BEV repair costs remain highest

Despite looming trade challenges, battery electric vehicle (BEV) sales remained strong in the first quarter, making up nine per cent of new vehicle sales in the U.S. and 10 per cent in Canada. Collision claims for repairable BEVs also increased, hitting 4.48 per cent in Canada, according to a new report from Mitchell.

The auto technology company’s Q1 2025 edition of Plugged-In: EV Collision Insights noted that BEVs continue to see the highest average repair costs — $7,026 in Canada — though that figure dropped seven per cent from the previous quarter. British Columbia and Quebec led the country — and all of North America — in repairable BEV collision claims, with both provinces reporting BEVs as eight per cent of total claims.

For PHEVs, the average repair costs came in at $6,253, down four per cent, and $5,972 for mild hybrids, down six per cent. ICE vehicle repair costs dropped eight per cent to $5,345.

Tesla’s Model 3 (26.16 per cent) and Model Y (24.09 per cent) led Canada in model claims frequency with Hyundai Ioniq 5 (5.25 per cent) rounding out the top three.

New U.S. tariffs are threatening BEV adoption and could disrupt pricing strategies and supply chains, the report added.

It observed that BEV manufacturers face higher import taxes compared to those producing internal combustion engine (ICE) vehicles, putting them at a disadvantage in the market.

“Tariffs are reshaping the automotive landscape,” said Ryan Mandell, Mitchell’s director of claims performance. “Their impact is especially pronounced for BEV manufacturers, and insurers will need to work closely with repair partners to navigate these changes.”