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EV Reliability Surges While Combustion Cars Lag in Breakdown Rates – Securities.io


Electric vehicles (EVs) continue to experience growth worldwide, offering a promising solution to the problem of CO2 emissions. Besides reduced greenhouse gas (GHG) emissions, EVs also offer benefits such as zero tailpipe emissions, lower fuel and maintenance costs, and government incentives. Thanks to these benefits, the global EV sales increased by 25% in 2024 to reach 17.1 million units.

However, the question is, are these electric cars really reliable? Also, how do they compare to combustion engines, which continue to dominate the roads? A report on ‘Breakdown Statistics’ from the ADAC tries to answer these very questions.

The ADAC, or the Allgemeiner Deutscher Automobil-Club, is the largest automobile association in Europe with around 21 million members. 

The Germany-headquartered organization’s most well-known service is roadside assistance, commonly referred to as the “Yellow Angels.” In 2024, the ADAC was called out to over 3.6 million breakdowns, a slight increase from 3.5 million in 2023.

In its latest report, the ADAC provided breakdown statistics based on the analysis of 159 model series from about twenty different brands. It included all the breakdowns that occurred in 2024 and affected vehicles that were first registered between 2015 and 2022.

The statistics do not cover self-inflicted causes, such as empty fuel tanks in breakdowns. They only use model series that have had at least 7,000 registrations in the past two years. If this condition is met, all vehicle model years with at least 5,000 registrations are displayed.

With this, the aim is to find out which cars offer the most reliability and which ones give their users the worst experience. 

More Breakdowns Seen in Electric Cars in 2024

In 2024, the ADAC was called out 43,678 times by electric car owners, a 46% increase from the previous year. So, e-cars suffered far more problems last year.

However, these numbers shouldn’t be a concern because they are a result of an increase in the number of EVs on the road. Naturally, the number of e-car breakdowns will increase as the number of e-cars grows.

These increased numbers actually help the ADAC build a broader database to evaluate electric cars and determine whether they break down more often than combustion engines.

Unlike e-cars, which only began to gain traction in the 21st century and really provided valuable data in the last few years, cars with combustion engines have been running on the roads for decades. Combustion engines have been the primary power source for automobiles for over a century, and their use is still widespread today.

EVs are still pretty young, making it difficult and inaccurate to compare the two. As the ADAC has noted, just two years ago, the comparison was limited to vehicles first registered in 2020. 

Now, for the first time, the evaluation allows for the first three registration years (2020, 2021, and 2022) to be compared. With more data available for comparison, this can provide a much better idea of what is actually happening in the transport sector.

And what this reveals is a positive picture for electric cars, which have a lot fewer breakdowns than their traditional counterparts.

Click here to learn about the common EV myths.

Combustion Engine Cars Having Far Greater Breakdowns

Combustion Engine Cars

According to the ADAC’s breakdown statistics, combustion-engine cars between two and four years old have a breakdown rate that is up to 147% higher than that of electric cars of the same age. 

The ADAC Road Patrol had to respond to 12.9 breakdowns per 1,000 existing vehicles for four-year-old combustion engines last year, compared to just 8.5 for electric vehicles.

On combining the current two- to four-year-old vehicles, the ADAC counted 9.4 breakdowns for combustion engines but only 3.8 for electric cars in 2024.

Notably, the breakdown frequency relative to the fleet is declining for electric vehicles to a far greater extent than combustion engines.

In 2022, only 4.9 out of 1,000 two-year-old EVs had breakdowns, which fell significantly, nearly by half, to 2.8 in 2023. This trend continued last year, with only 1.7 breakdowns per 1,000 EVs in 2024.

In comparison, the decline in breakdown rates of combustion engines has been relatively slow, with 6.9 combustion engines of the same age experiencing breakdowns per 1,000 such vehicles in 2023, dropping to 6.4 in 2024.

What this positive development shows is that electric vehicles are becoming increasingly reliable. As to what’s behind this, ADAC noted that many of the initial problems and weaknesses that EVs had in their early years have now been resolved as manufacturers get a better understanding through the continuous acquisition of knowledge and skills regarding operations and technologies.

Then there’s the increasing heterogeneity of the EV market. As the diversity of manufacturers and models continues to increase, individual and vulnerable models become less dominant. For instance, the three-year-old Hyundai Ioniq had a breakdown index of 11.8 in 2022, which significantly impacted the overall breakdown index that year. But as competitors increase, the overall breakdown rate decreases.

Despite all this, the ADAC noted that it’s still too early to make a final judgment on whether EVs are actually less prone to breakdowns overall.

Just What is Causing the Breakdowns?

EV Breakdown

A look into which components are responsible for these breakdowns in both electric vehicles and combustion engine vehicles reveals that the starter battery is the primary cause. 

The starter battery has actually been problematic for years now. For instance, back in 2015, 35.7% of breakdowns were caused by the 12-volt battery. 

In 2020, the occurrence of battery failures surged to 46.3% due to cars being driven either too little or not at all. Interestingly, a battery suffers more wear and tear when not in use than when it is in use. In 2024, dead batteries were responsible for 44.9% of breakdowns. 

Overall, a weak or defective onboard battery remains the most common cause of breakdowns across all component groups.

The battery, being the main cause of breakdown, affects all drive types, including both electric vehicles and combustion engine vehicles. However, the starter battery causes 50% of breakdowns in EVs and 45% in combustion engines. 

The number of breakdowns per 1,000 existing vehicles, i.e., the breakdown rate, is meanwhile higher for combustion engines than for EVs, due to their overall lower breakdown susceptibility as well as a lower incidence of other component failures. 

The other component responsible for breakdowns is problems with the engine electronics, which account for 22.1%. In EVs, this refers to the high-voltage system, and in combustion engines, it involves the injection and ignition systems.

As the report noted, internal combustion engines (ICEs) break down more often than e-cars due to being more complex and having many moving parts. Internal combustion engines consist of hundreds of parts, such as pistons, valves, and turbochargers, while an electric motor has a much simpler design and fewer moving parts, which translates to less potential for wear and tear.

Not only do electric motors not require engine oil, which can damage the engine over time, but they also produce less waste heat than internal combustion engines (ICEs), which operate at high temperatures and cause greater wear.

However, electric cars have their problems to deal with. This includes on-board electronics, which have a higher breakdown rate in EVs than combustion engines. The reason for this is that the 12-volt battery is prone to failure and discharging more quickly.

Another potential reason could be that users are using the apps to “wake up” their EVs, which puts a heavy strain on the battery and is being done more frequently by customers than manufacturers anticipated.

The third-largest cause of breakdown, at 10.6%, is failure in the starter, generator, electrical system, or lighting. This is followed by tire defects at 8.8% and locking systems at 6.9%. Combustion engines experience fewer problems with locking systems due to the higher level of connectivity in EVs, many of which can be unlocked via a mobile app.

Other factors, such as failures related to steering, body, and brakes, meanwhile, account for 6.7% of all breakdowns.

So, Who are the Winners?

In total, 68 model series have been proven to be extremely reliable, according to data from the ADAC. The most reliable vehicles belong to the lower mid-range class, while the transporter category has the least, followed by minicars and the upper mid-range class.

Among all, the Audi A4 has consistently achieved top marks in every year of first registration. It belongs to the mid-range class. Meanwhile, the Audi A1 in the small-range class, the Audi A3, Audi Q2, and Audi Q3 in the lower mid-range category, the Audi A5, Audi Q4 e-tron, and Audi Q5 in the mid-range, and the Audi A6 in the upper mid-range class are listed among the most reliable models.

Audi is a subsidiary of the German automaker Volkswagen Group, whose brand portfolio also includes SEAT, SKODA, Lamborghini, Bentley, Porsche, Ducati, Scania, and MAN. With a market cap of $52.8 billion, Volkswagen (VOW3-DE:XETRA) shares are currently at EUR 94.40, up over 6% YTD. With that, it has an EPS (TTM) of 32.01 and a P/E (TTM) of 2.95, while the dividend yield offered is 6.73%.

In 2024, the company reported revenue of $352.8 billion, a decrease of less than 1% from the previous year, while its vehicle sales dropped by 3.5%.

When it comes to Audi specifically, the company delivered around 1.7 million vehicles worldwide in 2024, with over 164,000 of those being fully electric models. This represents an overall decline of almost 12% and 8% for fully electric models, which was attributed to an intensely competitive market, limited parts availability, and challenging economic conditions.

Besides the Audi A4, the Mitsubishi ASX and the BMW i3 are also reliable series, with a breakdown index among the best 40% in all reported years.

As for other durable options, ADAC’s top picks in the minicar category include the Dacia Spring, Suzuki Ignis, and Toyota (TM +1.56%) Aygo, which are compact, budget-friendly cars that show strong reliability.

In the small car category, the BMW i3, Hyundai Kona, Mazda 2, Skoda Fabia, VW Polo, and Renault Zoe are notable mentions, indicating that electric small cars can also be quite reliable.

The BMW 1/2 Series, Mazda CX-5, VW Golf/Tiguan, and Skoda Karoq, in the lower middle class, offer a wide range of body styles, from crossovers to compact SUVs. Meanwhile, the BMW 3 Series, Mercedes C-Class, and VW Passat are included in the middle class. This category also includes the Tesla (TSLA +5.37%) Model 3 and Tesla Model Y, which were the best-selling passenger cars worldwide in 2024.

Elon Musk’s $765.4 billion market cap Tesla produced almost 1.68 million Model 3/Y in the entire year of 2024 and delivered just over 1.7 million of them.

The best series in the upper-middle class are the Audi A6, BMW 5 Series, Mercedes GLE, and VW Arteon, indicating strong build quality and longevity in higher-end models. At last, the Mercedes-Benz Sprinter is the only one trusted for commercial use, proving its reliability even under heavy-duty conditions.

With this data, ADAC not only provides an answer to the reliability of EVs but also helps used car buyers determine which models are dependable and make the appropriate choice. The analysis, which combines long-term reliability with performance and practicality across a wide range of vehicle categories, provides a great starting point for those in the market for a used vehicle.

What About the Losers?

When it comes to vehicles experiencing numerous issues, the report found that Toyota models have performed poorly over the last two years. Almost all model years of the Toyota C-HR and the Toyota RAV4 analyzed were actually found to be poor. 

This comes despite Toyota Motor being known for its quality. The company sold 10.8 million vehicles in 2024 to become the world’s top-selling automaker for the fifth year in a row. The Japanese automaker is followed by its rival Volkswagen, which sold just over 9 million vehicles.

The sales of Toyota’s parent-only vehicles, which included gasoline-electric hybrids that made up a record 40.8% and battery EVs accounting for just 1.4%, saw a double-digit decline in Japan. However, its hybrid vehicles gained demand in the US. It also saw a decline in its unit sales in China.

According to Statista, the Toyota Corolla is the second-best-selling car model of 2024. Meanwhile, the Toyota RAV4 ranks third worldwide and is the best-selling SUV model in the U.S. market.

The $282.25 billion market cap Toyota, whose shares are down 8.18% YTD with an EPS (TTM) of 24.38, a P/E (TTM) of 7.33, and a dividend yield of 3.06%, is actually considering producing the next version of its RAV4 SUV in the U.S. to avoid tariffs.

Toyota Motor Corporation (TM +1.56%)

Despite its popularity and wide usage, the ADAC has found that the Toyota brand contributes to breakdown-prone vehicles across all registration years, from small cars to mid-size cars.

Its four-year-old battery electric vehicle, the C-HR, contributes to the highest breakdown index of 63.1. The younger models of the Toyota Yaris (2021-2023) and Toyota Yaris Cross (2022-2023) are particularly affected. Its compact, city-friendly, small Aygo is the only one that has been included in the best model series.

According to ADAC:

“This breakdown frequency is surprising, as the Toyota brand has rightfully earned a reputation in the past for building cars that excel in terms of their exceptional reliability.” 

Discussing these statistical anomalies, Toyota explained that these models have experienced an increased incidence of battery problems, about which the company has received customer complaints and warranty claims. The problem was the installation of a starter battery that couldn’t be sufficiently charged. This would be replaced with a new battery of significantly increased current capacity, and no new vehicle would have a weakening battery. The automaker has also integrated battery monitoring into the MyToyota app’s Connected Services, so customers are always updated on their vehicle’s battery charge status.

Besides Toyota, German automobile manufacturer Opel, which has been a subsidiary of the $13.67 billion market cap Stellantis (STLA:NYSE) since January 2021, also has the highest breakdown figures between two and nine years. The Meriva (2016), Zafira (2015), and Insignia (2015-2018, 2022) models are included in those prone to breakdowns.

Conclusion

The electric vehicle industry is a fast-growing one, driven by technological advancements and low operating costs, which is due to stable and lower electricity prices, simpler mechanical structures, and government incentives. However, battery longevity and replacement cost remain major factors constraining the EV market. 

But as ADAC’s data points out, electric cars are actually more reliable than combustion engines, which can help alleviate some consumer concerns and, more importantly, help the used EV market grow.

With competition rising, leading to a growing range of models, the cost and reliability of EVs will only improve. Given that the technology is still new to most manufacturers, issues will persist for now, but it also means further improvements will continue to come at a rapid pace. All these developments over time will help make EVs gain a bigger market share and one day, may even replace combustion engine vehicles by producing better value and offering a dependable mobility option.

Click here for a list of top EV stocks.



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