Core Viewpoint - The traditional auto repair industry in China is undergoing significant transformation due to the rapid growth of the electric vehicle (EV) market, leading to a decline in maintenance demand for internal combustion engine (ICE) vehicles and increased competition from online platforms [2][6][8]. Group 1: Industry Changes - The number of traditional auto repair shops in China decreased by 18.7% from 2023 to 2025, dropping from 423,000 to 344,000 [6]. - In major cities with high EV penetration, traditional repair shops saw a reduction of over 25% [6]. - The average monthly revenue for a repair shop has plummeted from 137,000 yuan in 2023 to 16,000 yuan in 2024, a decline of over 750% [6]. Group 2: Impact of Electric Vehicles - The maintenance demand for EVs is significantly lower than for ICE vehicles, with five EVs requiring maintenance equivalent to just one ICE vehicle [8][9]. - The average annual maintenance value per vehicle remains stable at 2,500 to 2,600 yuan, but consumer willingness to spend is declining, with the percentage of customers opting for only one service item increasing from 62% in 2021 to 66% in 2024 [8] [9]. Group 3: Competitive Landscape - The entry of internet companies like Tuhu and JD into the auto repair market has increased transparency and competition, leading to lower profit margins for traditional repair shops [5][8]. - Insurance revenue, which used to contribute 30% to 40% of profits for repair shops, has now dropped to less than 10% due to insurance companies reducing repair costs [9]. Group 4: Transformation Strategies - Many repair shop owners are turning to social media to attract customers by sharing repair knowledge and success stories [11]. - Some shops are focusing on community services and reducing operational costs to achieve growth, with monthly revenues of 50,000 to 100,000 yuan and net profits of around 20,000 yuan [11]. - The industry is encouraged to invest in EV maintenance training, establish partnerships with EV manufacturers, and enhance digital capabilities to adapt to the changing market [12].