Five automakers, including BYD, are sued for monopolizing repair rights. China's new energy vehicle industry faces an "essential lesson" when going global.

When BYD Dolphin landed in Australia at a disruptive price and Chinese new energy vehicles ranked among the top in the local sales list, almost everyone believed that the overseas expansion of Chinese new energy vehicles was on the right track. The mature three - electric technology, competitive prices, and intelligent experience far surpassing that of traditional fuel vehicles in the same class are rapidly capturing this continent known as the "living fossil of the developed - country automotive market."

However, recently, an unexpected investigation has poured cold water on this high - flying momentum.

01 Event Review: What Exactly is the "Right to Repair"?

According to Australian media reports, the Australian Competition and Consumer Commission (ACCC) has announced that it will conduct an investigation into several Chinese new energy vehicle manufacturers, including BYD, Zeekr, XPeng, smart, and Leapmotor. The core of the accusation is neither product quality issues nor safety standards, but a topic that domestic consumers may not be very familiar with yet, but is extremely sensitive in overseas mature markets - the "right to repair."

According to the reports, Chinese new energy vehicle manufacturers such as BYD, Zeekr, XPeng, smart, and Leapmotor are accused of failing to comply with the requirements of the Motor Vehicle Service and Repair Information System (MVIS). That is to say, these manufacturers have not timely provided independent repair shops with the core technical data, diagnostic software, and parameters required for maintenance. As a result, when a vehicle breaks down, consumers must send their cars to brand - authorized 4S stores instead of choosing independent repair shops that are more price - competitive and closer.

This behavior is considered to constitute a monopoly in the repair market, which not only restricts consumers' choices but also increases the maintenance cost. The Australian regulatory agency said that if manufacturers fail to solve this problem, they may face a fine of up to 47 million RMB. This incident is currently regarded as a major test of the service standards and compliance of Chinese new energy vehicles in the global market.

To put it simply, at this stage, independent repairers in Australia have started to complain collectively. They find it difficult to obtain the key information, diagnostic tools, software, and original spare parts required for repair from these emerging brands.

This means that if an electric vehicle of BYD or Zeekr breaks down, especially in the complex electronic system, the only option for the owner seems to be the officially authorized 4S store. This may not only lead to higher maintenance costs and longer waiting times but also fundamentally deprive consumers of their right to choose. It also puts the large independent repair industry at a survival crisis in this new energy wave.

Behind this, we can see a sharp collision between two business models and cultures.

For a long time, the traditional fuel vehicle industry has formed a mature and relatively open after - sales ecosystem. Car owners can freely choose to go to the official service center or visit the decades - old mom - and - pop shop on the corner. However, as cars are becoming more and more like "mobile phones on wheels," a "walled - garden" model from the technology industry has been quietly introduced, trying to lock in everything about users within the brand's own ecosystem.

In fact, the "right to repair" has long been an increasingly concerned topic globally, not limited to the automotive industry but also involving multiple fields such as smartphones and household appliances. This issue essentially concerns the following points.

Firstly, it is about consumer freedom and rights. Obviously, if manufacturers restrict the disclosure of maintenance information, consumers cannot freely choose where to repair their cars and must rely on official channels. This situation is clearly unfavorable to consumers, especially those who hope to reduce maintenance costs.

Secondly, it is about transparency and fairness. When maintenance information and necessary spare parts are only available through official channels, this practice makes the choice of maintenance and spare parts lack transparency. If independent repair shops cannot obtain technical data, it means they cannot operate normally. This not only affects the survival of repair shops but also distorts the entire industry's competitive environment.

Thirdly, it is about the industry ecosystem and market competition. Free competition in the repair market is crucial for consumers. If maintenance services can only be provided by officially authorized centers, it not only increases the economic burden on consumers but also restricts the emergence of more excellent repair shops in the market, resulting in an unhealthy industry ecosystem.

Finally, it is about brand trust. For manufacturers, maintenance transparency directly affects the brand's trustworthiness. Consumers often evaluate the overall value of a brand based on its performance in after - sales service. If a manufacturer shows opaque behavior or suppresses independent repair shops in the right - to - repair issue, users' trust will be severely damaged, which will in turn affect the brand image and market share.

02 Defense: About Safety and Intellectual Property?

Although it is the norm in China, we have no intention of speculating that Chinese brands are deliberately building "monopoly" barriers. In the domestic market, consumers are often used to the efficient approach centered around the official service network.

In China, the dense urban service outlets, efficient direct - sales and authorization systems, and relatively low labor costs make after - sales problems less prominent. However, in Australia, a mature market with high labor costs, a prevalent DIY culture, a vast territory with a sparse population, and specific legislation for the "right to repair," this logic clearly does not work.

Australia passed the Motor Vehicle Repair Information Sharing Program Act in 2022, legally requiring automobile manufacturers to provide fair and timely access to independent repairers with proper qualifications. The ACCC's current investigation aims to check whether these new market players truly understand and strictly abide by the local rules of the game, rather than just treating the legal provisions as a dead letter.

Of course, in addition to the above factors, Chinese new energy brands also have their own considerations, such as safety issues. New energy vehicles, especially pure electric vehicles, have highly complex battery systems, electronic control systems, and autonomous driving assistance systems. If non - authorized maintenance personnel access these systems, there may indeed be safety hazards. Therefore, conducting maintenance through authorized service centers is indeed a way to ensure safety and avoid technical risks.

Moreover, as innovative enterprises, the core technologies of Chinese new energy vehicle manufacturers, especially battery management systems, intelligent connected technologies, and autonomous driving systems, are the core competitiveness of the companies. Chinese automakers' reluctance to disclose relevant information may be related to their unwillingness to make the relevant technical information public.

Although these reasons are quite reasonable, from the perspective of consumer rights, this practice may cause dissatisfaction and controversy. Excessive technical secrecy and restrictions on maintenance channels may be regarded as manufacturers choosing to ignore consumers' basic right to choose while maintaining market control and their own interests.

03 Potential Impact: Consequences for Enterprises, Consumers, and the Industry

For consumers, limited repair options may mean higher costs, lower service quality, and a worse user experience, which will undoubtedly affect their car - buying decisions. As the global demand for new energy vehicles increases, the issue of consumer rights will become an important topic that manufacturers have to face in international market competition.

In addition, this incident may prompt other countries and regions to strengthen the implementation of relevant regulations in the new energy vehicle field, requiring manufacturers to enhance the transparency and fairness of maintenance information while ensuring vehicle technology safety. More attention will be paid to the survival space of independent repair shops, promoting the healthy development of the aftermarket.

Therefore, this incident is not so much a sudden crisis as a "compulsory course" that all Chinese automakers going global must preview and make up for in advance. It shows that globalization is by no means as simple as selling cars overseas. It means that brands need to truly shift from a "product - centric mindset" to a "market - centric mindset" and a "user - centric mindset," to deeply understand, respect, and actively adapt to local laws, cultures, and consumption habits.

How to balance the closed "tech - company" model with the open "automotive - citizen" role? How to open up necessary maintenance data and permissions to the market while ensuring the safety of core technologies such as batteries and electronic controls and intellectual property rights? These are not only questions that BYD and Zeekr need to answer immediately but also topics that all Chinese automotive brands with global ambitions must think about in advance.

Conclusion: The Right to Repair is an Unavoidable Test for Brands Going Global

From "selling cars" to "maintaining cars," this is an issue that every automaker will inevitably face in the process of globalization. Although the internationalization process of Chinese new energy vehicle manufacturers is rapid, on the road to globalization, how to properly handle issues such as transparency, consumer rights, and brand reputation is the key to long - term and stable development.

The issue of the right to repair is not insoluble. The key lies in whether manufacturers can truly be open, transparent, and efficient from the perspective of consumers. Only in this way can they win the trust of global consumers.

This article is from the WeChat official account "Cheyun" (ID: cheyunwang), author: Lu Zhiyao, published by 36Kr with authorization.