has a dedicated car owner mutual aid group where they can buy parts. It's more convenient if they can install them themselves. If not, they can go to any roadside repair shop for replacement and only pay for labor costs.

Not all bankrupt or near-bankrupt new energy automakers are "slacking off." For example, HiPhi started live streaming in March this year and said that all income from live streaming sales will be used for first-line after-sales service to protect car owners' rights and interests.

Image/HiPhi live streaming room

Source/Screenshot from the internet, New Energy View

Therefore, car owners who have bought "out-of-print" cars don't seem to need to be too pessimistic.

In 2024, the reshuffle in the new energy sector is still continuing. Without a decisive victory for automakers, it is difficult for major new energy brands to claim that they have "made it." Facing this severe situation, new energy brands should not only focus on product quality but also on after-sales service for sold vehicles, delivering on their promises and not letting quality assurance commitments become empty promises.

Even so, the driving experience of these "out-of-print" car owners will still be much worse than mainstream models. Therefore, to avoid unnecessary trouble, we advise consumers to remain rational when buying a car, not to spend money unnecessarily and waste time and emotions.

(All names in the article are pseudonyms.)