Mitchell reports U.S. BEV claims dropped for the first time during Q2
The number of battery electric vehicle (BEV) claims dropped in the U.S. for the first time last quarter, according to Mitchell International’s Q2 “Plugged-In: EV Collision Insights” report.
Ryan Mandell, Mitchell’s vice president of strategy and market intelligence, said the 7% drop is part of a significant shift in the country’s EV landscape.
“This decline coincides with a 6% year-over-year reduction in new BEV purchases despite strong sales in early 2025,” he said in a press release. “Meanwhile, claims for MHEVs [mild hybrid electric vehicles] continue to rise, reaching approximately 5% in the U.S. and 4% in Canada. That is a jump of 2% and 9%, respectively, over the previous quarter and 21% and 29% over the previous year.”
Mitchell says, unlike their all-electric counterparts, MHEV sales are increasing, as is the claims frequency for repairable MHEVs, which rely on a small electric motor to assist the gasoline engine.
“In Q2 2025, it rose to 4.62% in the U.S. and 4.33% in Canada, a jump of 2% and 9% respectively over the previous quarter,” the report states. “For collision repairers and auto insurers, this steady growth represents an opportunity to focus on vehicles that combine cost advantages like automobiles with an internal combustion engine (ICE) and less specialized training than is necessary for BEVs.”
Mandell told Repairer Driven News that MHEVs rely on a 48-volt system, which doesn’t require special certification due to the voltage levels.
“Their repair also does not necessitate the use of special insulated tools and personal protective equipment (PPE),” he said. “Since BEVs run 400-volt or more, extra precautions, training, and tooling are required to safely work on them. In addition, it is far more common that the high-voltage batteries in BEVs will need to be removed as part of the repair process than it is for mild hybrids, where such a requirement is rare.”
Mandell notes in the report that BEV demand is being tested with U.S. consumers facing the expiration of federal tax incentives in September and a proposal from the Environmental Protection Agency to repeal current greenhouse gas emission regulations.
The report notes that according to Cox Automotive, General Motors — the largest U.S. automaker — became one of the strongest challengers to Tesla during Q2, doubling its BEV sales and providing buyers with more alternatives. Mitchell says traditional automakers, including Hyundai, Kia, Toyota, Ford, and Chevrolet, could capture most of the remaining BEV market share in Canada as Tesla fell 16% in Q2 to No. 8 among likely shoppers.
To boost sales, auto manufacturers have expanded BEV pricing discounts, which reached an all-time high of nearly $8,500 per vehicle during Q2, according to the Mitchell report.
To date, tariffs and the global trade war have not substantially impacted used vehicle pricing, according to the report.
Total loss market values were relatively stable in Q2, averaging $30,172 for BEVs and $13,850 for ICE vehicles. Mitchell says that represents a 2% decrease, which was less than 1% over Q1.
Plug-in hybrid electric vehicles (PHEVs) saw a 3% decline in average total loss market value, while MHEVs increased in value by close to 2%.
Average severity for repairable vehicles remains the highest for BEVs, at $5,903 in the U.S. and $6,633 (CAD) in Canada. PHEVs were a close second at $5,254 and $5,916 (CAD), respectively, followed by ICE vehicles in the U.S. ($4,938) and MHEVs in Canada ($5,742 CAD).
While the percentage of parts repaired on BEVs increased by 12% in Q2 compared to Q1, it still fell short of ICE vehicles, which were at 14%, according to the report.
Mitchell found that OEM parts are still used more frequently in BEV repairs, with 83% of parts dollars on estimates for repairable vehicles designated for OEM parts versus 63% for ICE alternatives.
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