Mitchell, a leading innovator in auto physical damage technology, has published its Q1 2025 edition of the Plugged-In: EV Collision Insights report. This quarterly update highlights how recent U.S. tariffs may hinder the growth and adoption of battery electric vehicles (BEVs), placing them at a disadvantage compared to internal combustion engine (ICE) vehicles due to higher import taxes.
“Shifting trade policies are significantly altering the automotive sector,” noted Ryan Mandell, Mitchell’s director of claims performance. “Tariffs are influencing everything from component pricing to supply chain strategies and vehicle assembly. While all automakers are affected, BEV manufacturers face the brunt of these changes. Insurers must work closely with suppliers and collision repair networks to adapt to the evolving landscape and prepare for continued volatility.”
Before the implementation of the new automotive tariffs, BEV sales remained robust in the first quarter, making up 9% of new vehicle sales in the U.S. and 10% in Canada. Following a second consecutive year of record-breaking sales, the number of electric vehicles on the road continued to grow, leading to a further rise in collision claims for repairable BEVs—reaching 3.12% in the U.S. and 4.48% in Canada during the last quarter.
Key findings from the report include:
- BEV Sales and Claims Rising: Prior to the tariff enforcement, BEVs accounted for 9% of new vehicle sales in the U.S. and 10% in Canada. As BEV adoption grows, so does their collision claim frequency—3.12% in the U.S. and 4.48% in Canada in Q1 2025.
- Claims Severity: BEVs still lead in repair costs compared to plug-in hybrids, mild hybrids, and ICE vehicles. However, the average repair cost fell to $5,927 in the U.S. and $7,026 in Canada, reflecting a 10% and 7% quarter-over-quarter drop, respectively.
- Total Loss Rates: Around 11% of collision-involved BEVs were deemed total losses, matching the rate for new ICE vehicles and coming in 12% lower than the overall ICE vehicle average.
- Parts Usage: Repairs for BEVs relied heavily on OEM parts, which made up 88% of the parts spend, versus 64% for ICE vehicle repairs.
- Regional Trends: BEV collision claims were most prevalent in areas with high BEV adoption rates. British Columbia and Quebec led North America, with BEVs comprising about 8% of all repairable claims in each region.
