China's brutal EV price war is leaving a growing trail of “orphan cars” – vehicles whose manufacturers have gone bankrupt or exited the market, leaving owners with no official repair network, no spare parts and no one to answer warranty claims. According to consultancy Liqi Consulting, as of May 2026, 23 new-energy vehicle companies in China had either been declared bankrupt, entered liquidation or restructuring, or effectively ceased operations, together having sold 850,000 passenger cars.
The problem is not limited to startups. Traditional luxury brands are also retreating. Last month, several major dealer groups closed flagship showrooms for premium marques: Lei Shing Hong shut its largest Mercedes-Benz 4S store in Nanjing, Zhentong Auto closed Hunan's first BMW 4S outlet, and Meidong Auto's Lexus dealership in Tianjin followed. Porsche has said it will cut its China sales network by a third, from 120 to 80 stores, by the end of 2026. Official figures cited in the report show Mercedes-Benz, BMW, Audi and Porsche sales in China fell 28%, 20.4%, 19.3% and 32% year-on-year respectively in the first half of 2026.
When a dealer closes, the carmaker usually still backs warranty work, so owners face inconvenience rather than abandonment. But when a brand withdraws entirely, the situation worsens. Chevrolet suspended new-car retail in China last month, with no new models or refreshes planned. Polestar closed its last direct-store in China in October last year and moved to online sales, with Volvo handling aftersales. Polestar owners have complained about poor service from Volvo's network, and recently endured a “network outage”: when the free three-year in-car data allowance expired, the system cut connectivity with no way to renew, disabling live navigation and streaming until Polestar restored a paid subscription weeks later.
Why orphan cars are hard to fix
The core problem for owners of truly orphaned EVs is that their battery, motor and electronic control systems are encrypted. Independent garages lack the manufacturer's diagnostic equipment and fault codes, so they cannot safely repair the high-voltage systems. Carmakers designed this lock-in to protect aftersales revenue and proprietary technology; when the company dies, the lock becomes a wall. Spare parts stop being produced, and several major property insurers have reportedly refused to underwrite damage coverage for such vehicles, though one industry insider told the report that top insurers with better data models can still price the risk.
Chinese regulations require suppliers to guarantee at least 10 years of spare parts and service for discontinued models. But for a bankrupt company, employee wages and tax debts take priority over owner support, meaning the legal promise often cannot be fulfilled. “The store closes, the factory remains; the brand exits, the parent company may still help; but when the carmaker goes bankrupt, the last responsible entity disappears,” the report concludes, warning that as the price war intensifies, more brands and dealers will fall, and the ranks of orphan-car owners will only grow.
