Summary of Key Issues
The GAC Aion S series, particularly the models used for ride-hailing services, has encountered widespread issues with battery swelling, leakage, and sudden power outages due to the use of Zhongxin Chuanghang 177Ah lithium iron phosphate batteries. Approximately 210,000 vehicles are affected, mostly within the range of 150,000 to 300,000 kilometers (just past or approaching their original warranty period). After a surge in complaints from owners, GAC and Zhongxin Chuanghang have apologized and offered extended warranties of up to 8 years and 300,000 kilometers, as well as free repairs. However, they have not initiated the legal recall process. The core issue lies with batch defects in battery manufacturing, which raises the question of who will bear the substantial costs associated with repairs or recalls. Both companies are in financially challenging situations: Zhongxin Chuanghang's profit for 2025 is only 2.095 billion yuan, while GAC expects a loss of 4 to 4.5 billion yuan in the first half of the year, making it difficult for either party to undertake a recall.
I. Widespread Faults: The "Battery Maladies" of 210,000 Vehicles
The problematic vehicles were mainly produced between 2022 and 2023 and began to show symptoms after traveling 150,000 to 300,000 kilometers. The battery swelling resembled bloating, and the leakage was akin to drooling; some vehicles even experienced sudden power outages while in use. Within half a month, there were 182 complaints on the vehicle quality monitoring platform, with a fault detection rate of 4.7%. These issues have occurred across multiple regions including Guangdong, the Beijing-Tianjin-Hebei area, and the Yangtze River Delta. What's more distressing is that many owners had just passed their original 150,000-kilometer warranty period, and the 4S stores initially refused to compensate, demanding that the owners pay out of pocket for battery replacements—this means that ride-hailing drivers could lose half a year's worth of earnings.
II. Positive Responses but Avoiding the Core Issue: Why No Recall?
The responses from GAC and Zhongxin Chuanghang seem sincere, including extended warranties, free inspections, battery replacements, and financial compensation for vehicle downtime. But why not follow the legal requirements for a recall? A recall is a mandatory process that requires reporting to regulatory authorities and involves mandatory inspections and repairs for all affected vehicles, which is more costly. In contrast, an extended warranty allows issues to be addressed as they arise, which is both more flexible and less expensive. For example, when Jikr recalled 38,000 vehicles, it was because it was able to share the costs with the battery supplier Xinxinda. However, with the scale of this issue involving 210,000 vehicles, the potential cost could far exceed Jikr's compensation of 2.3 billion yuan, making both companies hesitant to proceed with a recall.
III. The Root Cause of the Short Battery Life: Quality Control Sacrificed for Market Share
Lithium iron phosphate batteries are designed to have a long lifespan, with over 3,000 charge-discharge cycles (equivalent to hundreds of thousands of kilometers). However, these 177Ah batteries failed prematurely due to manufacturing flaws:
- Battery engineers have revealed that Zhongxin Chuanghang cut short the battery testing cycle in order to secure GAC's orders.
- Upon disassembly, four major defects were identified: mismatch between the electrolyte and battery cells, poor assembly precision, inadequate anti-aging additives, and immature packaging technology. These issues were not detected during production but became apparent after the vehicles reached a certain mileage.
In essence, these are substandard products created under pressure to meet production deadlines, with quality being neglected in the pursuit of market share.
IV. Who Will Pay? Both Companies Face Heavy Financial Burdens
The cost of resolving this issue is staggering: Replacing batteries for 210,000 vehicles at a cost of 50,000 yuan each would total 10.5 billion yuan! Zhongxin Chuanghang's annual profit for 2025 is only 2.095 billion yuan, and GAC expects a loss of 4 to 4.5 billion yuan in the first half of the year—none of the companies can afford such a expense. While Jikr was able to share the costs with Xinxinda for its recall, the much larger scale of this issue means both will have to negotiate the burden. Since the batteries were manufactured by Zhongxin Chuanghang, it is theoretically responsible, but its profits are insufficient. GAC, as a car manufacturer, also bears some responsibility for quality control, yet it is also in a financial loss. Therefore, they are opting for an extended warranty to temporarily appease owners while discussing the cost allocation later on.
V. A Warning to the Industry: Don't Forget to Brake When Going Too Fast
This incident serves as a stark reminder to the new energy industry:
- Car manufacturers and battery suppliers must not sacrifice quality assurance in pursuit of higher sales volumes and market share.
- Vehicles used for ride-hailing, which experience high usage frequencies, require more reliable batteries; any shortcuts in manufacturing can lead to serious problems.
- Although securing major customers can lead to significant orders, both parties will be affected if issues arise (for example, Zhongxin Chuanghang sells 70% of its batteries to GAC, and now they are both caught in the controversy).
After all, consumers expect vehicles that are reliable and not prone to failure—quality is the foundation for long-term success.
In Conclusion
On the surface, this battery issue is about quality; deeper down, it reflects a struggle between speed and quality. Ultimately, it tests the responsibility and financial strength of the companies involved. It is hoped that both GAC and Zhongxin Chuanghang will resolve the issue as soon as possible, preventing consumers from bearing the costs of their rushed production processes.