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New U.S. tariffs are putting the brakes on the rising popularity of battery electric vehicles (BEVs). According to Mitchell’s Plugged-In: EV Collision Insights report for Q1 2025, these tariffs are shaking up the automotive industry, making it tougher for BEVs to compete with traditional internal combustion engine (ICE) vehicles. As BEV sales climb, insurers and repair shops face new challenges in managing higher costs and adapting to an uncertain future. While electric vehicles are gaining ground, the road ahead may be bumpier than expected.
Key Highlights:
- BEV sales hit 9% of new vehicle sales in the U.S. and 10% in Canada in Q1 2025.
- Tariffs are hitting BEV makers harder than ICE manufacturers.
- Repair costs for BEVs averaged $5,927 in the U.S. and $7,026 in Canada last quarter.
- 11% of collision-damaged BEVs were totaled, matching new ICE vehicles.
- OEM parts dominate BEV repairs at 88%, compared to 64% for ICE vehicles.
Before the tariffs kicked in, BEVs enjoyed a strong start to 2025, making up 9% of U.S. new vehicle sales and 10% in Canada. More electric cars on the road mean more collision claims—up to 3.12% in the U.S. and 4.48% in Canada. But the tariffs are raising costs for parts and assembly, which could push BEV prices higher and slow their growth. Ryan Mandell, Mitchell’s director of claims performance, points out that BEV manufacturers rely heavily on imported tech, making them more vulnerable than ICE automakers.
Repairing BEVs isn’t cheap either. Last quarter, the average repair cost was $5,927 in the U.S. and $7,026 in Canada—down slightly from Q4 2024 but still higher than for ICE vehicles. About 11% of wrecked BEVs end up as total losses, a rate equal to new ICE cars but lower than the ICE average. Plus, 88% of BEV repair costs go to OEM parts, far more than the 64% for ICE repairs.
Regionally, BEV adoption varies. In North America, British Columbia and Quebec lead the pack, with BEVs accounting for roughly 8% of repairable claims. As tariffs reshape the market, insurers and repair pros must team up to tackle rising costs and keep the BEV revolution rolling.
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